The news: The housing market remains stalled, with several indicators suggesting conditions are unlikely to improve soon.

Home prices are rising. Prices rose 3.8% YoY in September, the fastest annual increase since June 2025, per Redfin.

So are mortgage rates. The average rate on a 30-year fixed mortgage reached 7.4% as of October 20, up from 7.19% a month earlier and 6.17% a year earlier, per Mortgage News Daily.

Home construction is slowing. Single-family housing starts fell 7.4% YoY in September to their lowest level since September 2025, per the US Census Bureau. Building permits, a leading indicator of future construction, declined 3.0%.

Fewer homes are changing hands. Pending home sales fell 11.3% YoY in September, per the National Association of Realtors.

Why it matters: Fewer home sales mean fewer shoppers in the market for big-ticket items like appliances, TVs, and furniture, as well as home improvement products like paint.

Rather than wait for the housing market to recover, retailers need to give current homeowners reasons to spend. Best Buy, the exclusive national retailer for RGB LED TVs, used the start of football season to promote the superior picture quality of next-generation sets from Samsung, Sony, LG, TCL, and Hisense to give shoppers a compelling reason to upgrade. Williams-Sonoma is taking a different approach, using fresh product offerings and collaborations to inspire purchases, including new Pottery Barn collections with designer Ashley Stark and vintage specialist Big Daddy’s Antiques, and Mark & Graham’s partnership with New York City Ballet on personalized holiday gifts.

Implications for retail: The housing market is unlikely to rebound soon, so retailers need other ways to spark spending. With consumers still feeling stretched, promotions and financing can help make purchases more affordable, while product upgrades and fresh designs can give shoppers a compelling reason to buy even when they aren’t moving.

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