JUNE – MARKET INSIGHT

In regard to Real Estate moves, I think there are some very important things to consider RIGHT NOW!   

If you are one of the millions of people who want to make a move, but are waiting for more stability, lower interest rates, etc., please consider the following as you ponder what is best for you and your family.   

Now may be a strategically opportune time to engage in the housing market. Recent national trends have created a rare window of conditions that could benefit both homebuyers and sellers.  

The market has cooled to historic lows. In 2023, U.S. home sales fell to just 4.09 million – an 18.7% drop from the year prior and the fewest home sales in nearly 30 years (since 1995). For context, during the post-pandemic boom in 2021, roughly 6.12 million homes were sold nationwide. This means transaction volume is at historic lows, a sign that many buyers and sellers have been sitting on the sidelines.  

What we know for sure is that they will only wait on the sidelines for so long. People MUST move eventually due to life circumstances, such as marriage, divorce, death, births, job changes, and much more.   

In every single downturn, there has ALWAYS been a bounce back.  

The vast majority of people participate in that bounce when everyone else does, thereby eliminating any potential benefit they may have had if they had moved before the herd did.  

Warren Buffett famously encourages people to get into the stock market when others are fearful – I think this applies to our current situation.   

Barbara Corcoran recently said “When things are uncertain (stock market, interest rates, politics) buyers hesitate before committing to a new home. That makes uncertain markets the best time to buy.”  

Here are some benefits of acting NOW:  

With fewer people actively buying and selling, those who do enter the market now face less competition and more breathing room.   

Inventory – the number of homes for sale – is gradually improving. As of March 2025, we have about a 4-month supply of homes on the market, up significantly from the extreme shortage of roughly a 1.8-month supply at the height of 2021.  

You’ll find prices have also stabilized after the rapid run-up of past years. The national median home price barely increased (under 1%) in 2023 and in early 2025 it has even ticked down slightly year-over-year. We are hearing about significant price reductions and buyers right now do not have to typically compete with dozens of other buyers. As a buyer, your ability to negotiate price reductions, interest rate buydowns, and other concessions has never been better.   

As for homeowners, this means you likely still have substantial equity (the typical homeowner gained about $147,000 in wealth over the last five years of rising prices), and for buyers, it means a chance to purchase without chasing a rapidly escalating market.  

That said, current conditions won’t last forever. The housing market’s pause is building up what we call pent-up demand. Consider that the U.S. population has grown by 70 million people since 1995, yet annual home sales remain stuck around 1995 levels – a clear indicator that many would-be buyers are waiting in the wings.   

Once mortgage rates stabilize or dip and affordability improves even a little, a lot of these sidelined house hunters will likely jump back in. Industry experts are already anticipating a surge. Redfin’s economists predict that home sales will rebound in 2026 largely due to this pent-up demand finally being unleashed. 

We’ve seen hints of this future burst: when interest rates dipped slightly late last year, mortgage applications for home purchases spiked over 20% in a matter of weeks. In fact, even now there are signs of renewed buyer interest – Redfin’s Homebuyer Demand Index is about 7% higher than it was a year ago. Many buyers have adjusted to today’s rates and are “pushing forward and negotiating for good deals” on homes that sat on the market during the slow months.   

This tells us one thing: the moment conditions improve, the market could heat up quickly.  

What does this mean for you? It means that acting sooner rather than later could be advantageous. Whether you’re aiming to buy, sell, or both, today’s market offers opportunities that may not be available once the tide turns. 

Please seriously consider your advantages if you want to make a change. In today’s market YOU can command a huge advantage, but as soon as things slightly change you will lose that advantage.   

If you are thinking about a change, I would greatly appreciate an opportunity to interview to be the agent who represents you in making your best deal.