The US housing industry over the past 48 hours shows a market in cautious transition with several significant developments. Data released this week underscores that affordability remains a critical challenge, with the median existing home price currently at four hundred three thousand seven hundred dollars, up two point seven percent year over year. Meanwhile, the average thirty year mortgage rate in April was six point seven one percent, still elevated and slightly higher than the previous month, contributing to ongoing affordability concerns for buyers. As a result, many potential buyers remain hesitant, with sales activity lagging behind typical spring levels.

Despite these headwinds, there are early signs of shifting dynamics. According to Zillow’s latest forecast, existing home sales in two thousand twenty five are projected to reach four point one two million, a one point four percent increase from last year. However, this figure is a downward revision from last month’s higher projection, reflecting tempered optimism. Zillow also predicts home values will decline by one point four percent in twenty twenty five, a smaller drop than previously forecast, as rising inventory and soft sales volume put downward pressure on prices.

Inventory is an emerging story. New homes for sale have surged to four hundred eighty one thousand, the highest since two thousand seven, while speculative homes are at their highest since two thousand eight. Single family listings are up roughly twenty percent year over year, though the number of available homes remains well below historical averages. This uptick in supply provides buyers with more options and slightly more negotiating power.

On the rental side, single family rents are expected to rise three point two percent in twenty twenty five, while multifamily rents will see a more modest two point one percent increase, according to Zillow. Builders are responding by increasing single family construction by an estimated three percent, though multifamily starts are set to decline by four percent, reflecting a strategic pullback after rapid expansion.

Industry leaders appear focused on managing risk and recalibrating growth strategies as economic uncertainty and potential regulatory shifts, including tariffs, continue to cloud the outlook. Compared to earlier in the year, today’s market features more listings, softer price gains, and tentative optimism among builders. The coming months will be crucial as both buyers and sellers adjust to this evolving environment.