The U.S. housing market in 2025 is showing early signs of shifting compared to 2024, despite persisting challenges such as elevated mortgage rates and limited inventory. Recent data reveals a modest uptick in new listings, especially in March 2025, which saw a 15.5% increase year-over-year. While homebuyers remain cautious, partly due to interest rates hovering around 7%, the surge in listings could indicate a loosening of the tight supply that characterized the 2024 market. However, median home prices continue rising, driven by demand outstripping supply in many regions.
Home sales are also seeing slight improvements, with closed sales in early 2025 beginning to outpace those from the same time last year. Analysts remain cautiously optimistic, noting that any sustained recovery will likely depend on mortgage rate trends and broader economic stability. If rates begin to decline in the latter half of the year, experts suggest the housing market could see increased activity despite affordability concerns.
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