US housing market eyes end-of-year rebound after sluggish summer
Summer is generally regarded as a slower period for home sales, and given 2025’s homebuyer vs. seller trends, this summer is shaping up to be one of the worst for those looking to offload their property. According to a report published Thursday on Realtor.com, the end of August saw both a slowdown in sales and a plateau in home prices.
Homebuyers vs. sellers
“Affordability constraints are keeping buyers on the sidelines this summer, leading to frustration among sellers and home builders who remain unable to sell homes at the prices and in the amount of time they had hoped for,” said Joel Berner, a senior economist at Realtor.com.
The housing landscape largely mirrors predictions and trends forecasted earlier this year by home-buying and selling platform, Redfin. In May, Redfin reported that there were nearly 500,000 more sellers than buyers –– the largest ever differential according to records dating back to 2013.
This is down to three main reasons: too many buyers are still priced out of the market, economic uncertainty surrounding tariffs is influencing buyers’ decisions, and pandemic-era mortgage rates are beginning to wane.
“The balance of power in the U.S. housing market has shifted toward buyers, but a lot of sellers have yet to see or accept the writing on the wall. Many are still holding out hope that their home is the exception and will fetch top dollar,” said Redfin Senior Economist Asad Khan. “But as sellers see their homes sit longer on the market and notice fewer buyers coming through on tour, more of them will realize that the market has adjusted and reset their expectations accordingly.”
A ‘perfect’ storm for the end of the year
Adding insult to injury, a record number of homebuyers are canceling their purchase agreements, also largely due to higher home prices, higher mortgage rates and economic uncertainty.
Incidentally, all of these factors could be contributing to a proverbial perfect storm –– emphasis on “perfect” –– that ushers in a new era for the housing market.
For instance, mortgage rates are decreasing, which might encourage more buyers to re-enter the market. The Fed is expected to announce a rate cut in mid-September.
Chen Zhao, head of economics research at Redfin, said we are already seeing those decreased rates.
“The Fed is widely expected to cut their policy rate on Sept. 17th when they meet,” Zhao told Straight Arrow News earlier this week. “That rate cut has largely been priced in already. So that means that when they make that cut, mortgage rates won’t fall any further. Unless if they signal, you know, faster or more rate cuts in the future compared to what markets have priced in.”
At the same time, fewer homes are for sale, which could put pressure on buyers to act quickly before options run out.
According to Realtor.com, there were 0.7% more new home listings last week, compared to this time last year. Likewise, more prospective home sellers are pulling their listings, opting to wait for a healthier market rather than lowering their asking price.
“The best time of year to buy a home, usually in early-to-mid-October, is on the horizon, but buyers may be seeing more homes that have sat on the market all summer than freshly listed ones as this prime buying period approaches,” Berner said.
The post US housing market eyes end-of-year rebound after sluggish summer appeared first on Straight Arrow News.
Ella Rae Greene, Editor In Chief
