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What to expect from the 2025 housing market

Housing Wire

What will the housing market look like in 2025? We already see many signals for what to expect, including last week’s data on inventory , new listings and price reductions, which I analyze below. For a more comprehensive look, read our 2025 Housing Market Forecast covering home prices, home sales volumes and more.

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Will 2025 finally be a “normal” housing market?

Housing Wire

As we look into 2025, the question everyone is asking is: Do we have a new era starting? What can the data today tell us about signals for growth or weakness after the new year? New listings on trend Nationally, there were just 31,000 new listings for single-family homes from the last week which included Thanksgiving weekend.

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What rising inventory means for the 2025 housing market

Housing Wire

Inventory is still very tight in places like Chicago and New England, but it is rising in these markets. And 2025 is poised to continue the trend of rising inventory across the country. Well probably finish 2025 with 15% more homes available than we have now. How will that impact home prices in 2025?

Inventory 369
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Buying a home is growing even less affordable

Housing Wire

When we released the HousingWire 2025 forecast paper earlier this month, we discussed how we assume continued inventory growth in 2025, but at a slower pace of appreciation than we saw this year. The 2025 lines will trend higher, even closer to the old normal levels. This level of new listings will lead to inventory growth.

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How are mortgage rates affecting housing demand?

Housing Wire

Weekly pending sales The Altos Research weekly pending contract data provides insights into real-time demand. Even today, the pending contract data remains resilient despite higher home prices and mortgage rates than last year. Still, when it’s all said and done, 2024 will be the second-lowest new listings year in history.

Mortgage 514
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Housing demand still showing double-digit growth

Housing Wire

We also see growth in our pending contract data compared to 2022 and 2023. Weekly pending sales The weekly pending contract data from Altos Research offers an insightful look into real-time housing demand. New listings havent hit the numbers I hoped for this year; I got close, but its off by 5,000.

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Pending home sales surged in December: NAR

Housing Wire

For comparison, the index is benchmarked at a reading of 100 based on 2001 contract activity. New home sales , another measure of contract signings, rose 8% in December on the back of declining mortgage rates. increase between 2024 and 2025 to a pace of 5.35 increase between 2024 and 2025 to a pace of 5.35

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