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However, there are two big trends that stand out as we launch into 2025 affordability and sellers in the market. In 2025, housing affordability in the U.S. That growth is in jeopardy if we stay at the high end of the mortgage rate range into the first quarter 2025. The elephant in the room is affordability.
Home prices in 2025 are a couple percentage points above where they were last year at this time. New listings To get a lot of homes on the market though we need some sellers. In total, it was another week with fewer home sellers that last year. Its hard to grow inventory too much when there arent many sellers.
That’s 12% more sellers than a year ago. This is the trend that will be the theme for 2025. It seems more sellers are coming out every week and that will keep inventory pushing upward. Sellers are up, but sales are down. There were 12% more sellers this week than the same week in early January 2024.
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? Lets look at last weeks data and see if we can tease out the signals for impact on the 2025 housing market.
What will the housing market look like in 2025? For a more comprehensive look, read our 2025 Housing Market Forecast covering home prices, home sales volumes and more. One of the conclusions of our forecast is that we’ll see inventory growth in 2025 again, with about 17% more homes on the market by the end of next year.
As we look into 2025, the question everyone is asking is: Do we have a new era starting? Supply growth could also come from more sellers, such as investors or distressed borrowers unloading. However, in most of the country, we have no growth from the seller side. more sellers than the same week a year ago.
As inventory builds and, as there are fewer offers from homebuyers , more sellers feel the need to reduce the asking price of the homes for sale. Lets take a look at the data for the final week of January 2025. Sellers who dont get an offer may choose to cut their price. I am hoping for 5-10% seller growth each week.
Lets take a look at the data for the third week of January 2025. In 2025, the price appreciation curve is flatter still. Home sellers and listing agents know where demand is for homes. Meanwhile, the median price of the new contracts pending this week came in at $384,700, which was a slight jump from last week.
Potential home sellers notice weak demand, fewer offers and price reductions, prompting them to back away from the market. If potential sellers avoid the market, this will keep a lid on supply growth. New listings are hitting the market Last year was an environment with 5% to 10% more sellers each week than a year prior.
According to the Realtor.com January Monthly Housing Report, January saw a positive shift in seller activity despite recent hikes in mortgage rates, with the number of newly listed homes increasing 37.5% By the end of the year, that percentage is predicted to drop to 75%, according to the 2025 Realtor.com Housing Forecast. 1.2% +54.9%
Home negotiations technology platform Indigo just received a large investment to expand its operations in 2025. The company announced this week that it secured $8 million in funding to offer better insights and cohesiveness to real estate agents. Indigo is a search platform that allows buyers to bid on agent-approved listings.
More inventory should be a sign of the market’s return to normalcy, according to Mohtashami, as the market enters 2025 with 27% more inventory compared to early 2024. The homes that went under contract took 43 days to do so the slowest pace since 2019. ” According to the report, 54.5%
Compared to a month prior, contract signings fell 5.5% An index reading of 100 is equal to the level of contract signings in 2001. After four straight months of gains in contract signings, one step back is not welcome news, but it is not entirely surprising, Lawrence Yun, NARs chief economist, said in a statement. in the West.
increase in the Pending Home Sales Index (PHSI), a measure of future home sales based on contract signings, to 75.8, The amount of contract activity in 2001 is represented by an index of 100. Year-over-year, contract signings grew in the Northeast and West and were unchanged in the Midwest and South. September saw a 7.4%
In those times, we just had far more buyers than sellers. Thats not true now, so we should expect inventory to begin building for the year in February 2025. The total number of unsold homes on the market to start 2025 is just 18% fewer than at the start of 2018, seven years ago. million in 2025.
Its quite obvious that stubbornly high mortgage rates slowed down early season homebuyers in the first quarter of 2025. Last week at HousingWires Housing Economic Summit in Dallas, I shared the data on why I expect that the same 6% threshold will be what were facing in 2025. This is after Q4 2024 was 5% above the year prior.
New contracts for home purchases are coming in very low this month. Buyer activity has been dropping for several weeks and there are now fewer homes in contract than a year ago. Buyer activity has been dropping for several weeks and there are now fewer homes in contract than a year ago. When will that be? I have no idea.
With just a few local market exceptions, home prices nationally will finish the year up again and will go into 2025 with some upward momentum. The median price of the homes that went into contract this week — these are the new purchase offers with contracts pending — is now 6% greater than last year.
This week, we count 14% more homes in the contract pending stage now than a year ago. When you include the 9,400 immediate sales, the total is 13% more sellers than a year ago. Last year at this time, the market was in deep retrenchment — both buyers and sellers were walking away. Sellers could dip again next week.
Are there any signs of sales growing for 2025? See the purple line for 2025 keeps coming in just below 2024. This year, if current trends hold, we could already be past that point in 2025. That is, theyre no longer listed for sale and theyre not in contract. in 2025 over the previous year. Something to watch.
of homes that went under contract last month. Economic uncertainty: With tariffs, reductions in the federal workforce, return to office mandates, and mortgage rate uncertainty, a lot is up in the air for a lot of Americans right now, and Redfin agents report this is giving buyers (and sellers) cold feet. Thats up from 13.4%
But this year, buyers jumped on mortgage rates that dipped in early October, bringing more contracts which closed in November.Assuming December sales are generally good, 2024 U.S. Homes with November closings generally went under contract in September and October, when shoppers benefited from an uptick in newly-listed for-sale homes.
