Housing Market Gets Worrying Sign for Spring 2025
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
The sale of previously owned homes across the United States fell sharply by 5.9 percent in March from the previous month, according to data released on Friday by the National Association of Realtors.
Simultaneously, the industry body reported that the housing sales pace had fallen to its lowest level since the 2009 subprime mortgage crisis, raising concerns for the broader U.S. economy.
Newsweek reached out to the Department of the Treasury for comment on Friday via email outside of regular office hours.
Why It Matters
President Donald Trump announced dramatic new tariffs on foreign imports on April 2, which he dubbed "Liberation Day." Many of these were later postponed for 90 days, but tariffs of 145 percent on most imports from China, along with a 25 percent tariff on imported automobiles, remain in effect.
On Tuesday, the International Monetary Fund slashed its 2025 U.S. growth forecast from 2.7 percent to 1.8 percent, citing tariffs as one of the reasons. Concerningly, for U.S. policymakers, the housing data published on Friday cover the period before most of the new tariffs were announced, meaning that most of their impact has yet to be reflected in the figures.
What To Know
The National Association of Realtors' data, published on Friday, showed a 5.9 percent decline in existing home sales between February and March 2025, with the total figure dropping to an annualized, adjusted rate of 4.02 million.
This annualized rate was the lowest since 2009, during the Great Recession, when the U.S. property market was engulfed in a subprime mortgage crisis.
Notably, the fall occurred across all four U.S. Census Bureau regions, with the most dramatic decline of 9.4 percent occurring in the West.
A for sale sign is displayed outside of a home for sale on August 16, 2024, in Los Angeles.
A for sale sign is displayed outside of a home for sale on August 16, 2024, in Los Angeles.
PATRICK T. FALLON/AFP/GETTY
This was followed by a 5.7 percent cut in the South, a 5 percent cut in the Midwest, and a 2 percent cut in the Northeast.
Simultaneously, the median price for existing homes sold in March rose by 2.7 percent from the same month in 2024 to $403,700, with increases recorded in all four Census Bureau regions.
However, according to data published by real estate brokerage Redfin, house prices only increased by 0.2 percent between February and March 2025, the slowest pace of growth since December 2022.
Redfin figures also showed that 52,000 house sales were canceled in March, a total of 13.4 percent, which is the third-highest March figure since 2017.
What People Are Saying
National Association of Realtors chief economist Lawrence Yun said: "Home buying and selling remained sluggish in March due to the affordability challenges associated with high mortgage rates. Residential housing mobility, currently at historic lows, signals the troublesome possibility of less economic mobility for society."
Realtor.com chief economist Danielle Hale commented: "The past few years have hinged on whether there would be enough sellers, but as the proverbial housing shelves are better stocked, 2025 is more likely to be about where there are buyers."
