Weekly Special | August 11, 2025

Good News From Latest Home Sales Count

I am happy to report that the market appears to be shifting in a positive direction. After two consecutive months of year-over-year gains, home sales through July have pulled ahead of last year’s pace.

The graph above shows home sales through July of each year. This year, 2,404 homes have sold, a full 3% more than the 2,332 sold by this point in 2024. Because we’re comparing the same months year over year, this improvement isn’t a seasonal bump, it’s real growth.

But Will It Continue?

Affordability remains a huge challenge, making it difficult for entry-level buyers to get a foothold. With supply still far below normal, prices have held firm, so the only lasting fix to the affordability crisis is to build more homes.

I believe the market will slowly improve.

Mortgage interest rates should continue edging down slightly for the rest of the year, and the “mortgage lock-in” effect, where homeowners hold on to their historically low rates, will gradually fade over the next five years as life events push people to move.

I don’t expect an explosion of sales anytime soon, unless the federal government pushes rates below 5%, which (I hope) isn’t likely. If it does happen, it could trigger a sizable recession.

For now, the outlook is brighter than it’s been in quite a while, and I’m glad to share some good news when most of what we’ve seen lately has been less encouraging.

If you want to learn more about why the terms “home” and “house” are critically different for home sellers, check out the video I posted yesterday, you will learn some money-saving home selling tips.

The original one-page Weekly Special PDF is still available.