July 25, 2025

Overview:

Reports and articles referenced:

Housing data for download:

VIDEO TRANSCRIPT:

  • I’m Hannah Jones, Senior Economic Research Analyst at Realtor.com®. This week, I’ll break down the latest data on existing and new home sales and what it means for the housing market. Next, I’ll get into our revised expectations for the year from the Realtor.com Housing Forecast Midyear Update. I’ll also cover this week’s mortgage rates and highlight the latest housing trends that give insight to buyer and seller behavior. Zooming out, I’ll explore why solving the housing crisis will require more than just releasing federal land for development. Finally, I’ll take a look at the latest Housing Market Ranking produced in collaboration with the Wall Street Journal, including a special look at the top luxury markets. 
  • Existing home sales declined on a monthly basis in June, while new home sales remained essentially flat, as affordability challenges and broader economic uncertainty continued to weigh on the market. 
  • Despite the sales slowdown, existing home prices reached a new record high in June. In contrast, new home prices declined both month-over-month and year-over-year, signaling continued adjustments from builders in response to today’s shifting market dynamics.
  • These trends align with our Midyear Housing Forecast Update. We expect existing home sales to decline 1.5% this year, totaling just 4 million, while prices rise 2.5% year-over-year. Mortgage rates are also projected to ease in the second half of the year, though they will likely finish higher than initially anticipated.
  • Mortgage rates moved roughly sideways this week, edging down just 1 basis point. Since October, rates have hovered in the high-6% range, continuing to dampen buyer activity even as inventory levels rise.
  • In the Realtor.com Weekly Housing Trends report, we see mixed performance. Price growth and new listing activity picked up, while active listing growth slowed and time on market eased further. Buyers continue to see more for-sale inventory than last year, but stubbornly high prices are limiting demand.
  • While inventory levels have improved significantly, the U.S. housing market still faces a shortfall of nearly 4 million homes. Recent enthusiasm around selling federally owned land for development has sparked hope, but a key challenge remains: much of this land is not located where housing demand is highest, limiting its potential to meaningfully close the gap.
  • The Summer 2025 Housing Market Ranking, produced in collaboration with The Wall Street Journal, highlights markets that are not only competitive but also offer relative affordability and appealing quality-of-life amenities. This quarter, Manchester-Nashua claimed the top spot on the list.
  • The Luxury edition of the Housing Market Ranking shines a spotlight on markets like St. Louis and Santa Fe, where buyer demand remains elevated, and with good reason. These areas offer a compelling blend of upscale amenities, regional charm, and lifestyle appeal, all while maintaining relative value compared to traditional luxury hubs.
  • You can find all the details, including full reports and our housing data for download, at realtor.com/research.  You can also follow us on X (formerly twitter) for real time updates. And instagram for graphics. 

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