New projections from Realtor.com's Housing Forecast Midyear Update suggest that home sales in 2025 may drop to their lowest level in 30 years. While more homes are becoming available, especially in the South and West, affordability challenges are keeping buyers on the sidelines.
Key Forecast Highlights:
- Mortgage rates are expected to average 6.7 percent in 2025, slightly above earlier estimates.
- Home sales volume is projected to fall 1.5 percent to just 4 million, the lowest level since 1995.
- Home prices are expected to rise by 2.5 percent, with no national correction anticipated.
- Delistings rose 47 percent in May, indicating that many sellers prefer to wait rather than reduce prices.
- Single-family housing starts are projected to decline by 3.7 percent.
- The national homeownership rate is expected to fall to 65.2 percent.
Danielle Hale, chief economist at Realtor.com, explains that even with more inventory, elevated mortgage rates and record-high prices have kept demand lower than expected. In regions like the Northeast and Midwest, where inventory is tighter, buyer activity has remained more stable.
The typical age of first-time homebuyers has climbed to 38 years old, the highest on record, as more people delay purchasing due to affordability constraints. However, the rental market is seeing some relief, with asking rents projected to fall slightly again in 2025.
For those in Colorado Springs, understanding how these national shifts intersect with local market trends is essential. Whether you are buying, selling, or planning ahead, strategy and timing are more important than ever.
Read the full article here: Home Sales May Fall to New 30-Year Low in 2025
