With 690,000 Unsold Homes, Experts Predict 'Slight Growth' In 2025 – Is Now The Time to Buy?

America’s housing market is approaching 2025 with mounting inventory and modest growth expectations. According to new data from Housing Wire, unsold single-family homes reached 690,000 nationwide – a 26% increase from last year but still 17% below pre-pandemic levels.

Weekly pending home sales hover around 51,000, showing about a 10% improvement over December 2023. The median price for single-family homes is $384,900, reflecting a 5% annual increase despite higher interest rates and growing inventory.

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Postelection market activity suggests some buyers are emerging from the sidelines, though experts anticipate steady rather than explosive growth. New listings have increased 8%-10% weekly compared to last year, with similar growth expected through 2025.

Price reductions affect 38.4% of listed homes, indicating persistent affordability challenges. However, the rate of price cuts has stabilized in recent months, suggesting market equilibrium rather than a widespread correction.

The market’s current stability runs counter to initial 2024 predictions of a severe downturn. Weekly mortgage application data shows unexpected strength, while national pending sales volumes demonstrate resilience despite elevated rates. The shift from frenzied pandemic-era buying to today’s measured pace indicates a maturing market cycle.

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“After the new year, fresh new inventory gets listed, so the percent of homes with price cuts falls,” Housing Wire reports, noting the seasonal pattern remains consistent even amid broader market changes.

That predictability may offer some comfort to both buyers and sellers.

Regional variations tell different stories, though. Northern cities maintain tight inventory and rising prices, while Sunbelt markets face their highest inventory levels in years. Florida and Texas particularly see increased listings driven by rising insurance costs, property taxes, and climate risk concerns.

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The current market represents a shift from the pandemic boom that peaked in early 2022. While inventory growth primarily stems from weaker demand rather than distressed selling, the slight increase in weekly new listings points toward healthier market conditions.

Housing Wire’s analysis suggests next year's home prices will appreciate more modestly than 2024’s 5% gain, projecting 3.5% growth. The forecast reflects a market transitioning from post-pandemic recovery to more traditional patterns, though still constrained by historically low inventory compared to 2019’s 850,000 available homes.

The gradual inventory rebuild departs from the previous decade’s pattern of declining available homes when persistently low interest rates encouraged property hoarding. Today’s market dynamics suggest a slow return to balance rather than dramatic shifts in either direction.

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