The US housing market continues to slow down, with home sales at historic lows due to economic uncertainty and high mortgage rates. Despite a 1.8% increase in pending home sales in May, the numbers remain record-low. Existing home sales fell year-over-year, marking the slowest pace since 2009.
Home prices are rising at the slowest annual pace in two years, and housing starts dropped nearly 10% in May. The situation has led to higher-than-normal cancellation rates and “cold feet” from potential buyers.
The main issue is economic uncertainty, with sellers being held back by inflated home values. Many have seen their Zestimates rise by 50% or more since 2020, making them less willing to lower prices.
Furthermore, ICE enforcement actions at home building sites are further impacting the market. Home builders report that visits from ICE result in “no-shows” among workers, even those who are lawfully present, due to fear of being caught by federal authorities.
Industry experts warn that the housing industry is already facing numerous challenges and didn’t anticipate how many more it would face with White House policies this year.
Source: https://www.axios.com/2025/06/27/ice-trump-tariffs-home-sales