Weekly Insights

Housing Market Takes a Turn—What It Means for Your Next Move

Prince Preston

20 Dec 2025 — 1 min read

What Happened

Recent U.S. housing data show promising signs that affordability is slowly improving. Analysts from Bloomberg report home price growth is expected to slow to about 1.5% in real terms in 2026—meaning prices may finally align more closely with wage growth. Additionally, year-end builder incentives are becoming more common: discounts, flexible financing, and promotions on quick-move-in homes are appearing to meet sales targets.

Understanding the Context

Prices Cooling: After a dramatic rise in recent years, housing prices are stabilizing as mortgage rates hover in the 6.3–6.4% range, slightly easing affordability pressure.
Increased Inventory: New listings have edged up, and builder sentiment remains pessimistic—meaning more homes are available for buyers to choose from.
Builder Discounts: With slower buyer demand in winter, builders are offering incentives to meet year-end quotas, especially on ready-to-move-in homes.

What This Means for Buyers

More Negotiation Power: Falling builder confidence and rising inventory give buyers leverage—look for end-of-year price cuts or perks.
Mortgage Opportunities: While long-term mortgage rates aren’t directly tied to Fed cuts, they're down slightly from their spring highs, settling in the low-6% range.
Affordability Gains: With price increases slowing and wages rising, homes may become more financially reachable—even if inventory remains limited.

What You Can Do This Week

If You're Buying Now:
- Visit open houses on quick-move-in homes and ask about year-end incentives.
- Compare mortgage offers—each 0.1% rate change could save you thousands.
If You've Paused Purchasing:
- Reassess your timing: Slower demand and rising inventory could mean less competition.
- Use this time to improve your credit score or down payment.
If You're Selling:
- Act fast: Buyer demand slows through February. Incentives may pressure pricing.
- Consider smart staging: make your home stand out in a market with more options.

Why It Matters

Housing is often the single largest expense for households. Any shift—whether it’s price stability, rate movement, or builder strategy—can ripple across personal budgets, community economics, and long-term planning.

Key Takeaways

Buyers: You have more leverage—ask for builder incentives and shop rates now.
Sellers: Act quickly before market conditions soften further.
Market Watch: Affordability improving—but real gains need sustained rate stability and inventory growth.

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