Building Inspection Services NAICS 541350

Nov 17, 2025 - Pending Home Sales Weak

• Tepid pending home sales could signal weaker demand for building inspection services. Pending home sales were flat in September compared to August and were down 0.9% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "Contract signings matched the second-strongest pace of the year. However, signings have yet to fully reach the level needed for a healthy market despite mortgage rates reaching a one-year low. A record-high stock market and growing housing wealth in September were not enough to offset a likely softening job market."
• Home-purchase cancellations are rising nationwide, with 15% of deals falling through in September, up from 13.6% a year earlier, according to Redfin and reporting by The Wall Street Journal. Economic uncertainty, job insecurity, and high home prices are fueling buyer hesitation. Inspections revealing costly repairs often trigger renegotiation or collapse, especially in a market where buyers have more leverage and sellers resist price cuts. Real estate agents recommend pre-inspection reports and signed backup offers to reduce fallout. Buyers risk losing earnest money if they cancel outside contract terms, while sellers face more prolonged market exposure. The standoff reflects a stalled housing market, where deals unravel due to issues with financing, insurance costs, or inspection findings.

• The Market Composite Index, a measure of mortgage application activity, fell a seasonally adjusted 0.6% for the week ending November 7, 2025, compared to the week before, according to the Mortgage Bankers Association (MBA). The seasonally adjusted Purchase Index increased 6% over the same period. MBA Vice President and Chief Economist Joel Kan said, "Purchase applications picked up almost 6 percent over the week to the strongest pace since September, despite mortgage rates increasing slightly, with the 30-year fixed rate rising to 6.34%. Purchase applications for conventional, FHA, and VA loans increased, as potential homebuyers continue to shop around, particularly in markets where inventory has increased and sales price growth has slowed. Based on the unadjusted purchase index for the week, this was the strongest start to November since 2022." Home purchase mortgage applications are a demand indicator for building inspection services.
• The National Association of Home Builders' 2025 Profile of Home Buyers and Sellers reveals a record-low 21% share of first-time buyers, with their median age rising to an all-time high of 40. This shift has significant implications for the building inspection industry. Older, equity-rich repeat buyers now dominate the market, often purchasing newer or larger homes with fewer defects, which may reduce demand for pre-purchase inspections. Meanwhile, first-time buyers, who typically rely more on inspections, are entering the market later and less frequently. With sellers staying in homes longer, now a median of 11 years, inspectors may encounter aging systems and deferred maintenance, increasing the importance of thorough evaluations.