US HOUSING MARKET UPDATE: JUNE 2025
The US housing market continues to navigate challenging conditions as we move into June 2025, according to recent data from industry experts. National Association of Realtors Chief Economist Lawrence Yun described the current housing market as "very difficult" during the NAR 2025 REALTORS Legislative Meetings held on June 3[1].
Despite present challenges, Yun forecasted positive growth, projecting existing home sales to increase by 6% in 2025 and 11% in 2026. New-home sales are expected to rise by 10% this year and 5% in 2026, with median home prices climbing 3% in 2025 and 4% in 2026[1].
A key factor influencing market recovery is Federal Reserve policy. The Fed has adjusted its economic outlook, appearing to maintain interest rates for a longer period than previously anticipated. This comes after downgrading GDP growth forecasts from 2.1% to 1.7% and raising inflation projections to 2.7% in March 2025[1].
Mortgage rates remain a critical concern for buyers, with Yun predicting rates will average 6.4% in the second half of 2025 before dropping slightly to 6.1% in 2026[1].
Recent housing supply increases have helped stabilize prices, which are now more aligned with pre-pandemic trends according to market insights released yesterday, June 5[3]. The construction sector shows mixed signals, with single-family home construction expected to grow by 3% in 2025, while multifamily starts may decline by 4% before eventually rebounding[2].
Market analysis from June 4 identifies several emerging trends, including cooling market conditions creating new opportunities for buyers, increasing demand for energy-efficient homes, and growing interest in co-living arrangements[4].
As industry stakeholders respond to these developments, the housing market continues its gradual adjustment toward more sustainable growth patterns, though significant challenges remain for both buyers and sellers in the current economic environment.
This content was created in partnership and with the help of Artificial Intelligence AI