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US Housing Market Update: Subdued Growth, Improving Inventory, Ongoing Affordability Challenges in May 2025
US Housing Market Update: May 2025
The US housing market continues to face challenges in May 2025, with recent data showing subdued growth amid persistent affordability concerns. Housing inventory has increased by nearly 20% year-over-year, providing more options for buyers, particularly in the South and West regions. This represents a significant shift from the extreme inventory shortages of recent years.
Home prices nationwide have shown modest appreciation, with the average US home value now at $367,711, reflecting a slight 1.4% increase over the past year. This marks a significant slowdown compared to previous years, as experts predict home price growth will average just 2% for 2025, down from 4.5% in 2024.
The market remains "largely frozen" according to J.P. Morgan analysts, who cite exceptionally low demand as measured through existing home sales. While housing inventory is improving, it still falls below historical averages needed for a balanced market. Single-family existing homes for sale have increased about 20% year-over-year but remain 20-30% below prior low points.
New home supply presents a different picture. With 481,000 new homes for sale (highest since 2007) and 385,000 speculative homes available (highest since 2008), these metrics are approximately 50% and 40% above long-term averages respectively. Michael Rehaut, head of US Homebuilding Research at J.P. Morgan, notes that "supply should be less of a support for the housing market in 2025."
Mortgage rates continue to challenge potential buyers, though there are signs of possible improvement later this year. Market experts anticipate that 2025 will remain difficult for homebuyers, with rising prices and slowing construction creating ongoing affordability issues.
The impact of recent tariffs and policies from the new presidential administration remains uncertain, representing additional variables that could further influence market conditions in the coming months.
This content was created in partnership and with the help of Artificial Intelligence AI
The US housing market continues to face challenges in May 2025, with recent data showing subdued growth amid persistent affordability concerns. Housing inventory has increased by nearly 20% year-over-year, providing more options for buyers, particularly in the South and West regions. This represents a significant shift from the extreme inventory shortages of recent years.
Home prices nationwide have shown modest appreciation, with the average US home value now at $367,711, reflecting a slight 1.4% increase over the past year. This marks a significant slowdown compared to previous years, as experts predict home price growth will average just 2% for 2025, down from 4.5% in 2024.
The market remains "largely frozen" according to J.P. Morgan analysts, who cite exceptionally low demand as measured through existing home sales. While housing inventory is improving, it still falls below historical averages needed for a balanced market. Single-family existing homes for sale have increased about 20% year-over-year but remain 20-30% below prior low points.
New home supply presents a different picture. With 481,000 new homes for sale (highest since 2007) and 385,000 speculative homes available (highest since 2008), these metrics are approximately 50% and 40% above long-term averages respectively. Michael Rehaut, head of US Homebuilding Research at J.P. Morgan, notes that "supply should be less of a support for the housing market in 2025."
Mortgage rates continue to challenge potential buyers, though there are signs of possible improvement later this year. Market experts anticipate that 2025 will remain difficult for homebuyers, with rising prices and slowing construction creating ongoing affordability issues.
The impact of recent tariffs and policies from the new presidential administration remains uncertain, representing additional variables that could further influence market conditions in the coming months.
This content was created in partnership and with the help of Artificial Intelligence AI
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By Inception Point AiUS Housing Market Update: May 2025
The US housing market continues to face challenges in May 2025, with recent data showing subdued growth amid persistent affordability concerns. Housing inventory has increased by nearly 20% year-over-year, providing more options for buyers, particularly in the South and West regions. This represents a significant shift from the extreme inventory shortages of recent years.
Home prices nationwide have shown modest appreciation, with the average US home value now at $367,711, reflecting a slight 1.4% increase over the past year. This marks a significant slowdown compared to previous years, as experts predict home price growth will average just 2% for 2025, down from 4.5% in 2024.
The market remains "largely frozen" according to J.P. Morgan analysts, who cite exceptionally low demand as measured through existing home sales. While housing inventory is improving, it still falls below historical averages needed for a balanced market. Single-family existing homes for sale have increased about 20% year-over-year but remain 20-30% below prior low points.
New home supply presents a different picture. With 481,000 new homes for sale (highest since 2007) and 385,000 speculative homes available (highest since 2008), these metrics are approximately 50% and 40% above long-term averages respectively. Michael Rehaut, head of US Homebuilding Research at J.P. Morgan, notes that "supply should be less of a support for the housing market in 2025."
Mortgage rates continue to challenge potential buyers, though there are signs of possible improvement later this year. Market experts anticipate that 2025 will remain difficult for homebuyers, with rising prices and slowing construction creating ongoing affordability issues.
The impact of recent tariffs and policies from the new presidential administration remains uncertain, representing additional variables that could further influence market conditions in the coming months.
This content was created in partnership and with the help of Artificial Intelligence AI
The US housing market continues to face challenges in May 2025, with recent data showing subdued growth amid persistent affordability concerns. Housing inventory has increased by nearly 20% year-over-year, providing more options for buyers, particularly in the South and West regions. This represents a significant shift from the extreme inventory shortages of recent years.
Home prices nationwide have shown modest appreciation, with the average US home value now at $367,711, reflecting a slight 1.4% increase over the past year. This marks a significant slowdown compared to previous years, as experts predict home price growth will average just 2% for 2025, down from 4.5% in 2024.
The market remains "largely frozen" according to J.P. Morgan analysts, who cite exceptionally low demand as measured through existing home sales. While housing inventory is improving, it still falls below historical averages needed for a balanced market. Single-family existing homes for sale have increased about 20% year-over-year but remain 20-30% below prior low points.
New home supply presents a different picture. With 481,000 new homes for sale (highest since 2007) and 385,000 speculative homes available (highest since 2008), these metrics are approximately 50% and 40% above long-term averages respectively. Michael Rehaut, head of US Homebuilding Research at J.P. Morgan, notes that "supply should be less of a support for the housing market in 2025."
Mortgage rates continue to challenge potential buyers, though there are signs of possible improvement later this year. Market experts anticipate that 2025 will remain difficult for homebuyers, with rising prices and slowing construction creating ongoing affordability issues.
The impact of recent tariffs and policies from the new presidential administration remains uncertain, representing additional variables that could further influence market conditions in the coming months.
This content was created in partnership and with the help of Artificial Intelligence AI