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Home Sales Are Slow Now—But Hopes for Spring Are Blossoming
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Key Points
- Recent housing data suggest a slow start to 2025, but recent interest rate increases have left some economists cautiously optimistic about the critical spring sales season.
- Mortgage rates have been down for seven weeks in a row, encouraging more potential homebuyers to stroll around.
- Rising inventory levels may help build a housing market during which the usual busiest home sales season is.
While home sales start to slow in 2025, some economists and real estate professionals see hope for a busy spring home buying season.
The national index of home sales for real estate agents to wait for the day fell 4.6% in January to reach an all-time low. Home Affordability issues persist Mortgage rates continue to rise as the cost of homes continues to exceed income levels. However, this may change in the spring, which is usually one of the best times to sell a home, according to Realtor.com.
“I think the spring market is an opportunity for a new momentum as the number of buyers is waiting for the market,” said Jr., vice president of the Nation One Mortgage Corporation Southeast Division.
Mortgage rates, inventory moves in the right direction
Economists say the decline in mortgage interest rates is one of the reasons for optimism. Freddie Mac said the average interest rate on fixed mortgages in 30 years fell to 6.63% this week. It was the lowest since mid-December and the seventh consecutive decline.
Other factors point to potential pickups for home sales. especially, Higher inventoryoffers more options for browsing indoor shoppers to consider this year.
“As we approach the spring home buying season, this stability still bodes well for potential buyers and sellers,” said Sam Khater, chief economist at Freddie Mac.
Population trends may drive seasons
Entering the spring 2025 household sales season, some demographic trends may also help stimulate the housing market. Recent housing data suggest Home buyers are getting olderincluding first-time owners, who accounted for a record buyer share in 2024.
“Millennials have reached the peak age of marriage and children, both of which are catalysts for home purchases. In addition, more and more baby boomers retire every day. Retirement has led to changes in lifestyles and lifestyles, which also correspond to changes in where and how people live,” said Ali Wolf, chief economist at Zonda, a real estate data company.
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