U.S. Spring Home Sales Hit 13-Year Low Amid Economic Uncertainty

In the United States, the spring selling season, traditionally the peak period for real estate transactions, has seen its weakest performance in 13 years. The number of home sales contracts signed between April and June reached its lowest level since 2012, a time when the housing market was still struggling to recover from the financial crisis. Despite a decline in mortgage interest rates, a slowdown in home price growth, and some easing of inventory shortages, the economic uncertainty caused by the tariff policies has severely impacted market confidence.

Economic uncertainty has suppressed purchasing demand, making potential homebuyers more cautious in their decisions. This hesitation has led to a significant slowdown in transaction activity, even in the face of price reductions and promotions. The fear of job displacement due to artificial intelligence and the economic impact of tariffs has further exacerbated market volatility, causing potential buyers to adopt a wait-and-see approach.

The economic anxiety has worsened the situation, with many people concerned about the future economic outlook. This fear is suppressing demand for home purchases. In response to the weak demand, sellers are beginning to withdraw their listings from the market, which will limit the available inventory. This trend is occurring across various regions, as sellers are reluctant to sell their properties at a loss in an unfavorable market environment.

The outlook for the housing market remains bleak, with affordability at its lowest level since the 1980s. High borrowing costs over an extended period have changed the assumption that one can buy a home first and refinance later. The economic uncertainty and the resulting market volatility have created a challenging environment for both buyers and sellers, making it difficult for the housing market to recover in the near future.