What Happens Next
Any impact from Trump's tariff program is likely to feed into the housing market in the coming months. Trump argues that the tariffs are needed to revitalize American industry and prevent the U.S. from being exploited, but critics warn that they will reduce economic growth.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
US aerospace industry anxious as tariffs loom
US airlines and aerospace manufacturers insist they have no use for tariff protections, warning that the proposed Trump administration levies could eat into the healthy trade surplus the sector has enjoyed for more than 70 years. At the request of President Donald Trump, Commerce Secretary Howard Lutnick's department launched an investigation on May 1 to determine whether to impose tariffs of between 10 and 20 percent on civil aircraft and parts, including engines. The US industry those tariffs were crafted to protect swiftly let the administration know it was not interested. "Imposing broad tariff or non-tariff trade barriers on the imports of civil aviation technology would risk reversing decades of industrial progress and harm the domestic supply chain," the Aerospace Industries Association (AIA) said in a letter addressed to Lutnick and obtained by AFP. The interested parties were given until June 3 to communicate their positions. The very next day, Lutnick announced that Washington aimed to "set the standard for aircraft part tariffs" by the end of this month. "The key is to protect that industry," he said, adding: "We will use these tariffs for the betterment of American industry." But AIA and the Airlines for America (A4A) trade association voiced fear that far from helping, the tariffs would end up harming US manufacturers. - No fix needed - "Unlike other industries, the civil aviation manufacturing industry prioritizes domestic production of high-value components and final assembly," AIA pointed out. According to the organization, US aerospace and defense exports reached $135.9 billion in 2023, including $113.9 billion for civil aviation alone. This allowed the sector to generate a trade surplus of $74.5 billion and to invest $34.5 billion in research and development, it said. The sector employs more than 2.2 million people in the United States across more than 100,000 companies, which in 2023 produced goods worth nearly $545 billion. In its response to Lutnick, the A4A highlighted how beneficial the international Agreement on Trade in Commercial Aviation (ATCA) had been by helping to eliminate tariffs and trade barriers over nearly half a century. "The US civil aviation industry is the success story that President Trump is looking for as it leads civil aerospace globally," it insisted. A full 84 percent of production was already American, it said, stressing that Washington "does not need to fix the 16 percent" remaining. "The current trade framework has enhanced our economic and national security and is a critical component to maintaining our national security moving forward," it said. For manufacturers, the potential tariffs would act like sand jamming a well-oiled machine that has been running smoothly for decades, experts warned. They would also throw off balance an ultra-sensitive supply chain still recovering from the Covid-19 pandemic. - 'Competitive disadvantage' - "To avoid the situation getting worse, we advocate to keep aerospace outside of trade wars," Willie Walsh, head of the International Air Transport Association (IATA), told the organization's general assembly last week. AIA meanwhile stressed that "aircraft and parts are already in high demand and have a limited supply." "Integrating new suppliers and expanding capacity is complex, timely, and costly," it warned, pointing out that finding suppliers capable of meeting rigorous safety certifications could "take up to 10 years." Delta Air Lines also argued for sticking with the status quo, cautioning that the proposed tariffs "would hinder Delta's ability to maintain its current trajectory." "If component parts incur tariffs upon entering the United States, Delta will be at a competitive disadvantage to foreign competitors," it said. "The action would also impose an unexpected tax on Delta's purchases of aircraft contracted years in advance." Delta chief Ed Bastian insisted in late April that the airline "will not be paying tariffs on any aircraft deliveries we take," adding that it was "working very closely with (European group) Airbus" to minimize the impact. Delta pointed out in its letter to Lutnick that it currently had 100 aircraft on order from Boeing, and that it was demanding that its Airbus A220s be produced primarily in Mobile, Alabama. But if the tariffs are imposed, it warned, "Delta would likely be forced to cancel existing contracts and reconsider contracts under negotiation." elm/tu/ph/nl/aha Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
A hot trend in the housing market is Gen Z buying homes with siblings
