WSJ Your Money Briefing Why the Spring Home Buying Season Is Shaping Up to Be a Disappointment
19 snips
May 23, 2025 
Nicole Friedman, a Wall Street Journal reporter specializing in real estate, joins to discuss the disappointing spring housing market. She explains how high mortgage rates and economic instability have sidelined potential buyers, leading to a significant drop in existing home sales. The conversation delves into regional housing trends, highlighting stark differences between areas like the Northeast and Midwest versus the South and Southwest. They also touch on the implications for the 2025 market as affordability issues continue to challenge both buyers and sellers.
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Falling Home Sales Signal Slow Market
- The number of existing home sales is a key indicator of the market's health.
- Sales have dropped to 4 million annually from pre-pandemic norms of 5 to 5.5 million and pandemic highs of 6 million.
Spring Market Slow Despite More Inventory
- Spring 2025 home sales started slow with declines in March and April.
- Increasing inventory hasn't sparked sales growth due to mortgage rates and affordability barriers.
Affordability Blocks Market Activity
- Affordability is the biggest obstacle for buyers, driven by high home prices and doubled mortgage rates.
- Sellers hesitate to move because they want to keep low mortgage rates rather than face higher rates on a new home.