Particle.news
Download on the App Store
4 ARTICLES
·
2d ago

U.S. Housing Market Swings in Buyers’ Favor as Listings Soar to Record $698 Billion

High mortgage rates near 7 percent have broken the rate lock-in effect, unleashing a flood of listings that is pressuring sellers to negotiate lower asking prices.

People walk through a neighborhood with row houses on a spring day on May 24, 2025, in Washington, DC.
Image
Data: Redfin; Note: Number of buyers based on Redfin analysis of pending home sales, MLS listings and other data; Sellers number is amount of homes listed for sale on the MLS.; Chart: Axios Visuals

Overview

  • Active home sellers outnumbered buyers by nearly 490,000 in April, the widest gap on record since Redfin began tracking in 2013.
  • Inventory climbed to 1,965,532 homes for sale in April, up 16.3 percent year-over-year, with the total dollar value hitting an unprecedented $698 billion.
  • Elevated borrowing costs have dampened transactions, driving April home sales down 3.1 percent year-over-year and leading 19.9 percent of sales to involve price reductions.
  • The easing of the mortgage rate lock-in effect has freed more homeowners to list properties, but subdued demand has shifted bargaining power to buyers.
  • Redfin forecasts a modest 1 percent decline in national home prices by the end of 2025 as growing supply and persistent affordability challenges weigh on values.