Despite a housing market that continues to price out many young Americans, members of Gen Z are digging deep to find ways to afford their dreams of homeownership. According to a Bank of America Institute survey, more Gen Zers are taking on extra jobs or teaming up with siblings to buy homes. Young Americans are not letting an unaffordable housing market prevent them from purchasing their own homes. According to a recent Bank of America Institute survey, more Gen Zers are getting help from outside the Bank of Mom and Dad, which has long been a mainstay in the finances of young adults. 'Despite financial hurdles, the dream of homeownership remains a powerful motivator for Gen Z and Millennials, who are making sacrifices in the present to prioritize the long-term financial security a home can provide,' BofA's annual Homebuyer Insights Report said. It found that 30% of Gen Z homeowners paid for their down payment by taking on an extra job, up from 28% in 2024 and 24% in 2023. The survey also revealed a sharp increase in another financial resource: 22% of Gen Z homeowners bought their home with siblings, surging from 12% in 2024 and just 4% in 2023. That tracks similar data about co-ownership. According to a 2024 survey by JW Surety Bonds, nearly 15% of all Americans have co-purchased a home with a person other than their romantic partner. But Americans seem to prefer staying within the family. A Redfin study last year found that more than a third of millennials and Gen Zers who are planning to buy a home expect their parents or family to help with their down payment. According to BofA's recent report, 21% of prospective Gen Z buyers said they plan to rely on family loans for a down payment, compared to 15% of survey respondents overall. 'Even with the challenges they face, younger generations still understand the long-term value owning a home offers them and many are doing what it takes to get there,' Matt Vernon, BofA's head of consumer lending, said in the report, which came out May 28. 'They are finding creative ways to afford down payments and working hard to improve their financial futures.' That's as the homeownership rate for Americans younger than 35 dipped to just 36.3% in the fourth quarter of 2024, the lowest since early 2019, though it edged up to 36.% in the first quarter of 2025, according to data from the U.S. Census Bureau. Meanwhile, the BofA study found that among survey respondents overall, the housing market—which has largely remained frozen by high mortgage rates and home prices—is a puzzle. Sixty percent of current homeowners and prospective buyers said they can't tell whether it's a good time to buy a home or not, versus 57% last year and 48% in 2023. Still, a larger share of prospective buyers think the market is better now than a year ago and are holding off on buying as they expect mortgage rates and home prices to fall later. 'They may be waiting for the right moment, but they're not standing still,' Vernon said. 'They're building credit, saving for down payments, and paying attention to the market so they can buy when the time is right for them.' In fact, a key tipping point in the housing market is coming into view as momentum shifts more firmly in favor of buyers over sellers. Home-sale prices in 11 of the 50 biggest U.S. metro areas are already falling, according to data from Redfin, ahead of a broader decline later this year. Redfin sees the median U.S. sale price going flat in the third quarter on an annual basis, then falling 1% year over year by the fourth quarter. That follows a similar forecast from Zillow in April, when it predicted home values will fall 1.9% this year after previously anticipating a 0.6% increase. 'The combination of rising available listings and elevated mortgage rates is signaling potential price drops by year's end,' Zillow researchers wrote. 'With increased supply, buyers are gaining more options and time to decide, while sellers are cutting prices at record levels to attract bids.' This story was originally featured on
Yahoo
2 hours ago
- Yahoo
The ‘Terrifying' Impact of Trump-Musk Breakup on National Security and Space Programs
This week's rapid, unscheduled disassembly of Elon Musk's bromance with Donald Trump has left officials at America's space and security agencies reeling. One NASA official, wary of the agency's dependence on SpaceX as the space exploration industry's leading recipient of government contracts, said the bitter public feud between the president and the former DOGE chief had at first been 'entertaining' but that later, 'it turned really terrifying,' per the Washington Post. Musk and Trump's falling out was received with similar horror at the Pentagon, the Post's report continued where officials initially thought it was 'funny' watching the pair trade barbs on their respective social media sites before 'there was a realization that we're not watching TV. This is a real issue.' Both NASA and the Department of Defence have reportedlt embarked on a blitz of calls in recent days to SpaceX competitors, urging firms like Sierra Space, Rocket Lab, Stoke Space and Blue Origin, owned by Amazon's billionaire founder Jeff Bezos, to accelerate development of their rocket systems after Trump threatened to cancel Musk's contracts on Thursday night. Contracts held by SpaceX with the U.S. government, worth many billions of dollars, cover a wide variety of services, from launching satellites for the Pentagon and intelligence agencies to flying cargo and people to and from the International Space Station. Officials at NASA were apparently particularly concerned by Musk's threats, which he's since walked back, to discontinue SpaceX's use of its Dragon craft, which would potentially have left the agency without means of transporting astronauts to the orbiting research station. 'When you realize that he's willing to shut everything down just on an impulse, that kind of behavior and the dependence on him is dangerous,' as one member of the agency told the Post. 'I can tell you there is deep concern within NASA.'
