The U.S. housing market is experiencing a significant slowdown, akin to patterns last seen in early 2015. Recent data shows February 2025 recorded the lowest home sales since then, with 248,233 residences sold—a 7% drop from the previous year. This decline is attributed to rising interest rates put in place by the Federal Reserve to combat inflation, compounded by high home prices and low affordability. The median U.S. home price in February was $352,000, nearly triple the cost of mortgage payments from a decade ago, creating serious financial challenges for potential buyers.
The last time fewer homes changed hands in any month was February 2015, during a period characterized by significant economic uncertainty and rising interest rates.
Homebuying across the country has chilled since the Federal Reserve began raising interest rates in early 2022, combating inflation, causing significant shifts in buyer behavior.
Median home prices remain high despite rising mortgage rates, with February's median sales price hitting $352,000, reflecting a severe affordability crisis for potential buyers.
The estimated house payment for a median-priced home in February 2025 is nearly triple what it was in February 2015, exacerbating the affordability challenge.
Collection
[
|
...
]