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3mo ago

US Housing Market Shifts Further Toward Buyers as Supply Growth Slows

Elevated mortgage rates have sidelined buyers, prompting sellers to trim prices nationwide.

In this aerial view, completed and under construction new homes at a site in Trappe, Maryland, on October 28, 2022.
In a combination photo, single-family homes for sale in Austin, Texas, May 29, 2025. Economists predicted that the United States would break free of its long-running housing slump in 2025. But the opposite happened. (Montinique Monroe/The New York Times)
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US Housing Market: Will Prices Come Down

Overview

  • US housing inventory reached 2,058,065 homes for sale in May, a 14.1% increase from last year; growth in new listings slowed to 7.2%.
  • There are 500,000 more sellers than buyers in the market, giving buyers greater leverage in negotiations.
  • The average 30-year fixed mortgage rate stood at 6.84% in mid-June and is unlikely to drop substantially in the near term.
  • Sellers have responded to weaker demand with price reductions, particularly in the South and West, where markets like Phoenix, Tampa, Denver and Austin led the country in cuts.
  • Home price forecasts project a modest 1% nationwide decline by the end of 2025 as inventory remains elevated and buyer demand stays muted.