June uptick in home sales caps healthy first half of 2025

Just over 560 homes changed hands through the Spokane Association of Realtors' Multiple Listing Service in June, an increase of about 20 homes from the year-earlier period, association data show. 

June's uptick in activity capped a first half of the year in which sales outpaced the previous year's activity in all six months. 

Overall, through the first six months, nearly 2,730 homes sold through the MLS, up 4.4% from the first half of 2024, during which just over 2,610 homes sold. 

As activity has picked up, the median home price has increased as well, though at a slower pace. Homes sold for a median price of $425,000 during the first half of 2025, up 1.2% from a median of $419,811 in the first six months of the previous year. 

For June alone, the median price was higher, at $435,000, but the percentage increase paralleled that of the year-to-date figure. 

Total inventory rose along with the other figures. At the end of June, just over 1,320 homes were listed for sale through the MLS, representing a 2.4-month supply. By comparison, just over 1,150 homes were on the market a year earlier, for a 2.1-month supply. 

Gap narrows between new, existing home prices

The median price for a new single-family home sold in the first quarter of 2025 is $14,600 above the existing home sale price of $402,300, according to a National Association of Home Builders analysis of U.S. Census Bureau and National Association of Realtors data. 

The average difference over the last five years was $26,700, while the decade prior (2010-2019) saw a much wider gap of $66,000. 

New and existing homes are selling at similar price points for several reasons. Tight inventory continues to push up prices for existing homes, combined with many homeowners who secured low mortgage rates during the pandemic and are now hesitant to sell due to elevated interest rates. Additionally, both new and existing homes experienced dramatic price increases post-pandemic, attributed to higher construction costs and a limited supply.

Homebuilders are adapting to affordability challenges by prioritizing construction on smaller lots, building smaller homes, and offering incentives, according to the report.

Decreased construction spending leaves contractors guessing

Construction spending has decreased 0.4% between March and April and 0.5% over 12 months, marking the first year-over-year decline since 2019, according to a report by the Associated General Contractors of America.

Private nonresidential construction contracted 0.5% in April, including a 0.6% decrease in spending on the largest private segment, manufacturing plants. Private power construction spending also declined 0.7%, while commercial construction, including warehouse, retail, and farm projects, declined 1%.

Private nonresidential investment and homebuilding are declining due to tariffs and trade uncertainty, which is keeping contractors and owners guessing about the costs and demand for upcoming projects.

A decline in construction activity risks making the nation less competitive and likely will hurt economic growth, association officials warn.

Single-family construction grows in small metro areas

Single-family construction growth had modest gains in small metro areas and declines in large metro counties, while apartment growth is shifting to counties with lower population densities, according to the Q1 Home Building Geography Index by the National Association of Home Builders.

Multifamily output has been strong in areas around smaller metro centers, and lackluster in high-density areas, explains NAHB Chairman Buddy Hughes, a homebuilder and developer from Lexington, North Carolina, who adds that economic uncertainties are moderating expectations for single-family housing construction.

Different sized single-family markets registered mixed conditions in the first quarter, however, single-family construction overall likely will follow the same trajectory as in 2024, with little to no growth expected. Increased construction activity is possible in the second half of 2025, depending on interest rates.

ABC's construction backlog indicator declines in May

Associated Builders & Contractors’ Construction Backlog Indicator fell to 8.4 months in May, a decline of 0.3 months from April. 

By industry, commercial and institutional work has an 8.8-month backlog, heavy industrial is at a 7.2-month backlog, and infrastructure has a 6.8-month backlog for May. 

By region, the South has the longest backlog of any region, at 9.4 months; followed by the Northeast, at 8.7 months; while the West and Middle States regions both have 7.5-month backlogs in May.

ABC's Construction Confidence Index reading for profit margins improved, while readings for sales and workforce levels declined. All three confidence readings are above the threshold of 50, an indication of expected growth over the next six months.

Construction employment grows in half of U.S. metro areas

Construction employment increased in 50% of 360 metro areas between May 2024 and May 2025, according to an analysis by the Associated General Contractors of America of new government employment data.

Construction employment decreased over the year in 121 metro areas and was unchanged in 59 areas. Association officials say employment growth has stalled in many parts of the country amid growing uncertainty about tax, tariff, and labor policy.

"This appears to support other indications that investors and developers are delaying or canceling planned projects until they know how severely they'll be affected by evolving tariff and workforce policies," says Ken Simonson, the association's chief economist.

The organization's CEO Jeffrey D. Shoaf notes that construction demand likely will rebound as soon as the federal administration provides certainty on a host of issues.

Condo prices see second biggest drop on record

Median U.S. condo prices fell 2.2% year over year to $354,100 in May—the second largest drop in records dating back to 2012, according to a Redfin analysis based on Multiple Listing Service data. 

Condo prices are falling because there are roughly 80% more condo sellers than buyers, increased homeowners’ association fees, and soaring insurance costs. Additionally, a lot of condo associations don't allow buyers with FHA loans, which limits sales.

"It's a slow housing market across the board, but condos have been hit particularly hard," says Aditi Jain, a Redfin Premier real estate agent.

Sales of single-family homes have slightly increased 0.5% year over year in May to $462,206, while condo sales have dropped 11.9% in the same time period—a drop three times larger than single-family home sales. Both single-family homes and condo sales for the month fell to the lowest level since 2020.

Home sales, prices climb in Kootenai County

So far this year, 1,166 single-family homes have sold in Kootenai County, a 3.7% increase compared to the same time last year, according to the June 2025 Market Snapshot from Coeur d’Alene Regional Relators.

The median home price in June was about $544,400, a 3.5% increase from June 2024, and roughly $1,000 more than the median home price in May.

There were just over 1,200 active residential listings in Kootenai County as of July 3, an 8.1% increase over last year’s inventory at the same time. In May, there were 1,134 active residential listings.

Homes stayed on the market for an average of 95 days in June, a 1.1% increase over the year-earlier month.

Homebuyers' down payments decrease by about 1%

The typical U.S. homebuyer’s down payment is $62,468, down by roughly 1% year over year, the first annual decline in nearly two years, Redfin News reports.

The typical U.S. homebuyer puts down 15% of the purchase price, essentially unchanged from 15.1% a year earlier. The median U.S. down payment has settled around 15% for the last four years, besides a dip into the 10% range in early 2023, whereas before the pandemic, the typical down payment was around 10%.

As the housing market shifts towards buyers, FHA and VA loans are becoming more common, with just over 15% of mortgaged homebuyers using an FHA loan, and just over 7% who use a VA loan, up from last year.

Down payments are declining even though home prices overall are increasing because not all homebuyers make a down payment, as nearly one-third of buyers pay in all cash. Additionally, homebuyers with mortgages likely purchased cheaper homes, which contributes to reduced down payments and explains why down payments stayed flat by percentage, but declined by dollar value.