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"Navigating the Evolving US Housing Market: Affordability Challenges, Supply Dynamics, and Shifting Momentum"
The U.S. housing industry over the past 48 hours remains defined by affordability challenges, shifting supply dynamics, and mixed signals on market momentum. Inventory is rising, with total housing supply reaching 1.54 million units, the highest since the pandemic and representing a 4.6-month supply. However, this is still below pre-pandemic norms, which is helping to keep home prices firm nationwide. The median existing-home price reached $422,800 in May 2025, up 1.3 percent year-over-year, setting a new record for the month.
Mortgage rates have fluctuated between 6.7 and 6.9 percent since mid-April, causing both buyers and sellers to hesitate. While rates dipped slightly from their 2024 peak, they remain historically high. This has deterred many first-time buyers, as affordability is now at a generational low. Homeownership rates have stagnated at around 65.1 percent, identical to a year ago, and only 43 percent of households can afford a $300,000 home. Sales volumes reflect this strain: existing-home sales edged up 0.8 percent in May from April but were still down from a year earlier, and new home sales last spring hit a three-decade low.
Market behavior is diverging along regional lines. The Northeast is showing slight price gains and faster sales, while markets in the South and West are cooling rapidly, with homes taking much longer to sell. Sellers in these slower regions are increasingly choosing to delist their properties instead of accepting lower prices, driving a spike in delistings—up 47 percent year-over-year.
Homebuilder sentiment improved modestly in July but remains weak, with new single-family housing starts falling 4.6 percent from May. Builders report that higher construction and borrowing costs are weighing on activity, pushing some to focus more on rental and multifamily units.
Industry leaders like the National Association of Realtors have downgraded their 2025 home sales outlook in response to persistently high mortgage rates, now projecting only 3 percent growth. Meanwhile, many sellers are relying on record high home equity, waiting for market conditions to meet their expectations rather than adjusting prices.
In summary, compared to a year ago, the industry shows signs of a slight supply-demand rebalance, but high prices and rates continue to keep overall activity muted. Buyers find more options, but affordability is a significant hurdle, and sellers remain reluctant to compromise, leading to standoffs in many markets.
For great deals today, check out https://amzn.to/44ci4hQ
Mortgage rates have fluctuated between 6.7 and 6.9 percent since mid-April, causing both buyers and sellers to hesitate. While rates dipped slightly from their 2024 peak, they remain historically high. This has deterred many first-time buyers, as affordability is now at a generational low. Homeownership rates have stagnated at around 65.1 percent, identical to a year ago, and only 43 percent of households can afford a $300,000 home. Sales volumes reflect this strain: existing-home sales edged up 0.8 percent in May from April but were still down from a year earlier, and new home sales last spring hit a three-decade low.
Market behavior is diverging along regional lines. The Northeast is showing slight price gains and faster sales, while markets in the South and West are cooling rapidly, with homes taking much longer to sell. Sellers in these slower regions are increasingly choosing to delist their properties instead of accepting lower prices, driving a spike in delistings—up 47 percent year-over-year.
Homebuilder sentiment improved modestly in July but remains weak, with new single-family housing starts falling 4.6 percent from May. Builders report that higher construction and borrowing costs are weighing on activity, pushing some to focus more on rental and multifamily units.
Industry leaders like the National Association of Realtors have downgraded their 2025 home sales outlook in response to persistently high mortgage rates, now projecting only 3 percent growth. Meanwhile, many sellers are relying on record high home equity, waiting for market conditions to meet their expectations rather than adjusting prices.
In summary, compared to a year ago, the industry shows signs of a slight supply-demand rebalance, but high prices and rates continue to keep overall activity muted. Buyers find more options, but affordability is a significant hurdle, and sellers remain reluctant to compromise, leading to standoffs in many markets.
For great deals today, check out https://amzn.to/44ci4hQ
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By Quiet. PleaseThe U.S. housing industry over the past 48 hours remains defined by affordability challenges, shifting supply dynamics, and mixed signals on market momentum. Inventory is rising, with total housing supply reaching 1.54 million units, the highest since the pandemic and representing a 4.6-month supply. However, this is still below pre-pandemic norms, which is helping to keep home prices firm nationwide. The median existing-home price reached $422,800 in May 2025, up 1.3 percent year-over-year, setting a new record for the month.
Mortgage rates have fluctuated between 6.7 and 6.9 percent since mid-April, causing both buyers and sellers to hesitate. While rates dipped slightly from their 2024 peak, they remain historically high. This has deterred many first-time buyers, as affordability is now at a generational low. Homeownership rates have stagnated at around 65.1 percent, identical to a year ago, and only 43 percent of households can afford a $300,000 home. Sales volumes reflect this strain: existing-home sales edged up 0.8 percent in May from April but were still down from a year earlier, and new home sales last spring hit a three-decade low.
Market behavior is diverging along regional lines. The Northeast is showing slight price gains and faster sales, while markets in the South and West are cooling rapidly, with homes taking much longer to sell. Sellers in these slower regions are increasingly choosing to delist their properties instead of accepting lower prices, driving a spike in delistings—up 47 percent year-over-year.
Homebuilder sentiment improved modestly in July but remains weak, with new single-family housing starts falling 4.6 percent from May. Builders report that higher construction and borrowing costs are weighing on activity, pushing some to focus more on rental and multifamily units.
Industry leaders like the National Association of Realtors have downgraded their 2025 home sales outlook in response to persistently high mortgage rates, now projecting only 3 percent growth. Meanwhile, many sellers are relying on record high home equity, waiting for market conditions to meet their expectations rather than adjusting prices.
In summary, compared to a year ago, the industry shows signs of a slight supply-demand rebalance, but high prices and rates continue to keep overall activity muted. Buyers find more options, but affordability is a significant hurdle, and sellers remain reluctant to compromise, leading to standoffs in many markets.
For great deals today, check out https://amzn.to/44ci4hQ
Mortgage rates have fluctuated between 6.7 and 6.9 percent since mid-April, causing both buyers and sellers to hesitate. While rates dipped slightly from their 2024 peak, they remain historically high. This has deterred many first-time buyers, as affordability is now at a generational low. Homeownership rates have stagnated at around 65.1 percent, identical to a year ago, and only 43 percent of households can afford a $300,000 home. Sales volumes reflect this strain: existing-home sales edged up 0.8 percent in May from April but were still down from a year earlier, and new home sales last spring hit a three-decade low.
Market behavior is diverging along regional lines. The Northeast is showing slight price gains and faster sales, while markets in the South and West are cooling rapidly, with homes taking much longer to sell. Sellers in these slower regions are increasingly choosing to delist their properties instead of accepting lower prices, driving a spike in delistings—up 47 percent year-over-year.
Homebuilder sentiment improved modestly in July but remains weak, with new single-family housing starts falling 4.6 percent from May. Builders report that higher construction and borrowing costs are weighing on activity, pushing some to focus more on rental and multifamily units.
Industry leaders like the National Association of Realtors have downgraded their 2025 home sales outlook in response to persistently high mortgage rates, now projecting only 3 percent growth. Meanwhile, many sellers are relying on record high home equity, waiting for market conditions to meet their expectations rather than adjusting prices.
In summary, compared to a year ago, the industry shows signs of a slight supply-demand rebalance, but high prices and rates continue to keep overall activity muted. Buyers find more options, but affordability is a significant hurdle, and sellers remain reluctant to compromise, leading to standoffs in many markets.
For great deals today, check out https://amzn.to/44ci4hQ