Finally More Homes For Sale, but is a Price Dip Coming?
The 2025 housing market is shifting, but it’s not a repeat of past crashes. Home inventory is climbing—up nearly 27% from last year—and it’s expected to grow another 15% by the end of the year. Normally, when more homes hit the market, prices start to drop. But this time, other factors are keeping prices from falling too fast.
One big issue is mortgage rates, which are still high, sitting above 7%. That makes buying a home more expensive, cooling demand and leaving homes on the market about 20% longer than they were a year ago. But even with demand slowing, prices aren’t dropping much. Some areas, especially in the South, are seeing small declines, but overall, prices remain steady.
What happens next depends on mortgage rates. If they stay high, demand could weaken further, forcing sellers to lower prices. But if rates drop, more buyers will jump back in, keeping prices stable or even pushing them up.
Bottom line: More homes are available, but unless mortgage rates drop, don’t expect a dramatic price crash—just a gradual shift in favor of buyers.
Source Inspiration: HousingWire