Home prices average about a 4.25 percent increase per year, if you look at data going back to 1967. That means, historically speaking, any given home should expect to gain somewhere between 4 and 5 percent in value each year. More recently, though, prices have been increasing faster than that. In fact, the average annual increase since 2012 is more than 7 percent and, in the years since the pandemic, it climbed closer to 9 percent – with some areas seeing double-digit year-over-year increases. Mostly, that’s due to the inventory of homes for sale, which remained lower than normal for much of the past decade. Things, however, are changing. Inventory has rebounded significantly and, according to Fannie Mae’s Q2 2025 Home Price Expectations Survey – which collects the price forecasts of more than 100 housing experts, slower growth is on the horizon. The panel says, after gaining 5.3 percent year-over-year in 2024, home prices are expected to increase 2.9 percent this year and an additional 2.8 percent in 2026. (source)

Summer’s here and the news is good for potential home shoppers. Conditions have improved and put buyers in better shape than they’ve been in a while. How so? Well, for starters, mortgage rates are lower than they were last year at this time, the number of homes available for sale has increased, and home sellers are cutting prices at record rates. Also, buyer competition was at its lowest level for any May dating back to 2018 this year and homes for sale are selling only two days quicker than they were pre-pandemic. In other words, potential home buyers who may be hesitant about the market may want to take a second look. In fact, according to one new analysis, the national housing market is now balanced, meaning it favors neither home buyers or sellers. That’s the first time in several years that the market hasn’t been strongly in home seller’s favor, which should be great news for buyers. (source)

The post-pandemic housing market has been remarkably stable. The number of foreclosures and seriously underwater mortgages has remained low. According to ATTOM Data Solutions’ latest Special Housing Risk Report, that stability continued during the first quarter of this year. The report looked at where the healthiest and most at-risk housing markets are across the country using county-level data, including the percentage of homes facing foreclosure, the portion of seriously underwater mortgages, the percentage of average local wages required to pay homeownership expenses on a median-priced home, and local unemployment rates. Rob Barber, ATTOM’s CEO, says the results show how individual markets are performing. “There’s no unequivocal metric that can tell you where it’s safe to buy and where it’s risky,†Barber said. “But taken together these data points show how different parts of the country are performing†What it found was the most at-risk housing markets are located in just a few regions, with California and New Jersey accounting for 23 of the 50 riskiest markets. The South, on the other hand, was home to the strongest markets, with 27 of the 50 least at-risk markets. (source)

Home buyers have preferences when it comes to the architectural style of the house they buy, but most will choose function over design when it comes time to make an offer. After all, it’s better to have a home with a great kitchen and ample storage than to have the perfect example of an American Craftsman but nowhere to put your stuff. There’s also the problem of availability. Some home styles are more common than others. In fact, according to a new report from the National Association of Realtors’ consumer website, half of all homes listed in May were Colonial/American Traditional. Ranches were the next most common architectural style at 34.1 percent of listings. Together, the two make up nearly 85 percent of all available homes. Hannah Jones, the website’s senior economic research analyst, says architecture is about more than just the look of the home. “Architecture isn’t just about aesthetics, it often reflects where and when a home was built, and what buyers prioritized,†Jones said. “This report highlights the rich diversity of American housing styles and helps consumers understand how design trends intersect with affordability and demand.†(source)

According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates remained elevated last week, with little movement seen for 30-year fixed-rate loans with both conforming and jumbo balances. Rates for loans backed by the Federal Housing Administration and 15-year fixed-rate loans saw declines. But while mortgage rates saw little change week-over-week, demand for loan applications surged. Refinance activity was up 16 percent and demand for loans to buy homes increased 10 percent from the week before. Joel Kan, MBA’s vice president and deputy chief economist, says home buyers are taking advantage of the increased inventory of homes for sale. “Coming out of the Memorial Day holiday, mortgage applications increased to the highest level in over a month, driven by growth in both purchase and refinance applications,†Kan said. “Purchase applications were 20 percent ahead of last year’s pace, continuing to show strength compared to a year ago. Despite ongoing uncertainty surrounding the economy, home buyers seem to be taking advantage of loosening housing inventory in certain markets.†The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Real estate investing reached a peak in 2022. That year, 13.3 percent of purchased homes were bought by investors. That’s a relatively small percentage but enough to compete with entry-level home buyers also in the market for affordably priced homes. Fortunately for today’s home buyer, that dynamic appears to be changing. Danielle Hale, chief economist for the National Association of Realtors’ consumer website, says an analysis of last year’s data shows, these days, investors are selling. “Investor trends signal a transition,†Hale says. “Nationwide, investors picked up more homes on net in 2024, as smaller investors were a growing majority of investor buyers. But with investor selling at a new high, the market saw the smallest net investor buying activity in five years, lessening one of the notable headwinds for entry-level buyers who often compete with investors.†In other words, the number of real-estate investors selling homes reached an all-time high last year, which helps counteract the number of homes investors purchased. As the gap between the two narrows, the impact of real estate investing on home buyers lessens, providing more opportunities for first-time and entry level buyers. (source)

The past few years have been challenging for home buyers. Rising mortgage rates and higher home prices have worsened affordability conditions and made potential home buyers increasingly hesitant about purchasing a home. In fact, according to Fannie Mae’s monthly Home Purchase Sentiment Index – which gauges Americans’ perception of the housing market and overall economy – a majority of Americans still feel cautious about entering the market, with most saying they don’t think this is a good time to buy. But while many remain hesitant, a growing number say they feel the time is right. For example, Fannie Mae’s index found a 7 percent month-over-month increase in the share of Americans who say they think now’s a good time to buy a home. Similarly, the share who say they’d buy, rather than rent, if they were ready to move was also up, climbing 3 percent from the previous month. What’s behind the increase? Well, it could just be the usual spring bump in buyer demand. It could also be that slower price increases, more inventory, and less buyer competition has more Americans feeling like this spring might be the right time to buy. (source)

The luxury home market is generally defined as the top 5-percent of the most valuable homes in any given region. The range includes homes priced just under $850,000 in Buffalo to homes costing almost $6 million in San Jose. The luxury home market, like the overall housing market, has slowed recently, with overall activity dropping due to economic uncertainty, elevated costs, and higher mortgage rates. But while activity is down, home prices have continued to increase. In fact, according to one new analysis, the luxury market is seeing home price increases nearly double those of the overall market. The data shows luxury home values up 2.7 percent from last year, while the broader market increased only 1.4 percent. But while luxury homes are seeing values grow at a faster pace, regional results still mirror those of the overall housing market, with midwestern cities seeing the fastest growth and southern cities seeing the slowest. The hottest luxury home markets are now in Cincinnati, Columbus, Chicago, Cleveland, and Las Vegas. Nationally, the typical luxury home is worth about $1.8 million. (source)

Mortgage payments grew slightly more expensive due to an early spring rate bump, according to new data from the Mortgage Bankers Association. The group’s monthly Purchase Applications Payment Index tracks the median monthly mortgage payment based on home buyer loan applications. In April, the typical monthly payment increased from $2,173 to $2,186 due to rising mortgage rates during the month. Edward Seiler, MBA’s associate vice president, Housing Economics, and executive director, Research Institute for Housing America, says there’s a silver lining in the numbers. “Economic uncertainty and high mortgage rates continue to weigh on prospective buyers’ decisions on whether to enter the housing market,†Seiler said. “Even with the increase in mortgage rates over the month, the median purchase application loan amount decreased slightly to $328,932, indicating that home prices are moderating. Slower home-price growth, and the overall trend of more inventory, are positives for housing this summer.†(source)