Sign up to save your podcasts
Or
Share "US Housing Market Shifts Toward Balanced Conditions Amid Affordability Challenges"
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
"US Housing Market Shifts Toward Balanced Conditions Amid Affordability Challenges"
The US housing industry is experiencing a gradual but significant shift toward a more balanced market as of August 2025. Recent data shows that housing inventory is on the rise, with even highly competitive regions like the Northeast and West Coast seeing more homes available. This increase is allowing for the most buyer-friendly conditions in nearly a decade, though the market is not yet firmly in buyers territory; the nationwide months supply stood at 4.4 in May, below the historical threshold of 6 that typically marks a true buyers market.
Home prices are largely holding steady. Zillow’s latest forecast, updated this week, predicts that home values will rise only 0.4 percent over the next year, a major cooldown compared to earlier estimates and the faster price hikes seen in previous years. The national median list price remains elevated at $439,450 as of July, up a modest 0.5 percent from last year. However, this price level represents a nearly 38 percent jump since 2019, squeezing affordability despite some regional wage gains.
Mortgage rates remain sticky, showing little sign of a major drop in the short term. Most experts peg the 30-year fixed rate in the 6.5 to 6.7 percent range for the rest of 2025, and while there is hope for lower rates in 2026, buyers are largely waiting for better financing before committing. Only 28 percent of US homes are affordable for the typical household, underlining the affordability crisis.
Builders are responding by offering steeper incentives and price cuts—37 percent of builders cut prices in August with discounts averaging five percent, and 66 percent used sales incentives, the highest since the pandemic. Builder confidence remains weak at just 32 out of 100 for August, with most holding off on new projects unless costs or rates drop. In metro areas like Cleveland, improved wage growth has helped some buyers, but national consumer buying power has generally declined.
Overall, the industry is facing a reset: activity has slowed, supply is up, buyer traffic is weak, and price corrections are underway in high-inventory regions. Industry leaders like homebuilders are pivoting to deeper discounts while lobbying for lower rates, and policymakers are under growing pressure to ease regulatory and financial burdens. Compared to six months ago, the outlook is more cautious. The rapid pandemic-era surge has cooled, and the sector is recalibrating for slower, more sustainable growth.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI
Home prices are largely holding steady. Zillow’s latest forecast, updated this week, predicts that home values will rise only 0.4 percent over the next year, a major cooldown compared to earlier estimates and the faster price hikes seen in previous years. The national median list price remains elevated at $439,450 as of July, up a modest 0.5 percent from last year. However, this price level represents a nearly 38 percent jump since 2019, squeezing affordability despite some regional wage gains.
Mortgage rates remain sticky, showing little sign of a major drop in the short term. Most experts peg the 30-year fixed rate in the 6.5 to 6.7 percent range for the rest of 2025, and while there is hope for lower rates in 2026, buyers are largely waiting for better financing before committing. Only 28 percent of US homes are affordable for the typical household, underlining the affordability crisis.
Builders are responding by offering steeper incentives and price cuts—37 percent of builders cut prices in August with discounts averaging five percent, and 66 percent used sales incentives, the highest since the pandemic. Builder confidence remains weak at just 32 out of 100 for August, with most holding off on new projects unless costs or rates drop. In metro areas like Cleveland, improved wage growth has helped some buyers, but national consumer buying power has generally declined.
Overall, the industry is facing a reset: activity has slowed, supply is up, buyer traffic is weak, and price corrections are underway in high-inventory regions. Industry leaders like homebuilders are pivoting to deeper discounts while lobbying for lower rates, and policymakers are under growing pressure to ease regulatory and financial burdens. Compared to six months ago, the outlook is more cautious. The rapid pandemic-era surge has cooled, and the sector is recalibrating for slower, more sustainable growth.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI
View all episodes
By Inception Point AiThe US housing industry is experiencing a gradual but significant shift toward a more balanced market as of August 2025. Recent data shows that housing inventory is on the rise, with even highly competitive regions like the Northeast and West Coast seeing more homes available. This increase is allowing for the most buyer-friendly conditions in nearly a decade, though the market is not yet firmly in buyers territory; the nationwide months supply stood at 4.4 in May, below the historical threshold of 6 that typically marks a true buyers market.
Home prices are largely holding steady. Zillow’s latest forecast, updated this week, predicts that home values will rise only 0.4 percent over the next year, a major cooldown compared to earlier estimates and the faster price hikes seen in previous years. The national median list price remains elevated at $439,450 as of July, up a modest 0.5 percent from last year. However, this price level represents a nearly 38 percent jump since 2019, squeezing affordability despite some regional wage gains.
Mortgage rates remain sticky, showing little sign of a major drop in the short term. Most experts peg the 30-year fixed rate in the 6.5 to 6.7 percent range for the rest of 2025, and while there is hope for lower rates in 2026, buyers are largely waiting for better financing before committing. Only 28 percent of US homes are affordable for the typical household, underlining the affordability crisis.
Builders are responding by offering steeper incentives and price cuts—37 percent of builders cut prices in August with discounts averaging five percent, and 66 percent used sales incentives, the highest since the pandemic. Builder confidence remains weak at just 32 out of 100 for August, with most holding off on new projects unless costs or rates drop. In metro areas like Cleveland, improved wage growth has helped some buyers, but national consumer buying power has generally declined.
Overall, the industry is facing a reset: activity has slowed, supply is up, buyer traffic is weak, and price corrections are underway in high-inventory regions. Industry leaders like homebuilders are pivoting to deeper discounts while lobbying for lower rates, and policymakers are under growing pressure to ease regulatory and financial burdens. Compared to six months ago, the outlook is more cautious. The rapid pandemic-era surge has cooled, and the sector is recalibrating for slower, more sustainable growth.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI
Home prices are largely holding steady. Zillow’s latest forecast, updated this week, predicts that home values will rise only 0.4 percent over the next year, a major cooldown compared to earlier estimates and the faster price hikes seen in previous years. The national median list price remains elevated at $439,450 as of July, up a modest 0.5 percent from last year. However, this price level represents a nearly 38 percent jump since 2019, squeezing affordability despite some regional wage gains.
Mortgage rates remain sticky, showing little sign of a major drop in the short term. Most experts peg the 30-year fixed rate in the 6.5 to 6.7 percent range for the rest of 2025, and while there is hope for lower rates in 2026, buyers are largely waiting for better financing before committing. Only 28 percent of US homes are affordable for the typical household, underlining the affordability crisis.
Builders are responding by offering steeper incentives and price cuts—37 percent of builders cut prices in August with discounts averaging five percent, and 66 percent used sales incentives, the highest since the pandemic. Builder confidence remains weak at just 32 out of 100 for August, with most holding off on new projects unless costs or rates drop. In metro areas like Cleveland, improved wage growth has helped some buyers, but national consumer buying power has generally declined.
Overall, the industry is facing a reset: activity has slowed, supply is up, buyer traffic is weak, and price corrections are underway in high-inventory regions. Industry leaders like homebuilders are pivoting to deeper discounts while lobbying for lower rates, and policymakers are under growing pressure to ease regulatory and financial burdens. Compared to six months ago, the outlook is more cautious. The rapid pandemic-era surge has cooled, and the sector is recalibrating for slower, more sustainable growth.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI