What the Latest Data Says About Housing Demand in 2025

In 2025, the housing market is experiencing a complex interplay of factors influencing demand. Here's an overview of the latest data and trends:

Buyer Demand Remains Subdued

• Pending Home Sales Decline: In April 2025, pending home sales decreased by 3.2% year-over-year, indicating a slowdown in buyer activity. realtor.com

• Mortgage Rate Impact: Elevated mortgage rates, hovering around 6.65% in March, have contributed to reduced affordability, deterring potential buyers. zillow.com

Inventory Levels Rise

• Increase in Listings: The inventory of homes for sale rose by 30.6% year-over-year in April, marking the 18th consecutive month of inventory growth. realtor.com+1businessinsider.com+1

• Sellers Outnumber Buyers: For the first time since 2013, home sellers significantly outnumber buyers, with nearly 500,000 more homes for sale than buyers as of April 2025. nypost.com

Home Prices Stabilize

• Moderate Price Growth: The national median list price was $431,250 in April, largely unchanged from the previous year, while the price per square foot saw a modest 1.1% increase. realtor.com

• Price Reductions Increase: Approximately 18% of listings saw price reductions in April, the highest share for any April since at least 2016, reflecting mounting affordability pressures. realtor.com

Market Outlook

• Affordability Challenges Persist: Despite increased inventory, high mortgage rates and home prices continue to challenge affordability, keeping some potential buyers on the sidelines.

• Potential for Demand Rebound: Should mortgage rates decrease, as some forecasts suggest, buyer demand may experience a resurgence later in the year. 

Bottom Line: The housing market in 2025 is characterized by increased inventory and stabilized prices, but buyer demand remains tempered due to affordability concerns. Monitoring mortgage rate trends will be crucial in anticipating shifts in buyer activity.