July is typically a peak time for home sales, but the past month has been defined by a slower pace as buyers and sellers wait for economic breaks that will improve the market. It came as no surprise to forecasters and economists when the July Fed meeting resulted in unchanged interest rates. Yet, other small market changes could present opportunities for buyers in some locations.
The number of newly listed homes has increased year-over-year, and homes are spending more time on the market, increasing the chance of price cuts. While location remains a factor in housing availability and related decreasing prices, the Northeast and Midwest are gradually moving toward buyer-friendly conditions.
Buyers entering the market have many more options than during last year’s peak selling period. Sellers facing lower demand may be more willing to cut prices. Yet, the market remains challenging for many budget-conscious buyers hoping for lower costs. For most, location and careful budgeting will play a factor in finding the right home in summer 2025.
July’s Fed Meeting Brought No Changes to Mortgage Rates
All eyes were on the Federal Reserve in July, with hopes for reduced borrowing costs. Yet, as widely predicted, no changes were made. July ended with an average 6.72% rate for a 30-year FRM, which is down a fraction from the week before, but higher than the rate of 6.67% we saw at the beginning of the month.
While the Fed’s decision does not directly define mortgage rates, it influences them, reducing buyer confidence and market activity. With rates remaining steady, buyers with high credit scores and sizable down payments are likely to find the best loan terms.
Home Inventory Growth Slows
With over 1 million active listings in the nation, year-over-year (YoY) home inventory growth has been the big housing story for 2025. July 2025 hit a new post-pandemic high, with a 24.8% rise in YoY inventory. Yet, while newly listed homes grew 7.3% YoY, the increase is 28.9% less than in June.
At the same time, homes are spending an average of 58 days on the market (5 days more than last month). Still, home inventory growth is largely dependent on location, with the South and West steadily gaining more inventory and the Northeast and Midwest trailing behind.
Home Prices Are Largely Dependent on Inventory
The median home sale price reached $435,300 in June, marking a record high for the month and the 24th straight month of increases. However, the national average fails to reflect locational differences. Supply has a major impact on housing prices, and increased time on the market can lead to price cuts.
Home prices are falling in the South, with drops of 3% in the Jacksonville area, 4% in the Phoenix area, and 6% in the Tampa and Austin metro areas. In the Midwest and Northeast, home prices are still growing (albeit slower than in previous months). Home prices are up 4% in the New York City metro area, 3% in the Chicagoland area, and 2% in Minneapolis.
Median home prices in some Florida counties are between $142,000 and $230,000, substantially cheaper than the national average. Meanwhile, homes in Wake County, NC, are an average of $533,000. Several South Texas counties also have average home prices below $200,000, highlighting the difference in affordability across the nation. Home prices that dramatically exceed the average can be found in Middlesex County, MA, where median home values exceed $800,000, in Teton County, Wyoming ($1,500,000+), and along the California coast, where prices frequently exceed $900,000.
What 55+ Homebuyers Need to Know in a Semi-Stagnant Market
While changes seem minimal, the housing market is better in 2025 than it has been in years. Buyers have more choices and negotiating power to get into the home of their dreams. However, prices remain higher and inventory is still lower than pre-pandemic levels. This means buyers need ample preparation to find the best mortgage rates possible.
Seek Downpayment Assistance
55+ adults make up 30% of all renters, which means not all homebuyers in this age group have a home sale to rely on for a down payment. Luckily, homebuyers of all ages can qualify for down payment assistance and low or no-down-payment mortgage loans.
Options for low and no-down-payment loans include:
- VA loans
- USDA loans
- Fannie Mae and Freddie Mac loans
- FHA loans
Down payment assistance is also available from federal, state, and local governments, and other sources. Consider these options:
- National Homebuyer’s Fund
- HomeFirst Down Payment Assistance program (for New York buyers)
- IHDA Access Forgivable loan (for Illinois buyers)
- Good Neighbor Next Door program
Improve Your Credit Score with Rent and Utility Payments
Credit ratings are built on borrowing, which means many responsible adults may not have a high credit score. If you haven’t taken on much debt, like auto loans or credit cards, you may be able to use your rental history to help you qualify for a mortgage. First-time buyers can use their positive rent history to help them qualify for FHA mortgages, and Fannie Mae mortgages consider positive rent histories with 12 months or more of consecutive payments.
Assistance for 55+ Homebuyers
It’s a common misconception that reliance on Social Security or retirement income makes you ineligible for a home loan. In reality, there are many loans designed to meet the unique financial needs of retirees. Along with government-backed home loans, you may qualify for:
- Bank statement loans: Loans that use bank statements instead of W-2s or pay stubs
- Asset depletion loans: Loans that allow borrowers to qualify for mortgages using liquid assets instead of traditional income sources
- Reverse mortgage loans: Loans for homeowners 62 and older that turn home equity into cash without monthly payments. The loan is repaid when the home is sold or no longer the borrower’s primary residence.
Achieving Your Homebuying Goals During Housing Market Challenges
After years of dizzying highs and lows, the housing market is finally stabilizing. More homes on the market mean more opportunities for buyers, and stubborn interest rates are leading to slower sales. Unfortunately, prices are still prohibitive for many buyers. If you’re in the market for your ideal retirement home in 2025, selective shopping will play a role in finding your dream home without destroying your budget.
Luckily, many mature homebuyers have the advantage of utilizing funds from a previous home sale for a down payment and finding affordable homes in age-restricted communities. Whether you’re seeking a home on one of the nation’s sunniest coastlines or a reprieve in a cooler climate, active adult communities often have affordably priced homes and condos along with a range of perks and amenities that help enhance your lifestyle while stretching your budget.
Finding Your Perfect 55+ Home in 2025
Ongoing economic shifts are adding some unpredictability to the housing market. While that may cause hesitation for some buyers, others see this as an opportunity to make a smart move early.
For many active adults, rising home availability may outweigh market concerns. If you’re thinking about finding your ideal 55+ community, 55places.com is here to guide you. Our comprehensive resources can help you explore programs, locations, and communities tailored to your lifestyle. Reach out today and take the first step toward your next chapter!
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