Finally for homebuyers: 'A step in the right direction'

Published On Mar 1, 2025, 7:35 AM

The article discusses the current state of the housing market as the spring homebuying season approaches in 2025. While interest rates and home prices remain high, potential buyers now have a greater selection of homes available due to an increase in inventory, which is up 27.5% from last year. Homes are staying on the market longer, which is leading to more price reductions as sellers become more motivated. Different regions are experiencing varying degrees of competition, with buyers in some areas having more negotiating power. Economists expect the trend of increased available listings to continue, although affordability challenges due to high prices and interest rates remain prominent.

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The increase in housing inventory combined with the longer time homes are spending on the market and rising price reductions indicate a potential cooling in the housing market. However, the demand still exists, particularly in more desirable regions. This duality presents opportunities in home construction and real estate investment trust (REIT) sectors, as companies involved in these markets may begin seeing shifts in demand based on changing consumer preferences.

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