Housing Market Shifts Toward Buyers as Demand Weakens Nationwide

The U.S. housing market is showing signs of stalling despite a slight decline in mortgage rates, which recently averaged 6.85%, as affordability challenges persist due to high home prices and economic uncertainty. New listings have increased modestly, but demand remains weak with pending home sales dipping to their lowest May level since 2020, and many buyers exhibiting decision fatigue and reluctance amid financial pressures. In several major metro areas, including San Jose and multiple Florida cities, new listings have declined year-over-year, signaling decreased seller confidence. Experts note that falling mortgage rates alone are insufficient to revive the market if home prices continue to rise, as monthly payments for median-priced homes remain nearly double those from 2019. In New Zealand, a similar trend is observed where reduced open home visits and fewer auction attendees accompany softening prices and employment concerns, despite rising consumer optimism about buying conditions. Overall, the housing market is shifting towards buyers, but many remain hesitant to engage fully due to financial and emotional stressors.