The latest analysis from News Corporation's Realtor.com® forecasts a challenging housing market in 2025, with home sales expected to remain subdued due to persistent affordability issues and higher-than-anticipated mortgage rates. Despite an increase in homes on the market, buyer response has been muted, particularly in the South and West, where inventory gains are more substantial. The Northeast and Midwest continue to exhibit tighter market conditions with steadier buyer activity. The market is shifting towards a more balanced state, with months' supply reaching a post-2016 milestone of 4.6 months, creating opportunities for buyers. However, delistings have increased by 47% over the past year, indicating some sellers' reluctance to meet current market conditions. This trend could disrupt the emerging buyer-friendly momentum. Meanwhile, renting remains an attractive option as rents have decreased by 2.1%. Home sales prices are anticipated to grow by an average of 2.5% nationwide in 2025, a deceleration from previous years. Sellers are adjusting to these dynamics, with over 20% of listings experiencing price reductions as inventory rises and market times lengthen.
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