JULY 10, 2025, EDITION

Sales of pre-owned homes rose in May, and the National Association of Realtors says that in the second half of the year, home sales could “increase due to strong income growth, healthy inventory, and a record-high number of jobs.”

Their Pending Home Sales index of signed contracts on pre-owned homes gained almost 2% in May, which they feel is evidence that buyers are showing up, as “hourly wages are increasing faster than home prices.”

Sales of new homes in May didn’t fare as well, down more than 13%. But median new home sales prices are down 7.3% from their 2022 peak, and the supply of completed single-family homes is up 280% from their 2022 bottom.

Spending on residential construction slowed a trifle in May, compared to the upwardly revised estimate for the month before. Homebuilders are curtailing spending as they focus on completions to meet growing buyer demand.

The Mortgage Bankers Association reported applications for mortgages are gaining momentum, up for the second week in a row. They noted, “purchase activity still remains 16% higher than last year’s pace.”

Realtor.com believes that “with inventory on the rise and more than 1 in 5 sellers cutting prices, the market is tilting back toward balance, marked by slowing price growth and increasing buyer leverage.” 

DID YOU KNOW?… In fact, the closely watched Case-Shiller index reported the growth in home prices slowed in April, to an annual rate of just 2.7%.

In Freddie Mac’s weekly survey, the national average 30-year fixed mortgage rate fell again, staying below its level a year ago. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information. 

Nearly 3 in 10 homebuyers are looking for a multi-generational home—one they’ll share with parents, adult children, or extended family. That’s the highest share ever recorded, and the main reason now for purchasing a multigenerational home isn’t caregiving—it’s cost savings. Maybe that solution makes sense for you too!

If you’re holding off listing because you think fewer buyers are out there, remember there are always people who need to move because of a new marriage, child, job, or the need to be closer to family. The forecast is for 4.03 million homes (not including new builds) to sell this year—that’s about 8 pre-owned home sales every minute!