The spring 2025 housing market is underwhelming, with local inventory rising by nearly 40% and sellers more open to negotiation. Although mortgage rates are stabilizing, economic uncertainty has affected buyer confidence significantly. Real estate agents Clint Moore and Michelle Perry highlight the impact of fluctuating stock markets on buyer finances, especially for first-time home buyers, who face increased costs as rates rise. Sellers are adjusting their expectations due to market volatility, leading to more price reductions and contingent offers as the market seeks equilibrium.
Clint Moore, a real estate agent with Intero, shares what he feels are a few of the major hurdles to the spring market. "Confusion over economic policy and instability in the stock market has adversely impacted the market to a degree," Moore said. "Whether their downpayment has shrunk considerably because of declining stock values or they aren't as confident about job security, many buyers are feeling jittery."
Michelle Perry, a real estate agent with Sereno, also notes the turmoil in the stock market earlier this spring led to volatility on the mortgage rate side as well. "It's been a rollercoaster, especially for first-time home buyers. Every penny counts for them," Perry said. "We have a wonderful small family ready to buy. They're utilizing their retirement accounts to get to that first step of 3.5% down on an FHA loan.
Fortunately, as May concludes it seems like mortgage rates have stabilized somewhat. For sellers, all this uncertainty in the market has forced them to reset their expectations. Price reductions and contingent offers are more of the norm now as the market recalibrates.
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