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Home prices in 2025 are a couple percentage points above where they were last year at this time. One reason that home prices have stayed elevated is that inventory nationally is still restricted. But if current trends continue, the inventory shortage will be effectively gone by next spring. is more like 5% per year.
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.
As mortgage rates rose, homebuyer demand slowed and inventory grew. In 2025, mortgage rates have stayed stubbornly high for yet another spring buying season. Our 2025 housing market predictions are based on the assumption that lower mortgage rates will spur demand and boost the number of homes sales transactions.
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.
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. This situation poses a risk to construction labor in 2025. Is 2025 the first year we start losing residential construction jobs? percent (18.6 percent (19.3
Better mortgage spreads are limiting how high rates can rise in 2025. Today, I want to explain why this topic is essential as we look ahead to the rest of 2025. However, spreads have improved in 2024 and 2025, which is helping to limit how high mortgage rates can go this year. In 2023, spreads reached as high as 3.10%.
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%
“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. Buyers appear to be done waiting for rates to fall, prompting them to enter the market to take advantage of higher inventory levels.
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.
There are three big trends in the spring 2025 housing market: Supply continues to build. This is measurable in both the total unsold inventory and the number of new listings each week. 2025 has more homes on the market with price cuts than any March in the last decade. Thats right about what well end 2025 with also.
As we look into 2025, the question everyone is asking is: Do we have a new era starting? We know inventory has been climbing all year. The northern cities have tight inventory and rising prices, some of the Sunbelt cities have the most inventory in many years, and some markets even have falling prices, too.
Despite 2025 housing market predictions changing fast , there are still key themes and trends for real estate leaders to watch to best serve their clients and business. HW: What housing trends do you think will continue in 2025 and why? JL: Housing inventory has been climbing in recent months.
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! Will the Housing Market Crash in 2025?
Realtor.com has revealed its Top Housing Markets for 2025 , highlighting the areas ready for growth in the year ahead. Inventory on the Rise While the nations housing inventory remains a challenge, a recovery is underway, with the number of homes for sale in November notching the highest mark since December 2019.
While some of those markets have since seen a reversal of fortunes, 2025 may bring a few more surprises. Locked-in mortgages have been widely credited with cutting off housing inventory. NAR expects the Midwest revival to continue in 2025, as Indianapolis and Grand Rapids, Michigan, are among 10 metro areas listed.
Recently, weve shared that the inventory of unsold homes is growing. There are already plenty of markets nationwide where the inventory of unsold homes has built up over the past few years and home prices have ticked down. Lets take a look at the data for the third week of January 2025. this week is $421,000. It is negative.
As 2025 draws near, mortgage rates are once again in the news. Zillow anticipates a more active housing market with more buyers obtaining the upper hand in 2025. More inventory should shake loose in 2025, giving buyers a bit more room to breathe.” increase in property values in 2025. Zillow predicts 4.3
Zillow is predicting a more active housing market in 2025 , but those hoping to buy — or even refinance — should buckle up for a bumpy ride and be ready to move when conditions are right. More inventory should shake loose in 2025, giving buyers a bit more room to breathe. For existing home sales, Zillow forecasts 4.3
Dramatic mortgage rate movements are destined to play a major role in the coming year, according to Zillow ‘s newest forecast , which also calls for declining mortgage rates to be a catalyst for home-sales growth and home-price appreciation in 2025. “There’s a strong sense of dj vu on tap for 2025. million in 2025.
2025 has been much different. Here is the weekly data for 2025: 6 positive readings 3 negative readings 3 flat prints In general, we have noted encouraging year-over-year growth in most of the weekly purchase apps data for 2025. As we can see, the outlook for 2025 appears to be different.
The panel dissected the housing market’s current state marked by rising inventory, affordability challenges, elevated mortgage rates , and investor uncertainty and what it all means for the rest of 2025 and beyond. Ivy Zelman added that due to margins, builder availability to by down rates may start to fade.
If 2025 follows the seasonal trends of the past few years, sellers who list their property this week may see more buyers in the market, sell their home more quickly, and receive an average of $27,000 more than they would at the beginning of the year. higher than the beginning of the year and 1.1% more than the average week of the year.
Forecasts for the housing market in 2025 are not that rosy, but Ryan McKeveny and Brian Hale see this as a good thing for the years ahead. Housing inventory is key Inventory is important in making the housing market more affordable, but it’s more complicated than just building more houses, McKeveny said.
Redfin cited a number of reasons for this increase in the nations housing inventory, including: The mortgage rate lock-in effect is fading: A number of homeowners who scored low mortgage rates during the pandemic have been staying put because moving would mean taking on a higher rate. month-over-month, and 4.7% year-over-year.
TD: There will be an uptick throughout the rest of 2024 and into 2025 due to a deficit of 5-7 million homes. Ground-up construction growth will be high to meet the population growth and meet the demand due to limited inventory. HW : The fix-and-flip market continues to see strong demand despite inventory challenges.
