U.S. Housing Market Cools: Prices Dip, Inventory Surges to 2008 Highs

U.S. Housing Market Cools: Prices Dip, Inventory Surges to 2008 Highs June 10, 2025 — Washington, D.C.: The U.S. housing market is showing clear signs of stress as home prices declined by 0.12% in March, marking the first monthly drop after nearly two years of uninterrupted growth. Analysts note that the dip, while modest, signals a broader correction amid economic uncertainty and buyer fatigue. The decline spans major metropolitan areas, from New York to Los Angeles, and reflects a growing gap between seller expectations and buyer affordability. Adding pressure to the slowdown is a sharp increase in unsold housing inventory, now at levels last seen during the 2008 financial crisis. Many sellers are being forced to offer significant concessions—ranging from reduced asking prices to subsidized interest rates—to attract hesitant buyers. “This isn’t just seasonal cooling,” said a senior economist at Redfin. “Inventory buildup and price drops together suggest structural cracks in the market.” High mortgage rates, rising property taxes, and inflation-weary buyers have all contributed to weakening demand, even as new listings surge. With the Federal Reserve unlikely to slash interest rates soon, economists warn the housing sector could face further price corrections in the second half of 2025.