06/19/2025
The US housing market is experiencing a significant gap. In April, there were nearly half a million more sellers than buyers, the largest gap since 2013, as reported by Redfin. This shift has given buyers more leverage, leading to price cuts and sellers concessions.
Despite rising inventory, driven by life events and economic concerns, existing home sales fell for the second month, reaching the slowest pace for April since 2009.
High home prices, climbing more than 50% over five years, and mortgage rates above 6.5% continue to price many buyers out. National home prices rose 1.4% year-over-year in May, slowing from April’s 2% growth. Prices fell in 24 of the 100 largest metro areas, mainly in the Sunbelt.
Regionally, the Southeast and Southwest are strong buyers’ markets, while some areas in the Northeast and Midwest still favor sellers.
Although new home construction is increasing and some homeowners must sell due to personal circumstances, the market is still slow, with many buyers waiting for further price drops.
Mortgage applications rose 20% year-over-year in early June, suggesting some buyer optimism. 26% of consumers think it’s a good time to buy, up from 23% the previous month.
