High rates & higher inventory mean the housing slowdown isn’t ending soon.

What trends are shaping our country’s housing market right now? There's a lot of uncertainty in the market, not just in the housing market but also in the financial, political, and economic environments.

Recently, I had the opportunity to sit on a call with industry leader Gary Keller, the founder of Keller Williams, and hear his thoughts on where the housing market is headed. I’ll share some of his insights with you.

To understand our current market situation, it’s important to step back and see where we’ve been. In 2024, the U.S. housing market saw historically low sales numbers in Florida and across the entire nation. The last time we sold these few homes was in 1995, three decades ago.

Two big factors that led us into this situation are our interest rates and inventory levels. Interest rates stayed stubbornly high, which made buying less affordable for many people. Meanwhile, inventory remained tight in certain areas, leading to competition and even multiple offers in some markets. Other regions experienced price drops, though they weren’t enough to offset the impact of higher borrowing costs.

“By 2026, we should know whether we’re coming out of this slowdown.”

This resulted in many buyers staying on the sidelines, waiting for better conditions. Unfortunately, according to forecasts, 2025 isn’t expected to look much different. Sales might tick up slightly, but overall, it’s shaping up to be another slow year.

Historically, slower markets tend to last about three years, sometimes up to five. If we count 2023 as the first year of our slowdown, we're likely looking at a similar pattern over the next couple of years. Gary Keller says that by 2026, we should know whether we're coming out of this slowdown. That gives us a clearer timeline to work with. Until then, patience and strategy will be key.

If you have any questions about our specific market or would like a more in-depth analysis of the call I attended, please reach out at (407) 499-8993 or chris@mypinnaclehomes.com. I’d be happy to continue this conversation.