U.S. Real Estate Market Update
Hello, this is Richard Choi from New Jersey Real Estate. Recently, major U.S. news networks have been covering significant shifts in the real estate market. Home price growth has slowed considerably, and in some regions, prices are starting to decline. The number of homes for sale is also noticeably increasing.
According to April data from real estate analytics firm Redfin, we’re seeing a striking shift: supply is now outpacing demand by 34%. There are approximately 1.9 million people looking to sell, compared to just 1.5 million buyers—a gap of 500,000, the largest since 2013. Just a year ago, the gap was only 6.5%, and two years ago, there were more buyers than sellers.
This change is reflected in multiple market indicators:
- Only 44% of homes are selling within 60 days on the market.
- Home prices dropped in 27 states last month.
- While prices in 2025 remain higher than last year, growth has slowed significantly. After rising 15–20% since 2021, home prices are now up only 1.9% year-over-year.
- The spring season has seen price growth slow for 11 consecutive months.
- As of March, national price growth had nearly flatlined, giving buyers a stronger position in the market for the first time in years.
What’s Driving the Change?
- Shifting mindset of existing homeowners
Homeowners who locked in low interest rates were hesitant to sell when rates rose. But now, many are adjusting to higher rates and realizing they can’t wait forever. - Economic uncertainty and the need for liquidity
With a weaker economy and job instability, some people are selling to free up cash, downsize, or relocate to more affordable areas. After years of price gains, many sellers still stand to make a profit. - Buyer psychology is changing
A recent survey shows that urgency among buyers has cooled. Where once people feared prices would rise further, many now believe waiting could get them a better deal. - Rapid inventory growth
According to Realtor.com, housing inventory is up 30% year-over-year. The market has seen 81 consecutive weeks of increasing listings, now surpassing 1 million homes—the highest level since 2019. Many sellers believe prices are near their peak and are motivated to sell before conditions worsen. Investors are also reallocating to potentially more profitable non-real estate opportunities.
Regional Market Trends
Some markets are cooling rapidly. Florida (including Miami, West Palm Beach, Fort Lauderdale, and Jacksonville), Texas (Austin, Dallas), Tennessee (Nashville), Las Vegas, and Phoenix are seeing notable slowdowns.
Meanwhile, areas like New Brunswick (NJ), parts of New York, Montgomery County (PA), and Cleveland (OH) remain strong. Bergen County, NJ, in particular, still shows signs of a strong seller’s market, with annual price growth of 6–8%.
Advice for Prospective Buyers
Do you remember the intense competition—cash offers, bidding over asking, waiving contingencies? Fortunately, those days might be behind us. For the first time since 2019, buyers have more negotiating power.
Realistic Market Outlook
Don’t expect prices to crash by 10–20%. Instead, prices are likely to remain flat or rise slightly.
Final Advice
If you’re planning to buy, choose a home within your budget and secure a fixed-rate mortgage—especially if you plan to stay at least 7–10 years. Unless you can rent a similar home for much less, owning still makes sense long-term.
Real estate should always be viewed as a long-term investment. Take this market shift as a chance to reassess your strategy. I hope this insight helps guide your real estate decisions.
New Jersey Realtor Richard Choi
