2024 housing market in review. What to expect in housing in 2025?

I’m Austin, CEO and co-founder of Pacaso. Spring often signals a fresh start in the housing market, and 2025 is no exception. This year, we’re seeing a gradual increase in both inventory and demand. While the year began with lower sales volume, homebuyer demand is gaining traction, and mortgage rates remain below 7%—a welcome trend for buyers. As market conditions evolve, we’ll continue to monitor trends and provide insights. If you have questions about a specific market or are interested in exploring co-ownership opportunities, don’t hesitate to reach out. Some things we’re seeing shaping up this season: While home sales fell 4.9% in January—continuing a broader market slowdown, according to According to the Moreover, Earlier this month, mortgage rates declined for the sixth consecutive week, with the 30-year fixed rate dropping to 6.67%—the lowest level since October 2024. As of Tuesday, March 25, 2025, the current average interest rate for a 30-year, fixed-rate conforming mortgage loan in the U.S. is 6.569%, according to data available from mortgage data company Optimal Blue. While rates have continue to fluctuate, they remain in the 6% range, providing relief to buyers who had been sidelined by above 7% rates and higher borrowing costs. Housing inventory is on the rise, giving buyers more options in many markets. According to However, inventory remains 23.1% below February 2019 levels, meaning buyers in certain regions—particularly parts of the Midwest and Northeast—are still facing tight resale markets with limited options. As we move further into spring, these market dynamics will continue to evolve. Whether you’re considering co-ownership or exploring new real estate opportunities, we’re here to help you navigate the trends. Our team took a deep dive into the latest housing trends across North and South Carolina, and one key insight stood out: North Carolina is leading the way in vacation homebuyer demand, outpacing South Carolina across several key metrics. From the Blue Ridge Mountains to the Outer Banks, buyers are drawn to the state’s natural beauty, accessibility, and year-round lifestyle appeal. Explore the full report to see what’s driving the shift—and what it means for the future of second home ownership in the Carolinas. See the report

I’m Austin, CEO and co-founder of The housing market is indicating signs of recovery and stability in home prices, and we at Pacaso ended the summer with strong sales. Prospective homebuyers are increasingly turning to new construction due to the shortage of existing home listings and continuously fluctuating mortgage rates. This shift in buying behavior has resulted in a surge in new home sales and a modest uptick in pending sales, suggesting positive momentum in the market.  Here is a deeper dive into these observations: Home builders fuel slight sales surge Prospective homebuyers are undoubtedly feeling frustration amid scarce listings for existing homes. As a result, Additionally, according to In August 2023, Pacaso saw its strongest month of the year so far, recording a 142% increase in funded shares compared to July 2023.  Inventory remains low as buyers look to alternatives New listings hit a seasonal low in July, with just under 336,000 properties coming to the market according to However, Given the scarcity of inventory, homebuyers have alternative options like the rental market, which can provide an affordable option as they save up for a home purchase. In top second home markets, co-ownership options like Pacaso offer an innovative solution amidst soaring rates. This ownership  model enables buyers to own a portion of a luxury second home, reducing their monthly mortgage costs in markets like Vail and Tahoe compared to full ownership. Pacaso's resale market is also thriving, with homes averaging a more than Housing market set to embrace 7%+ rates In August, mortgage rates reached their highest levels in 21 years, as reported by While current mortgage rates are hovering above seven percent, the forecasted rates from Annual home prices stabilize, indicating housing market recovery Low inventory continues to cause U.S. home prices to increase. However, the recent rise in mortgage rates to 7% has cooled down the previously upward trajectory of home prices, which had been steadily increasing throughout the year. In June, prices rose on a monthly basis while annual prices remained unchanged, signaling a shift in the housing market. We'll continue to check in with updates, and encourage you to contact us with any questions about a market of interest.

I’m Austin, CEO and co-founder of The housing market is picking up steam well into the spring home buying season. Although fewer homes than usual are being sold this spring, buyers are quickly snatching up those that are on the market — even when mortgage rates may be fluctuating. An uptick in mortgage applications indicates that people are optimistic about the market. Some things we’re seeing: 1. Sellers staying put, inventory hits pre-pandemic low According to 2. Fierce competition for desirable homes The current state of the real estate market continues to be highly competitive, as evidenced by the fact that almost half (48%) of the homes sold in the four weeks ending on April 30th were under contract within two weeks according by This spring, the scarcity of inventory is resulting in fewer homes being sold, but those that are 3. Home prices rise for third consecutive month According to a report originally 3. Homebuyers keep a watchful eye on fluctuating mortgage rates According to Meanwhile, the We'll continue to check in with updates, and encourage you to contact us with any questions about a market of interest.

