Home sales across the US have plummeted to the lowest level in 16 years – and the threat of a complete collapse is imminent.
May 2025 was recorded as the slowest May for existing sales since 2009, the National Association of Realtors said in a report.
They fell 0.7 percent compared to the same month last year and are likely headed for a freefall across the country.
Potential buyers are scared off by a rocky economy, rising HOA fees and high mortgage and insurance rates, forcing sellers to slash prices.
Median home prices were up 52 percent compared to May 2019, but over the same period wages gained only 30 percent, according to the NAR.
Home sales are only at 75 percent of what they were pre-COVID, said NAR chief economist Lawrence Yun.
Just before COVID hit in 2020, the average monthly payment on a home with a low mortgage rate was roughly $1,000. Today it’s doubled and is roughly $2,000.
‘That doubling in the monthly payment for a new set of buyers is hindering the market condition,’ Yun said.
May 2025 was recorded as the slowest May for existing home sales since 2009
NAR chief economist Lawrence Yun
The number of homes for sale has also become a problem.
Too much inventory is hurting sellers across the US, especially in the West and South.
Redfin has estimated there are 34 percent more sellers than buyers in the country right now.
For sellers, the condo market is especially bad.
In May, condo sales were down 10 percent compared to the same time last year. There are now 83 percent more condo sellers than buyers in the market, Redfin reports.
Many hoped that the housing market would improve as people would list their homes and buyers would bite.
Instead, buyers remain nervous about the economy and the future of their jobs.
Yun said it’s going to take mortgage rates coming down to unstick the housing market.
Potential buyers are scared off by a rocky economy, rising HOA fees, and high mortgage and insurance rates, forcing sellers to slash prices
Redfin has estimated there are 34 percent more sellers than buyers in the country right now
In March home sales dropped to their slowest pace since 2009
Florida realtor Jeff Lichtenstein has advice for sellers and buyers in the current market
‘If mortgage rates decrease in the second half of this year, expect home sales across the country to increase due to strong income growth, healthy inventory, and a record-high number of jobs,’ he said.
Home sales have even hit a recession level low this year.
In March, home sales lowered more than expected — dropping to their slowest pace since 2009 as panicked buyers bailed.
One report warned that five metro areas — three in Florida and two in Arizona — are at huge risk of a housing market crash in 2025.
The tide is turning for buyers
Florida realtor Jeff Lichtenstein has advice for sellers and buyers. He said the housing market is already ‘at the bottom,’ — but that’s not necessarily a bad thing.
‘The vast majority of people are in good shape when it comes to their home,’ he said.
‘They have a ridiculously low 3 to 4 percent interest rate on their mortgage and are in great shape on paper.’
Those people tend to hang on to their homes for a long time.
He said plenty of people still want to buy, and they are growing less nervous because even though mortgage rates are still high, home prices are dropping.
‘We are seeing at street level, sales increase for us in South Florida as we are going into the summer offseason months,’ Lichtenstein told the Daily Mail.
He said homeowners who want to sell quickly need to lower prices, and that buyers have an advantage now.
‘The crash of the century was in 2006 to 2012 and the epicenter was in South Florida,’ he said.
‘This is nothing and I think we are already at the bottom of the amount of activity.’
