The U.S. housing market is facing unprecedented turbulence, as the latest data reveals a startling 16.2% of home purchase deals were canceled last month. This marks the highest cancellation rate in history and highlights the growing challenges in today’s market.
A significant number of sellers are slashing home prices to attract buyers. According to Mike Simonsen, founder of real estate analytics firm Altos, 33.5% of homes listed for sale have seen price reductions. This is a clear sign of the affordability crisis, with high prices and mortgage rates deterring potential buyers.
Buffalo, New York, has been identified as the “hottest” real estate market for 2025, thanks to its relatively affordable home values and robust job growth. Despite its resilience, Buffalo is not immune to the broader national trends.
The National Association of Home Builders recently reported a slight increase in homebuilder confidence, with the Housing Market Index reaching a nine-month high. However, rising mortgage rates, now nearing 7%, are tempering this optimism. Builders are responding by cutting prices to attract buyers, with 30% of them reducing home prices in January.
Navigating these turbulent times, it’s evident that the housing market is at a critical juncture. The next few months will be crucial in determining whether the market can stabilize or if further declines are imminent.
It’s astonishing housing prices haven’t fallen more given the current market conditions. It’s a complete dumpster fire at this point.
Sources:
https://www.newsweek.com/house-prices-slashed-sellers-housing-market-stalls-2018151
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