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The two big housing market trends to watch in 2025

Housing Wire

However, there are two big trends that stand out as we launch into 2025 affordability and sellers in the market. There are a few markets in the South where home prices have inched down recently and every bit helps buyers but those prices have not adjusted much, and theres no sign of any major correction in the works.

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Pending home sales rise again as buyers capitalize on more inventory

Housing Wire

“Despite higher mortgage rates in November and persistent affordability challengers, buyers took advantage of more inventory as pending home sales reached the highest level in nearly two years. ” Housing industry experts attribute the recent increases in pending home sales to a shift in buyer attitudes about mortgage rates.

Inventory 435
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What rising inventory means for the 2025 housing market

Housing Wire

As the year draws to a close, available unsold inventory of homes on the market is nearly 27% greater than a year ago. Ten states have more inventory unsold than in 2019, which was the last sort of normal year before the pandemic. Inventory is still very tight in places like Chicago and New England, but it is rising in these markets.

Inventory 418
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The homebuilders’ 2025 supply and demand problem

Housing Wire

New home sales grew over last month in the latest Census report , but homebuilders are now facing a supply issue their inventory is building up. When mortgage rates decline, sales improve, but it becomes more challenging for builders and buyers when rates rise. This situation poses a risk to construction labor in 2025.

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Housing inventory is up, but so are unsold listings. Are renters to blame?

Housing Wire

Rising housing inventory levels in 2024 may not be the positive sign of market health that they appear to be. High inventory levels contribute to another problem as active listings are remaining unsold for longer periods. Redfin refers to these listings as “stale inventory.” ” According to the report, 54.5%

Inventory 488
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Housing Market Predictions for 2025

Appraisal Buzz

Key Takeaways Interest rates should continue to decrease in 2025. Housing inventory will likely still be low in 2025, and demand could increase. Will Interest Rates Go Down in 2025? Good news: Mortgage rates will likely continue going down in 2025! But 510% is okay, too, if youre a first-time home buyer.

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Rising inventory is the most positive housing market story in 2024

Housing Wire

The most positive development in the housing market over 2024 has been the increase in active housing inventory , which is approaching the levels seen in 2019. During the first few years of COVID-19 recovery, there was an unhealthy imbalance, with too many buyers competing for too few homes. Weekly inventory change (Dec.

Inventory 514