Homebuilders Slash Prices, Incentives Hit 5-Year High
Current Trends in Home Price Adjustments Amidst an evolving real estate scene, U.S. home prices manifest modest growth trajectories. They are clocking in at an anticipated 3% increase through 2025. Despite this modest price growth, a notable shift in inventory levels suggests a complex environment unfolding. May 2025 saw a staggering 31.5% rise in home inventory year-over-year. This continues a persistent growth trend over 19 months. Ongoing inventory shortages driven by high mortgage rates result in market stagnation, adding pressure to the tenuous supply-demand equilibrium. With new home inventories reaching their highest since 2007-2008, sellers experience softened pricing power. This prompts frequent price adjustments. This burgeoning inventory appears insufficient to ease prices meaningfully. Prices are still hovering below historical norms. Uneven price adjustments across regions are particularly pronounced in the South and West. This underscores a fragmented recovery. The long-...