The housing market trends are sending mixed signals. While home sales have slowed down, prices have climbed to a record high. According to the latest data from the National Association of Realtors (NAR), the median price for an existing home in June 2025 reached $435,300. This is nearly 50% higher than five years ago. So, what is causing this price surge when fewer homes are selling?
This article explores the main reasons behind the unusual trend in housing market trends. We will also look at the role of mortgage rates, the impact on first-time buyers, and how the National Buyers Agents Association (NBAA) can help those searching for a home in today’s complex market.
Housing Market Trends Show a High Price Puzzle: What’s Driving It?
At first glance, it seems strange that prices are going up when fewer people are buying. But when we look closer, it makes more sense. The real estate market today is split between two types of buyers: those with strong financial resources and those who are priced out.
Buyers with home equity, higher wages, or cash savings are still active in the market. These buyers often sell a previous home at a high price, giving them enough funds to buy their next property. Many are even making all-cash offers.
According to NAR Deputy Chief Economist Jessica Lautz, “Today’s housing market is really haves and have-nots.” Those with equity can make trades. First-time buyers, on the other hand, struggle to compete.
Key factors pushing prices up:
- More sales in the luxury home market (homes over $1 million)
- Buyers with high equity or cash paying top dollar
- Limited affordable options for middle- and low-income buyers
As a result, the average price goes up even when overall sales are down. Housing market trends like these show how unequal the market can be. NBAA agents understand these challenges and can assist homebuyers in identifying realistic and affordable options.
Housing Market Trends and Mortgage Rates: A Price Barrier
Mortgage rates also play a big role in today’s market. As of mid-2025, rates are hovering around 6.75% for a 30-year loan. This is much higher than rates during the pandemic, which were around 3% or even lower.
Higher rates mean higher monthly payments, which can add hundreds or even thousands of dollars to a buyer’s expenses.
Here’s how it affects buyers:
- Many first-time buyers can’t qualify for a loan
- Others get approved but can’t afford the monthly payments
- Current homeowners with low rates don’t want to sell and get a higher-rate mortgage
This creates a “lock-in effect” – homeowners stay put, limiting housing supply. This supply crunch, combined with steady demand from cash buyers and investors, keeps prices high.
Housing market trends show that if mortgage rates fall again, demand could rise fast, pushing prices even higher. The NBAA can help buyers plan wisely around interest rate changes and connect with lenders that offer competitive terms.
Housing Market Trends and Inventory: More Homes, Still Not Enough
There is some good news: more homes are for sale now than a year ago. But compared to pre-pandemic levels, inventory is still low. A balanced housing market needs enough homes to meet buyer demand. Right now, that balance isn’t there yet.
Many potential sellers are waiting. Some don’t want to give up low interest rates. Others are unsure if they can afford their next home. Builders are also slowing down new projects due to high material costs and interest rates.
This results in:
- Fewer homes on the market
- Less competition among sellers
- Higher prices for available homes
Housing market trends point to limited inventory as a key pressure point. Buyers are left with limited choices, and many end up bidding against others, which pushes prices even higher. The National Buyers Agents Association has experienced agents who can help buyers find homes before they hit the market and guide them through competitive offers.
Housing Market Trends in New vs. Existing Homes
Traditionally, new homes cost more than existing ones. They offer the latest features, energy efficiency, and customization options. But lately, prices between the two types of homes are nearly the same.
In fact, in some areas, new homes are cheaper because builders are offering big incentives. They may include lower prices, upgrades, or help with closing costs. This can make new homes more attractive to buyers.
However, fewer new homes are being built. Building permits dropped to their lowest level in over two years. Builders face high interest rates, labor shortages, and increased material costs. This limits supply and can raise prices again in the future.
Housing market trends are shifting. If you’re considering a new home, now might be a good time to explore your options. NBAA agents can connect you with reliable builders and explain what incentives may be available.
Housing Market Trends Show First-Time Buyers Are Struggling
The current market is hardest on first-time homebuyers. These buyers often don’t have home equity or large savings. They rely on loans and affordable pricing. But with high prices and mortgage rates, many are locked out.
Challenges for first-time buyers include:
- Limited affordable inventory
- High down payments
- Large monthly mortgage payments
- Competition from cash buyers
Some are getting help from family. Others are waiting longer, hoping the market improves. Still, buying now can make sense for some, especially if prices rise more in the future.
Housing market trends clearly show that first-time buyers face more barriers than ever. Working with an agent from the National Buyers Agents Association can help first-time buyers navigate these challenges. NBAA agents focus on the buyer’s needs, not the seller’s, and can offer advice tailored to your situation.
Housing Market Trends and What You Can Do
In today’s market, the key is preparation. Buyers need to understand the full costs, explore all their options, and work with a knowledgeable agent who can advocate for them.
Steps to take:
- Get pre-approved for a mortgage
- Set a realistic budget
- Research different areas and types of homes
- Consider both existing and new construction
- Be ready to move fast when the right home comes up
Housing market trends show how quickly things can shift. The National Buyers Agents Association can help with all of these steps. Their agents work only for buyers, not sellers. They can explain the market, connect you with local experts, and help you make smart, informed decisions.
Conclusion:
Home prices in 2025 have reached record highs, even as sales slow down. This strange mix is driven by high-end sales, limited inventory, and high mortgage rates. First-time buyers face the biggest hurdles, but there are still paths forward.
Housing market trends are constantly evolving. Whether you’re just starting to look or already in the process, working with a dedicated buyer’s agent can make a big difference. The National Buyers Agents Association is here to guide you, answer your questions, and help you find a home that fits your needs and budget.
Buying a home is one of the biggest decisions you’ll make. With the right support, it doesn’t have to be overwhelming. Reach out to the NBAA today to connect with an agent who can help you take the next step with confidence.
