The U.S. housing market is seeing renewed buyer activity, but also a rise in canceled deals. According to Redfin, 14.9% of pending home sales fell through in June—up from 13.9% a year earlier. Inspections, financing concerns, and shifting expectations are causing many buyers to back out, while some sellers delay listings to avoid price cuts.

Buyers have more leverage now thanks to rising inventory and tempered demand. Deals are taking longer and often involve more negotiation. Redfin forecasts home prices to drop 1% by the end of 2025, with mortgage rates holding near 6.8%.

Meanwhile, Houston continues to attract global attention. HAR.com sees over 8 million monthly users worldwide. From April 2024 to March 2025, foreign buyers purchased $1.1 billion in local real estate. Top origins include Mexico, Nigeria, Canada, China, and Colombia, with 46% of international buyers paying all cash.

Generational wealth is shaping the market. Baby boomers now hold nearly 40% of U.S. housing wealth, compared to Gen X (30%), millennials (20%), and Gen Z (9%). This shift means more aging in place, inherited properties, and multigenerational buying decisions.

New trends also reveal:

• Rental dominance: Blackstone owns interests in over 274,000 rental units, leading the student housing sector.
• Second homes decline: Down to 5.7 million in 2023 from 7.15 million in 2020.
• Smaller lots, higher prices: In 2024, 65% of new lots are under 1/5 acre, up from 48% in 2005.
• West University Place, TX ranks as the second wealthiest U.S. suburb after Scarsdale, NY.
• Affordable housing cuts: A proposed $27 billion reduction in rental assistance could slow development and squeeze low-income renters.

As market dynamics shift, working with a trusted real estate professional is key. Whether you’re buying, selling, or planning your next move in Houston, we’re here to help.

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