The U.S. housing market saw a surge in available homes this April, reaching the highest inventory level since the pandemic began. However, economic uncertainty and rising mortgage rates kept many buyers on the sidelines.
Active listings soar, but buyer demand weakens
According to Realtor.com’s April 2025 housing trends report, active home listings rose 30.6% year-over-year to 959,251 homes. This marks the highest April inventory since 2020, though listings remain 16% below pre-pandemic 2019 levels.
At the same time, the share of listings with price reductions climbed to 18%—the highest for any April since at least 2016. The national median list price remained largely steady at $431,250, up just 0.3% from last year.
Despite the flood of new listings and increased price flexibility, pending home sales fell 3.2% year-over-year. Experts attribute the dip to higher mortgage rates and growing economic concerns.
Trump’s tariffs weigh on buyer confidence
The housing market’s spring slowdown coincides with fresh economic pressures. Consumer confidence took a sharp hit after President Donald Trump announced new tariffs on April 2, leading to market volatility and fears of a recession.
Recent government data showed the U.S. economy shrinking at a 0.3% annualized rate in the first quarter of 2025. Although not officially in recession, economists warn that the country is at risk.
“The economy isn’t in recession, but is on the precipice,” said Mark Zandi, Chief Economist at Moody’s Analytics.
Rising affordability barriers
Affordability remains a major hurdle for many would-be buyers. According to Realtor.com, a household now needs an annual income of $114,000 to afford a median-priced home—up 70% from $67,000 just five years ago.
Several high-cost markets require even steeper incomes:
- San Jose, CA: $370,069 annual income
- Los Angeles, CA: $315,892
- San Francisco, CA: $263,023
- San Diego, CA: $258,926
- Boston, MA: $232,095
Higher mortgage rates are a key factor. In April 2025, 30-year mortgage rates averaged 6.73%, compared to 4.14% in April 2019. Meanwhile, home prices are up 37% over the same period.
Opportunities emerge for prepared buyers
Despite the headwinds, conditions may be improving for some buyers. Rising inventory and an increase in price reductions could give shoppers more negotiating power.
“The number of homes for sale is rising in many markets, giving shoppers more choices than they’ve had in years,” said Realtor.com Chief Economist Danielle Hale. “This could create opportunities for buyers who are prepared.”
Still, with economic instability looming, experts advise caution when making major financial decisions like home purchases.
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