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🏡 Home Prices Rebound After Brief Pullback – But Here’s the Good News for Homebuyers…

After a short-lived dip, home prices in the U.S. have resumed their upward climb, offering a mixed bag for buyers and sellers alike as we head into summer 2025.

📈 According to the latest Realtor.com® Weekly Housing Trends Report, the national median listing price rose by 0.2% year-over-year in the final week of May. Even more notably, the median price per square foot increased by 0.9%, signalling renewed momentum after a temporary pullback.

🔍 Why This Rebound Matters

This modest increase follows a 1.1% decline the previous week and breaks a streak of flat pricing over nine weeks. But it’s not just about the numbers—it’s about what they represent. According to Realtor.com economist Jiayi Xu:

“This marks a faster pace of growth than in the prior two weeks and suggests that the underlying value of homes continues to increase.”

Still, challenges remain—especially when it comes to affordability.

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💸 Mortgage Rates: Still a Hurdle for Many Buyers

For the week ending May 29, 2025, the average 30-year fixed mortgage rate climbed to 6.89%, reflecting continued volatility in the bond market and policy uncertainty—especially around President Trump’s evolving stance on Freddie Mac and Fannie Mae.

That increase keeps housing affordability strained. Nearly 2 in 5 homebuyers surveyed by Realtor.com cited budget limitations as a major barrier to ownership. Add to that the 63% of respondents expecting a recession, and it’s no wonder buyers are cautious.

But today that trend seemed to be reversing, at least in the short-term. US mortgage rate data for June 5th showing a sharp decline in rates across most loan types – easing affordability for some buyers, investors, and those refinancing.

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🟢 But Here’s the Silver Lining: A More Balanced Market

Despite the affordability crunch, this summer is shaping up to be more buyer-friendly than recent years. The data reveals a clear shift toward a more balanced environment:

🏠 Inventory Is Up — A Lot

• New listings jumped 8.2% YoY

• Total active listings rose 29.7% YoY

• Over 1 million homes are now on the market — the highest since December 2019

This marks the 81st consecutive week of annual inventory gains, giving buyers more choice and less competition than at any point in the past four years.

🤝 Competition Is Down

Another encouraging sign? Fewer buyers are worried about bidding wars. That’s a big psychological shift, making the process less daunting and emotionally taxing.

“The home search is a little less stressful,” says Xu.

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🕰️ Homes Are Taking Longer to Sell — But That’s Not a Bad Thing

The market pace has slowed:

• Homes are spending five more days on the market compared to this time last year

• The average time on market is now around 50 days, versus just 33 days during the peak frenzy of May 2021

That gives buyers more breathing room to negotiate, inspect, and make thoughtful decisions.

📊 For comparison:

• Today: 50 days on market (May 2025)

• Peak pandemic (2021): 33 days

• Pre-pandemic (2019): Slower than today’s average

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🏦 US Mortgage Rates for Foreigners

For international buyers looking to invest in U.S. real estate, here’s a snapshot of current mortgage options:

These rates apply to Debt Service Coverage Ratio (DSCR) loans, ideal for non-resident investors focused on rental income rather than personal credit history.

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🎯 What This Means for You

📈 For Buyers:

• More listings and longer time on market mean less pressure

• Prices are steady, not skyrocketing

• It’s a more rational, manageable buying process

• Mortgage rates remain elevated, but strategic timing can help lock in better deals

🏷️ For Sellers:

• Recalibrate expectations: Gone are the days of weekend bidding wars

• Proper pricing and presentation will matter more than ever

• Be ready for longer time on market — patience is key

🏦 For Investors:

• Focus on cashflow: Use conservative underwriting when analysing your deals

• Don’t overleverage: Stick to 75% loan-to-value financing – or less

• Follow affordability: Look for deals in markets where homes are affordable for local buyers

• Negotiate: Look for motivated sellers and negotiate of price or ask for concessions

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🧠 Takeaway: It’s Not Just About Price — It’s About Strategy

The U.S. housing market isn’t crashing, nor is it booming. It’s normalizing. For buyers and investors, this could be one of the best windows in years to make a move without the stress and frenzy of previous seasons. For sellers, it’s time to shift from “easy money” to “smart selling.”

In short: the real estate market is healthier than it looks — if you know where to look.

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📌 Stay tuned for weekly housing updates, market forecasts, and investment tips tailored to both U.S. residents and international buyers.