October 2025 housing update: Inventory growth steadies inspection demand

 

September’s housing data shows a market shifting gears – fewer closings, more listings, and contracts holding strong. For inspectors, that balance means steady work as sellers stay motivated and buyers take advantage of increased inventory. 

Sales and inventory 

  • Existing home sales totaled 357,000 in September, down –5.1% from August but +8.2% YoY 
  • Year-to-date sales are now down –0.2% 
  • Active listings reached 1.56 million homes (+21.9% YoY), marking the largest supply since 2020, according to HouseCanary 
  • Month’s supply climbed to 5.49, edging toward a buyer’s market 

Contracts and pricing 

  • HouseCanary reports 283,409 homes went under contract, up +11.0% YoY 
  • Price cuts rose +21.6% YoY, remaining at their highest level since 2020 
  • The median closed price increased +3.5% YoY to $433,239 
  • The national median existing home price was $415,200, a +2.1% YoY gain 
  • Regionally, the Midwest (+4.7%) and Northeast (+4.1%) led, while the West (+0.4%) remained flat 

Mortgage rates 

  • Mortgage rates averaged 6.6% in Q3 
  • Fannie Mae now projects rates to decline more gradually to 6.2% by early 2026 and 5.9% by the end of the year, while the Mortgage Bankers Association expects rates to stay near 6.5% through 2028 

Current forecasts 

Forecasts for 2025 home sales (October ‘25 forecast) 

  • *NAR: +3.0% (4.18 million existing home sales vs. 4.06 million)   
  • MBA: +1.6% (4.84 million total home sales vs. 4.76 million)   
  • Fannie: -0.2% (4.74 million total home sales vs. 4.75 million)     

Forecasts for 2026 Home Sales (October ’25 forecast)   

  • *NAR: +14.0% (4.77 million existing home sales vs. 4.18 million)   
  • MBA: +5.0% (5.08 million total home sales vs. 4.84 million)   
  • Fannie: +8.9% (5.16 million total home sales vs. 4.74 million)     

MBA Forecast for Mortgage Originations (October ’25 forecast)   

  • 2025** Total Mortgage Originations: +18.4% (5.41 million loans vs. 4.57 million)   
    • Purchase: -2.1% (3.45 million loans vs. 3.53 million)   
    • Refi: +87.3% (1.96 million vs. 1.05 million)   
  • 2026 Total Mortgage Originations: +7.6% (5.82 million loans vs. 5.41 million)   
    • Purchase: +7.0% (3.70 million loans vs. 3.45 million)   
    • Refi: +8.5% (2.13 million vs. 1.96 million)     

* NAR forecast is from July 2025  

What it means for inspectors 

For HIP inspectors, the story is clear: more listings and strong contract activity could contribute to keeping inspections steady, even as overall sales dip. Motivated sellers and flexible buyers may mean more inspections on tighter timelines – and more opportunities to stand out with professional, customizable reports. 

As forecasts point to a 2026 recovery, the groundwork you lay now – refining templates, strengthening relationships, and streamlining operations – could pay off when transaction volume rises again. 

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