Current Market Snapshot & Outlook

1. Mortgage Rates & Affordability

• Mortgage rates remain stubbornly high—averaging in the upper 6% range—continuing to limit demand and affordability.

• Forecasts suggest only a gradual easing in the back half of the year, with rates still likely above 6% through year-end.

2. Home Price Trends

• Growth in home prices is slowing, with projections showing a modest 2–3% increase across 2025.

• As one analyst put it, the market remains “stuck in neutral” and currently shows little sign of a sharp decline.

3. Inventory & Buyer Activity

• Inventory remains tight, though there are signs of improvement—helping shift the balance slightly toward buyers.

• Fall typically brings motivated sellers, price cuts, and less competition among buyers—making it a potential “sweet spot” for purchasing.

4. Regional Standouts

• North Texas is particularly strong, with five cities ranking among the top 10 U.S. real estate markets.

• Houston is witnessing a drop in apartment construction (down 37.6%), potentially tightening rental supply and pushing rents up.

5. Commercial Real Estate & REITs

• Overall commercial real estate is beginning to recover, especially in retail, industrial, and data centers. The office sector remains challenged, especially in non-prime locations.

• Some REITs and housing-linked sectors are showing resilience amid broader market stagnation.

6. Policy Developments

• The Trump administration has suggested declaring a national housing emergency this fall to address high costs and supply constraints—potentially streamlining development and permitting.

If you're considering entering the market—whether as a buyer, seller, or investor—the fall of 2025 is shaping up to be balanced rather than extreme:

• Buyers may benefit from motivated sellers and easing price growth, especially in markets with increased inventory.

• Sellers can still find opportunities in tight-supply areas, particularly if pricing and staging are strategic.

• Investors may find better prospects in retail, industrial, and select multifamily sectors, with potential policy tailwinds on the way.

Matt Witte strives to be the best realtor in North Andover MA.

Any questions about real estate, reach out to Matt Witte, North Andover Realtor, MA