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73 June 2025 J O U R N A L June 2025 » Note: RHPI data is subject to modifi- cation. Buyers Desire Homes but Choos- ing to "Wait and See" What the Mar- ket Will Offer Industry expert and Redfin Senior Economist Sheharyar Bokhari suggests that there are two main reasons why home values are virtually unchanged. Firstly, homebuyer demand remains much lower than it has been. With the effects of U.S. tariff policy and a possible recession significantly influencing their decision to make large purchases, buyers are taking on a "wait- and-see" stance. In April, pending home sales decreased 3.5% month over month on a seasonally adjusted basis as more buyers stayed away from the market. Secondly, despite weakening demand, U.S. housing supply remains el- evated. Due mostly to the fact that homes just aren't selling, the overall number of properties listed for sale is at its highest level in five years. As a result, home sellers are making concessions at nearly all-time highs to draw in more buyers. "Home prices are flat, and that's good news for buyers after years of rapid increases," Bokhari said. "But even with prices softening, affordability remains a major hurdle. Elevated mortgage rates and high prices mean that many buyers are stretching their budgets to make a purchase." Further, Mark Fleming, Chief Econo- mist at First American, suggests prospec- tive homebuyers still possess optimism as price appreciation moderates. First American also released its April 2025 Home Price Index (HPI) report, tracking home price changes less than four weeks behind real-time at the national, state, and metropolitan (Core-Based Statistical Area) levels and including metro price tiers that segment sale transactions into starter, mid, and luxury tiers. "House prices nationally reached another record high in April, but the annual growth rate has slowed to its lowest level since 2012, underscoring the ongoing rebalancing in the market," said Mark Fleming, chief economist at First American. "Persistently high mortgage rates have tempered de- mand, while increased inventory has boosted supply, dragging house price appreciation down. This normalization follows the unsustainable price growth seen during the pandemic. Although affordability remains a challenge, slower price appreciation is encouraging for potential home buyers as it lets their income-growth driven house purchasing power increase." First American reported that as of February 2020, home prices have increased nationwide by 57.2% from their pre-pandemic levels. Home price growth for February 2024–March 2025 that was published in the HPI last month was First American Data & Analytics' National Non-Seasonally Adjusted (NSA) HPI Metric Change in HPI March 2025-April 2025 (MoM) +0.4% April 2024-April 2025 (YoY) +2.0% Core-Based Statistical Areas (CBSAs) Ranked by Greatest Year-Over-Year Increases in Starter Tier HPI CBSA Change in Starter Tier HPI Change in Mid-Tier HPI Change in Luxury Tier HPI Pittsburgh +7.6% +2.5% +4.0% Baltimore +5.7% +3.3% +3.3% St. Louis +4.9% +0.9% +0.4% Cambridge, MA +4.7% +5.0% +1.3% Warren, MI +3.3% +2.2% +3.3%