Moving Companies NAICS 484210

Mar 21, 2025 - Buyers Gain Leverage in Housing Market

• The advantage in the US housing market may be shifting from sellers to buyers, according to The Wall Street Journal. Bidding wars are less common as competition over homes on the market has waned, which is giving potential buyers more leverage. On average, existing homes are selling for 2% below the asking price, according to Redfin. The reduction in seller pricing power is partly due to more homes coming onto the market. According to Redfin, new listings were up 5% in January compared to a year earlier. Houses are also staying on the market longer, creating an advantage for buyers. In January, the typical home sale had been on the market for two months, marking the most extended period since February 2020, according to Redfin.
• Affordability in the US housing market is expected to improve slightly in 2025 and 2026, but strides will be due to falling interest rates rather than lower home prices, according to a recent Reuters poll of property market insiders. Nearly two-thirds (62%) of those surveyed in February 2025 said that affordability conditions for first-time home buyers would improve over the coming year. Polling medians suggested survey respondents expect average 30-year mortgage rates to drop to 6.76% in 2025 and 6.32% in 2026. While home prices are expected to continue rising, the pace of price growth will slow. Moody’s Analytics estimates there is a shortage of about 2.6 million units. Homeowners who locked in low mortgage rates before they began rising are reluctant to sell, leaving potential buyers relying more on the new home market.

• A lack of affordability in the new, single-family home market could reduce demand for moving services. In 2025, nearly 75% of US households are unable to afford a median-priced new home, according to the National Association of Home Builders. Given a median new home price of $459,826 and a 30-year mortgage rate of 6.5%, more than 100 million US households are priced out of the market. In 23 US states and Washington DC, more than 80% of households cannot afford a median-priced new home, suggesting a significant discrepancy between home prices and household incomes.
• Young adults are staying in their parents’ homes longer amid a lack of affordable rents, the run-down in pandemic-era savings, and high mortgage rates, according to National Association of Home Builders’ analysis of recently released US Census data. In 2023, 19% of adults ages 25-34 lived with parents, which was unchanged from 2022. While the percentage of adults living with parents in 2023 was the second lowest since 2011, it was elevated by historical standards. Young adults typically account for about half of first-time homebuyers, so continuing to live with parents reduces household formations, which puts downward pressure on housing demand. A reduction in household formations can also reduce demand for moving services.