Top of Mind 2025 could be the last year of inventory shortage (2/24/25 Market Update)
Feb 25, 2025
Get ready for a deep dive into the U.S. housing market as experts analyze the latest trends. Home prices are showing signs of slowing growth, which could change the game for buyers and sellers alike. Inventory levels are critical, with predictions suggesting 2025 might be a turning point. The dynamics between supply and demand are shifting, driven by economic conditions and interest rates. Stay tuned for insights that could help you navigate the evolving landscape of real estate.
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Home Price Paradox
- Home prices are climbing despite higher interest rates due to restricted inventory.
- If current trends continue, the inventory shortage may disappear by next spring, potentially leading to price drops.
Inventory Growth and Regional Differences
- U.S. inventory grew by 28.7% year over year, yet it's still below normal levels.
- Texas and Florida show higher mortgage rate sensitivity compared to steadier growth in California.
Inventory Trends and Market Phases
- Inventory is expected to reach 2018 levels by next spring if rates stay high.
- The market went through distinct phases: falling rates, pandemic supercharge, and rising rates/inventory.