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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. 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.

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2025 could be the last year of inventory shortage

Housing Wire

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.

Inventory 488
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More home sellers but fewer home sales

Housing Wire

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.

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What rising inventory means for the 2025 housing market

Housing Wire

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.

Inventory 418
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What to expect from the 2025 housing market

Housing Wire

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.

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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? 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.

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Weak demand is forcing more home sellers to reduce their asking price

Housing Wire

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.

Sellers 400