Housing Market Surprise: Fewer Buyers, but Prices Stay High

The US housing market is experiencing a surprising trend. While the number of homes sold significantly exceeded the number of homes bought in May 2025, creating a large gap (33.7% more sellers than buyers), home prices haven't dropped as expected. This is because many sellers, having locked in low mortgage rates years ago, are hesitant to lower their asking prices. "A lot of those folks who are selling, they are not so quick to lower their prices," says Jill Schlesinger, CBS News business analyst. However, Redfin predicts a small 1% price drop by the end of the year. This prediction is supported by price decreases already seen in several sunbelt cities. In Austin, Texas, for example, the median home price has dropped from $500,000 to around $400,000 in just a few years, following a 45% increase since 2020. This illustrates the complex interplay of supply, demand, and mortgage rates in shaping the housing market. Despite the predicted price drop, the market remains expensive, with mortgage rates more than double what they were five years ago. The market's future remains dynamic, with regional variations and continued impact from interest rates.