An in-depth analysis of national housing market

An in-depth analysis of national housing market

Boston Condos for Sale and Apartments for Rent

An in-depth analysis of national housing market

The K-Shaped Economy Is Reshaping Housing Demand

Higher mortgage rates and growing household wealth are pulling the housing market in opposite directions.

While affordability challenges are slowing some buyers, strong stock market gains and rising net worth are helping keep demand resilient. Pending home sales averaged roughly 6% above last year’s pace, with approximately 91,000 homes going under contract this week, up 9% year over year.

The data suggests the wealth effect is helping offset the impact of mortgage rates that have climbed back to roughly 6.6%. Inventory remains historically tight, with just over 1 million homes on the market nationwide and supply still below pre-pandemic norms.

Meanwhile, home prices remain largely flat, though higher-end markets continue to outperform as affluent buyers remain active.

The key question this summer: Will rising mortgage rates slow demand, or will the wealth effect continue to support home sales? So far, demand is winning.

Click- Menu of listing options for Boston condo sellers

An in-depth analysis of national housing market

We’re six weeks into the new year and the spring market is taking shape for 2026

Home buyer demand is responding to cheaper mortgage rates. Pending sales are inching higher and the growth rate of inventory is slowing way down. If you’re in the group expecting a surge of supply, watch the data closely. The inventory gap from 2025 is closing every day. From 30% growth in 2025 to just 8.7% now.

The data this week:

• 688,000 single family homes on the market, only 8.7% more than last year
• Weekly pending sales averaging 3.5% more than 2025, though this week dipped with the deep freeze
• Price reductions at 32.4%, down 90 basis points from last year and falling when last year it was rising
• 75,000 re-listed homes from last fall now back on the market
• Median pending price $388,475, barely 1% higher than a year ago
• Asking price per square foot 1.7% lower than last year

Here’s what I’m watching: the price reductions data is a powerful leading indicator. Right now fewer sellers are cutting prices compared to last year. That tells us demand is improving where last year it was deteriorating. If this line dips below 30%, that signals sufficient demand for sellers to hold firmer on pricing.

But we’re not there yet. Buyers are still in the driver’s seat in most of the country.

Home prices still have negative momentum. Mildly improving demand isn’t enough yet to change that pattern. There are early leading indicators suggesting prices aren’t in for a big drop, but demand hasn’t picked up enough to really move the needle.

If the inventory deceleration continues, by summer we could be looking at inventory declines compared to last year. Rising rates create rising inventory. Falling rates, falling inventory. That’s what’s underway.

This is a very different market from a year ago

An in-depth analysis of national housing market

The business of real estate is always changing.

There are a lot of moving parts that influence the real estate industry. Whether you’re a buyer, seller, renter, or agent, fluctuations in the market can have a big impact on your business or lifestyle.

With a number of external factors, like economic conditions, affecting the real estate industry, learning more about real estate statistics will help you understand the property landscape and make better buyer decisions.

An in-depth analysis of national housing market

There’s good news in the housing market to close out 2024: There’s a lot more supply. The bad news: A lot of that supply is stale, sitting unsold for much longer than usual. 

Active listings in November were 12.1% higher than they were in November 2023 and hit the highest level since 2020, according to a new report from Redfin.

The typical home that did go under contract did so in 43 days, according to Redfin, the slowest November pace since 2019.

“A lot of listings on the market are either stale or uninhabitable. There’s a lot of inventory, but it doesn’t feel like enough,” said Redfin agent Meme Loggins, who was quoted in the report. “I explain to sellers that their house will sit on the market if it’s not fairly priced. Homes that are priced well and in good condition are flying off the market in three to five days, but homes that are overpriced can sit for over three months.”

An in-depth analysis of national housing market

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in the interview below discuss the state of the real estate market are the topics in this interview. The most interesting was her graph above that shows how much quicker sales have declined this year, compared to the last downturn.

She is expecting -12% in national pricing, and -20% in sales next year.

The State of The Real Estate market