The defining characteristic of the 2023 housing market has been dramatically fewer home sellers than any recent year. In this week’s Altos Research video, I look at how home sellers and sales are up, but that doesn’t mean prices will climb in 2024. Could we see new inventory from distressed sellers if we see a deep recession?
The index includes sales of properties that went under contract in October, so it doesn’t quite capture what’s currently happening in the housing market. “It is expected that we will see slower price growth in early 2025 as inventory increases and affordability continues to be a constraint.”
The class encompasses home sellers across 20 local MLSs. In its filing, HomeServices asked for a review of an August 2023 ruling by the Eighth Circuit Court, which found that HomeServices could not enforce arbitration agreements signed by seller clients of its franchisees. The trial would take place in Chicago at the U.S.
Open house postcards Open house postcard from Wise Pelican Open house postcard from Agents Assemble on Etsy Open house postcard from Agents Assemble on Etsy Open house postcards are a valuable tool in the real estate agent’s arsenal, designed to draw prospective buyers and sellers to your property listings.
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. Last week saw 2% week-to-week growth but was down 1% year over year.
Now its pretty clear that sellers arent slashing asking prices and mortgage rates arent plummeting, so mindsets are shifting. Key findings from the four weeks ending January 26: Before the seller accepted an offer, the average U.S. Key findings from the four weeks ending January 26: Before the seller accepted an offer, the average U.S.
Home sellers are returning to the market, but buyers are hesitant, according to a recent Zillow market report. Median days to pending, the typical time from initial list date to pending status for homes that went under contract during a month, is at 13 days in May, which is unchanged from April. through May 2025.
Year-over-year, contract signings increased in all four U.S. NARs Pending Home Sales Index (PHSI)a forward-looking indicator of home sales based on contract signingsadvanced 2.2% A PHSI reading of 100 is equal to the level of contract activity in 2001. regions, with the West leading the pack. in November. from November 2023.
So while we can see currently the prices of home sales holding up, the signals for the end of 2024 and into 2025 seem to suggest we’re heading for flat home prices. More sellers means more sales will happen. We can measure home sales in real time by tracking all the homes that moved to contract pending status this week.
trillion in origination volume in 2025, up from a projected $1.70 The survey of 1,180 real estate agents across six Mid-Atlantic states and the District of Columbia found that 14% of sellers in June saw a contract fall through due to a buyer’s inability to secure financing, which was up from 11% in May. in 2024 and to 6.4%
While it’s unclear exactly how home buyers and sellers are reacting to the situation, a startup tech company called Rayse is “pushing back on the settlement” with a new communication platform that allows prospective buyers to track what their agents are doing in real time. But Rayse also plans integration for seller agents sometime in 2025.
New listings volume continues to run ahead of last year and we see more sellers than last year. Last year was probably a record low for mid-March as we had very few sellers. For the rest of 2024 we should expect to have more sellers than a year ago, which is a very good thing. That’s 15% more than the same week a year ago.
This week saw 6% fewer sellers than even last year which was already super low. Next year, a healthier housing market will see that number climb over 70,000 per week to maybe 80,000 sellers per week. Pending home sales stay the same There were 64,000 new contracts pending this week for single-family homes. fewer than a week ago.
Slower growth of unsold homes on the market is a result of too few sellers on the supply side and stability on the demand side. There’s nothing in the data that says 2024 is going to accelerate, so the most optimistic scenario we’re watching for is stability and maybe poised for a sales recovery in 2025. Texas inventory grew by 1.5%
Now is a good time–at least compared to the recent past–for serious house hunters to get under contract on a home,” said Daryl Fairweather, Chief Economist at Redfin. The current small decline in rates may encourage more potential sellers to come off the sidelines. It is unlikely that prices would decrease significantly very soon.
Many of those sellers will list if rates get back down to 5%.” Additionally, contract volume in August 2024 across all price tiers increased compared to August 2023, suggesting a steadier housing market and evidence of demand from potential homebuyers, further demonstrating a seller’s market. elementor-widget-text-editor:not(.elementor-drop-cap-view-default).elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default).elementor-drop-c
Sellers have not materialized, and buyers have been buying everything that becomes available. The median price of the homes in contract is higher than last year and the new sales each week are up a few percent over last year. We could see inventory from distressed sellers emerge in 2025. I grew pretty bearish again.
2024: 1,335 2023: 1,436 2022: 1,258 Pending Home Sales: The number of homes placed under contract is down by 14.6% Although pending sales have slowed, the decrease in inventory means theres less competition for sellers. Lets turn your homeownership dreams into reality in 2025! when compared to November 2023.
2024: 1,086 2023: 1,082 2022: 1,173 Pending Home Sales: The number of homes placed under contract is up by 28.3% While home sales are down, the increase in inventory and demand means there are still great opportunities for both buyers and sellers. Lets turn your homeownership dreams into reality in 2025! by month’s end.
2024: 1,174 2023: 1,294 2022: 1,231 Pending Home Sales: The number of homes placed under contract is up by 6.4% Sellers now could be the perfect time to list your home. Lets turn your homeownership dreams into reality in 2025! In 2025, the FHFA is increasing the conforming loan limit to $806,500up $40,000 from 2024.
January 2025 New Hampshire Housing Report NEW HAMPSHIRE Home Sales Down, Average Price Up Home sales are down 1.3% year over year, with January 2025 at 955 compared to 968 last January. 2025: 1,233 2024: 1,112 2023: 965 Pending Home Sales: The number of homes placed under contract is down by 0.2% Planning to sell in 2025?
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