Housing Market STALLS This Summer!
Weak buyer demand and sluggish construction are stirring early signs of a housing correction this summer.
At a Glance
• In July 2025, homes took a median 58 days to sell—the longest July duration since 2017
• Major metro markets like Los Angeles and Seattle showed rising delistings amid cooling demand
• Single-family housing starts and building permits dropped to multi-year lows, signaling waning builder confidence
• A softer jobs report in July nudged mortgage rates lower—though demand hasn’t rebounded yet
• Economists are watching whether ongoing home sales softness could trigger broader price adjustments
Market Slowdown Amid Longer Listings
Home listings in July 2025 lingered longer than normal, with a 58-day median time on market—the longest July since 2017. In urban centers such as Los Angeles and Seattle, delistings have increased as sellers choose to wait for better conditions rather than adjust prices downward. This suggests growing imbalance and softening demand in once-hot hotspots.
Watch now: A New Housing Market “Correction” Begins | July 2025 Update · YouTube
Building Pullback Signals Mounting Caution
Construction data reflect declining confidence. Single-family housing starts fell to a one-year low, while building permits dropped to their slowest level since March 2023. The pullback may limit future supply and could eventually reduce the frequency of builder concessions but also risk aggravating long-term deficits.
Employment Dip Offers Mortgage Relief—But No Surge
July’s weaker-than-expected jobs report helped push the 10-year Treasury yield—and thus mortgage rates—down modestly. The 30-year fixed mortgage rate eased from roughly 6.75 % to 6.58 %. Still, lower rates alone haven’t sparked a wave of buyer activity yet; analysts emphasize that sustained declines may be needed to revive interest.
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