Home Sales Hit 30-Year Low as Inventory Climbs
Existing home sales continued their downward trend in April 2025, falling to an annualized pace of just 4.0 million units. This marks a 2% decline compared to April 2024, 5% below April 2023, and a staggering 28% lower than April 2022. Meanwhile, inventory is rising sharply, up 21% year-over-year to 1.45 million homes, the highest level seen since early 2020, according to the National Association of Realtors (NAR). This growing gap between supply and demand reflects a market struggling under the weight of high mortgage rates and cautious buyers. Perhaps most strikingly, transaction volume has dropped to levels not seen since 1995, a time when the U.S. population was about 70 million fewer than today. While a rebound in sales is expected over time, meaningful recovery likely hinges on a significant drop in interest rates to reenergize buyer activity and restore balance to the market.
Price, Polish, or Pause: Why Now Is the Time to Act in a Shifting Market
The charts above make the message clear, inventory has surged dramatically, and the market has shifted in favor of buyers. Homes that have been on the market for over 30 days without a price drop of at least $10,000, or without meaningful updates to areas like the kitchen, color scheme, or master bath, need to take action—either adjust the price, improve the condition, or both. This Spring/Summer season is moving slower than usual, and in today’s market, pricing and condition are everything. National trends confirm it: waiting could mean tougher conditions ahead. It’s smarter to sell now in a cooling Spring/Summer market than risk entering an even slower Fall/Winter one.
Vacation Home Demand Dips in Florida as Local Buyers Take the Lead
n 2024, the demand for second homes—also known as vacation homes—saw a notable drop in Florida and across the U.S., driven by rising housing costs, insurance premiums, and shifting lifestyle preferences. According to Redfin, only 86,604 mortgages were taken out for second homes nationwide, the lowest level since tracking began in 2018 and a 5% decline from 2023. Florida saw some of the steepest drops, with Miami leading at -32.2%, followed closely by Orlando, Fort Lauderdale, West Palm Beach, and Tampa. Soaring insurance and HOA costs, along with increased natural disaster risks and a cooling rental market, have made second-home ownership less attractive—especially for out-of-state buyers. In addition, return-to-office mandates and persistent affordability challenges have reshaped who is buying and why.
Despite the slowdown, second-home activity hasn’t disappeared—it’s just shifting. Today’s buyers are more likely to be high-income, middle-aged, and local. While second-home mortgages now make up just 2.6% of all home loans nationwide (down from a pandemic-era peak of 5% in 2020), cash buyers—particularly in places like South Florida, where cash purchases make up nearly half of all sales—continue to play a quiet but significant role. For Florida Realtors®, this data signals an important pivot: focus prospecting and strategy around repeat local buyers and sellers, who remain the most active participants in today’s market. First-time buyers and second-home seekers still exist, but they’re increasingly selective—and sensitive to price, location, and risk. As the landscape shifts, so should the business approach.
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