Buyers gain potential advantage amid market uncertainty

IRVINE, Calif., June 26, 2025 – Cotality, a leading global property information, analytics, and data-enabled solutions provider, today released its latest findings on the housing and mortgage markets.

Amid the economic and political uncertainty, the housing market is benefiting from increased inventory and slower price growth, which could give potential homebuyers an advantage. However, buyers are still encountering high prices, which is deterring some from completing their purchase offers.

Cash has been prominent in recent housing transactions, but this year, fewer buyers are purchasing that way. Meanwhile, existing homeowners maintain strong equity positions in their homes, utilizing their accumulated wealth to mitigate financial anxieties. Despite concerns regarding mortgage performance, the proportion of loans facing delinquencies remains stable.

Housing Market Trends

1. Pending sales continued to rise in May and are now 10% above May 2024. However, closed home sales have not followed suit and posted a 14% year-over-year decline in May. The difference between rising pending sales and falling closed sales reflects challenges that homebuyers are facing that leads to contract cancellations, including high interest rates, high insurance costs, high property taxes. and home prices that have increased sharply in recent years. Sellers continue to de-list their properties at the highest rates in 15 years. In April 6.2% listings were delisted, highest rate since 2011.

2. The median price of a listed home  continued to rise nationally in May, climbing to $495,000, up 5% from last year and 1% from last month. Meanwhile the median closing price has leveled off at $450,000, showing no change compared to last May or the month prior.  Listing and sale prices are now $45,000 apart, which further illustrates the divide between buyers and sellers in the current housing market and is twice as large as the difference seen at this time last year.    

3. Single-family rents increased by 2.9% year over year in April for the second consecutive month. Rents increased the most in the Northeast, Midwest, and Mid-Atlantic. They increased the least in the South, which is a similar pattern to home price growth. Stronger rent growth in some markets could be an indication that the limited supply of for-sale homes, which is pushing  for-sale prices up, is spilling over into the rental market as would-be buyers remain renters.

4. Investors are maintaining their strong market presence, making 30% of single-family home purchases so far in 2025. About half of these are small investors who own less than 10 properties. The high investor share shows they are more resilient than owner-occupied buyers to the current levels of unaffordability. This reflects the heavy preference of investors to buy homes all-cash, shielding them from high interest rates.

Mortgage Market Trends

5. The share of cash sales fell to 36% for the first five months of 2025, a 2-percentage point drop from the same month a year ago (Figure 1), and the lowest for this time of the year since 2021. Sales of newly constructed homes had a lower cash share (14%) than resales (37%), but both sale types posted similar decreases from a year earlier. While the share of cash sales slowed, it remains  elevated, due to the increased  investor presence in the home purchase market.

6. The share of mortgages in any stage of delinquency fell to 2.8% in April from a recent high of 3.2% in December 2024. Seriously delinquent mortgages (90 days-past-due or more) fell back to 0.9% in April 2025, after spending six months at 1%. The decrease in the overall delinquency rate is mostly attributed to a drop in the share of loans that were 30 days past due. The share of mortgages in foreclosure held steady at 0.3% in April.

7. Serious delinquency rates for Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA), and conventional loans were 3.6%, 2.3%, and 0.65%, respectively. Serious delinquency rates for FHA loans are five times higher than for conventional mortgages. VA loans are not far behind with three and a half times more serious delinquencies than conventional alternatives.  

8. Mortgage delinquency rates vary significantly by region. Louisiana (1.87%) had the highest serious delinquency rate, followed by Mississippi (1.57%), New York (1.5%), and Florida (1.43%). In general, Southern and Eastern states experienced higher delinquency rates, while Western states saw lower delinquency rates.

9. The current average loan-to-value ratio on outstanding mortgages is 43%. This means that borrowers could tap 37% of the value of their homes while keeping this ratio below 80%. That 37% converts to a total of $11 trillion or $193,000 per borrower. However, with interest rates still holding in the 6.5%-7% range, there is little to entice borrowers to tap into their equity using a cash-out refinance mortgage.

10. The average equity that a borrower has in their home fell $4,000 nationwide from Q1 2024 to Q1 2025. This decrease was largely driven by the price declines in Texas and Florida, where the average borrower lost $23,000 and $26,000 in equity, respectively. Homeowners are still in a solid position though, with the average borrower having over $300,000 in equity in their home, $120,000 more than they did at the start of the decade.

Figure 1: Cash sales share eased 2 percentage points in 2025

Data source: Cotality, June 2025

About Cotality

Cotality accelerates data, insights, and workflows across the property ecosystem to enable industry professionals to surpass their ambitions and impact society. With billions of data signals across the life cycle of a property, we unearth hidden risks and transformative opportunities for agents, lenders, insurers, governments, and innovators. Get to know us at cotality.com.

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