The number of office-to-apartment (O-to-A) conversions is on the rise, and by 2025, there will be about 71,000 units planned, breaking new records. Only 3,709 of the 55,339 office-to-apartments that were in some stage of development in January of last year were finished by December, meaning that 51,630 units remained unfinished until 2025.
Auction.com has released its 2025 Distressed Market Outlook , which forecasts foreclosure auction volume decreasing 8% in 2025 as a baseline scenario. Those two scenarios have foreclosure auction volume increasing in 2025. This data provides forward-looking insight into retail housing market trends.
Earlier this year, when mortgage rates soared to 7.26%, a cloud of worry hung over the housing market many feared that home sales would tumble in 2025, fueled by concerns about inflation and tariffs. In 2025, mortgage rates have ranged between 7.26%-6.64%. However, our shorter weekly contract data lines are showing improvement.
Housing Market Supply and Demand: An analysis of housing inventory trends and construction pressures affecting pricing and availability. Department of Labor’s Unemployment Insurance Weekly Claims Report (Thursday) The post The Week Ahead: Preparing for 2025 first appeared on The MortgagePoint.
If 2024 was a rollercoaster, 2025 is shaping up to be a championship gameand every buyer , seller and homeowner has a shot at winning big. Whether youre looking to buy your first home, upgrade or simply gain clarity on the current market , this guide is your insiders playbook to tackle 2025 with confidence. The key takeaway?
The National Association of Realtors (NAR) was one of the more bullish forecasters of the 2025 housing market, but the trade group has revised its outlook. million in 2025. These are downward revisions from the forecast they released in late 2024, which predicted existing-home sales in 2025 to hit 4.9 million in sales and a 3.5%
The NAR president and Massachusetts native then took NAR members on a walk down memory lane to explain the trade group’s priorities for 2025. “In So, as I look to 2025 and where we want to go, it is to stick to the basics. We protect consumers when we educate decision-makers about issues about inventory.
Altos Research tracks every home for sale in the country every week all the active inventory and pending sales as they happen as well as prices and supply and demand metrics Lets look at this weeks data. Inventory fell There are 635,000 single-family homes unsold on the market now. In 2018, mortgage rates and inventory rose all year.
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. First thing to note is that California has very restricted inventory. Total inventory dipped because of withdrawals, not always because of purchase demand. That means 4.2
The jump in sales gives the market momentum heading into 2025, which is expected to outperform 2024. Elevated inventory has put downward pressure on prices this year, but November’s numbers foreshadow a potential tightening. million sales in 2025, a number that is close to the current rate of 4.15 While thats a 4.7%
10-year yield and mortgage rates In my 2025 forecast, I anticipate the following ranges: Mortgage rates will be between 5.75% and 7.25% The 10-year yield will fluctuate between 3.80% and 4.70% So far in 2025, we have consistently been near the upper end of the year’s forecast.
In 2025, mortgage rates have ranged between 7.26%-6.64%. However, as mortgage rates started to rise late into 2024 and have stayed elevated in 2025, that has facilitated a slight but consistent decline in pending sales year over year. With that in mind, read my labor model for 2025 after the jobs report on how you get there!
Active inventory typically decreases at this time of year, but in 2024 it did not drop below 1 million. For me, the highlight of 2024 was the growth in active inventory. That situation is not present in todays housing market as active inventory is almost 1 million, not 4 million like in 2007. Also, the monthly supply is 3.3
Unsold inventory of homes on the market has been rising for years and is already at the highest level since 2019 nationally. Total unsold inventory is up, and the weekly pace of new sellers adding to that inventory is up too. We saw this in September 2022, again in September 2023, in May 2024, and in February 2025.
However, we need lower mortgage rates to grow sales in a bigger fashion in 2025. Weekly housing inventory data As we enter the year’s final weeks, we usually see a drop in housing inventory. Weekly inventory change (Dec. 20): Inventory fell from 682,150 to 667,466 The same week last year (Dec.14-Dec.
“Inventories of existing homes for sale have improved from a year ago but remain historically low, due largely to the so-called ‘lock-in effect.’ ” Fannie Mae’s 2025 forecast suggests that its unlikely that the 2025 housing market will deviate from 2024 norms.
Weekly housing inventory data Last week saw another slight decline in active listing and soon, the holidays will kick in. The seasonal decline is well underway, and it looks like the 739,434 level will be the peak of inventory for 2024. Weekly inventory change (Nov. Weekly inventory change (Nov.
The unsold inventory of homes on the market across the country is 28% greater than last year at this time. Withdrawals keep a lid on inventory growth. That suggests a shadow inventory of homes that want to be sold but the market isnt there for it. Are there any signs of sales growing for 2025? Something to watch.
The difference is mortgage rates: even with inventory growing at a healthy clip this year, mortgage rates just heading down toward 6% for a brief period of time resulted in higher prices in a seasonally soft period. This is something to think about for 2025. However, that didn’t happen. million in October.
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