I’m Austin, CEO and co-founder of As summer officially began last week, the US housing market saw double-digit declines in available homes for sale. However, home builders are stepping up their game by increasing new construction of inventory, reaching the highest levels seen in over a year. Homebuyers are still also showing unwavering interest in actively searching for and purchasing homes despite these challenges. This strong desire to buy and shop in the housing market reflects a resilient and optimistic outlook for the future. As a bonus, the likelihood of a US recession has decreased thanks to the resolution of economic risks. Here are some notable observations: 1. Inventory levels experience double-digit decline According to 2. Home builders respond to low inventory In May, housing starts and permits reached the highest level seen in over a year. Housing starts rose to 1.63 million (SAAR) in May, representing a 21.7% increase from the revised figures of April 2023 and a 5.7% increase from May 2022, according to the 3. Home prices continue to rise According to 4. Homebuyers respond to declining mortgage rates All in all, rates are floating around 7%. While higher interest rates may initially seem unfavorable to real estate investors, they can actually 5. Likelihood of a U.S. recession diminishes According to We'll continue to check in with updates, and encourage you to

I’m Austin, CEO and Co-founder of Pacaso. Spring has brought a renewed sense of optimism to the U.S. housing market, especially for those eyeing vacation and second homes. Buyers and sellers are seeing encouraging trends, from stabilizing prices to evolving ownership opportunities. Here’s a closer look at the factors shaping the second half of 2025 and why the outlook is sunnier than you might think. After a turbulent few years, the national housing landscape is showing signs of stability. According to These signals indicate a market that is rebalancing in favor of buyers, without the doom-and-gloom of a crash. Economists are even predicting further relief on the horizon, with mortgage rates expected to gradually ease later in 2025 per 2. The way Americans buy and use second homes is also evolving, driven by more flexible lifestyles and innovative ownership models. Remote work continues to be a game-changer allowing people to travel more freely and even work from their vacation properties. Thanks to these "workcations," professionals are extending their stays at second homes, blending work and leisure. Another behavioral shift can be seen in how vacation homes are purchased. High prices have led to models like co-ownership which is becoming an increasingly common way for people to buy a vacation home. One recent America's second-home buyers aren't just limiting their search to the fifty states – international vacation homes are increasingly on the radar in 2025. With the U.S. dollar remaining strong and remote work enabling longer getaways, more Americans are deciding that their piece of paradise might just lie overseas. Destinations like Mexico, Spain, Portugal, Italy and Greece are seeing increased demand from the U.S., contributing to record international sales for many European real estate agencies. As we head into summer 2025, the overall outlook for the second-home market is upbeat and forward-looking. While challenges like higher interest rates and economic uncertainty haven't vanished, the market has shown remarkable resilience and adaptability – a key factor in the If you have questions about a specific market or are interested in exploring co-ownership opportunities, don’t hesitate to reach out.

I’m Austin, CEO and co-founder of The real estate market is seeing major shifts this month, driven by mortgage rate changes and ongoing supply-demand dynamics. Last week, the Fed cut rates by 50 basis points, dropping mortgage rates to their lowest in two years. Demand was already rising in September, with more buyers re-entering the market as rates were dropping. This creates more liquidity for the vacation home market and empowers buyers to act. At Pacaso, 50% of our homes already offer financing at 5% or lower, making luxury co-ownership more accessible and attractive for families. Curious to know more? I share some of my latest insights on the U.S. housing market below. We'll continue to check in with any new developments, and encourage you to Mortgage rates continue to fall, with the contract rate on a 30-year fixed mortgage With rates dropping, buyer demand is on the rise. Mortgage applications surged by 14.2% in just one week according to The drop in mortgage rates below 6% has the potential to drive demand, which could increase home prices in many markets. While high rates over the past year have slowed price growth, an influx of buyers competing for a limited number of homes could reverse this trend, especially in popular markets. Prices will likely fluctuate in response to these changing dynamics and some regions will see sharper increases than others. The U.S. is grappling with a significant housing shortage — we are short