U.S. Housing Market Sees Widespread Slowdown Amid Rising Inventory, Softening Demand

The U.S. housing market is showing clear signs of a slowdown, marked by an increase in inventory and a decrease in buyer demand. Homes, especially townhomes and condos, are taking longer to sell, with buyers favoring established areas closer to town or the beach rather than new developments on the outskirts, as noted by local real estate experts. National data reveals new residential construction starts and permits have fallen to five-year lows, driven by reduced demand, rising home prices, elevated mortgage rates, tariff-induced cost pressures, and labor shortages. The inventory of homes for sale has risen, creating a significant imbalance where sellers outnumber buyers by nearly half a million, leading to more price cuts and seller concessions across many markets. This shift is causing some homeowners, particularly those who bought during the COVID-19 boom, to worry about selling in a cooling market. Despite these trends, local market conditions vary, and economic factors like mortgage rates, employment, and population growth continue to influence buyer and seller behaviors differently across regions.