Housing Market Trends 2025: Are Buyers Finally Gaining the Upper Hand? Prices & Insights
Explore how the 2025 housing market is evolving, with falling home sales and rising inventory creating new opportunities for buyers amid record-high prices.
The housing market in 2024 is showing signs of a significant shift, potentially favoring buyers after months of high prices and dwindling sales.
Key Insights
- Existing home sales declined for the fourth consecutive month in June 2024.
- Buyer activity slowed as prices reached new all-time highs.
- Increased home listings suggest sellers may be losing their previous market advantage.
June 2024 saw prospective buyers step back from the market due to steep prices, yet emerging trends hint at a buyer-friendly environment ahead.
Data from the National Association of Realtors (NAR) reveals a 5.4% drop in existing home sales compared to both May 2024 and June 2023. This dip was sharper than economists anticipated, coinciding with record-breaking home prices for the second consecutive month.
Robert Frick, corporate economist at Navy Federal Credit Union, warns that sales levels are nearing those seen during the housing bubble crash, signaling challenges for hopeful homeowners amid rising costs.
Despite these challenges, buyer prospects are improving as inventory levels increase.
Inventory Growth Eases Price Pressure
June 2024 inventory reached 1.32 million units, spanning single-family homes, townhouses, condos, and co-ops—a 3.1% rise from May and over 23% higher than last year. This shift marks a considerable easing of the competitive market conditions buyers faced in 2023.
NAR Chief Economist Lawrence Yun notes, "We are witnessing a gradual transition from a sellers’ market towards a buyers’ market. Homes are staying listed longer, and sellers are receiving fewer offers."
High interest rates had previously discouraged many sellers from listing, intensifying competition and inflating prices. However, the recent surge in listings may rebalance this dynamic.
Buyers’ resistance to high prices has resulted in accumulated inventory at its highest since May 2020, prompting many sellers to lower asking prices.
Doug Duncan, Fannie Mae’s chief economist, states, "Although listings are up, sales have not yet increased. We anticipate home price growth will slow down nationally but remain positive in the near term."
For up-to-date housing market news and tips, contact ZAMONA reporters at tips@ZAMONA.
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