March 26, 2025
ABC News 7 recently published an article featuring Keith Munsell, Master Lecturer of Strategy and Innovation, discussing how despite a two-year decline in the housing market, affordability remains a major issue due to rising home prices and high mortgage rates, pricing many buyers out.
Home prices continue to increase, with the median sales price reaching $398,400, driven by limited supply despite a slight inventory improvement. First-time buyers, making up just 24% of sales last year, face significant challenges entering the market. Builders also struggle with rising costs and uncertainty from fluctuating tariffs, making it difficult to expand supply and ease affordability pressures. Meanwhile, existing homeowners, many of whom locked in historically low mortgage rates during the pandemic, are hesitant to sell, further limiting available inventory.
“Spring season, historically, has always been the best season. But with the interest rates kind of stuck at a more historic level, I just don’t see existing homes being put on the market at any great volume,” Munsell adds.
As affordability challenges persist and inventory remains constrained, the outlook for meaningful relief in the housing market remains uncertain.
