In the current real estate landscape, while new-home builders recorded strong activity—posting roughly 40% more inventory in 2023 than in 2019—existing-home sellers have sharply curtailed listings. Established neighborhoods witnessed a 40% drop in existing-home inventory over the same period. This supply squeeze has fueled multiple-offer scenarios and propelled prices to unprecedented levels.

Inventory Trends: A Glimmer of Hope for Buyers

Recent data hints at a softening in the market: this spring saw a 15% uptick in listings compared to the same timeframe last year. Nonetheless, elevated mortgage rates are still dampening affordability, thwarting any immediate rebound in sales.

On the economic front, a welcome slowdown in inflation—from a two-year high of 9% down to 3.3% in May—may nudge the Federal Reserve toward a less restrictive monetary policy stance, potentially easing borrowing conditions over time.

Addressing the Role of Institutional Buyers

Some states are weighing policy interventions to safeguard housing for owner-occupants rather than large-scale, Wall-Street–backed investors. Proposed measures include an excise tax or barring interest-expense deductions for institutional buyers—specifically those acquiring 200 or more single-family rentals.

Navigating the Renter vs. Owner Dynamic

Acknowledging that not everyone aspires—or is able—to own a home, Yun emphasizes the long-term risks of a shifting renter-majority society. Such a trend could lead to populist housing policies—like rent control or eviction moratoria—even when renters fall behind on payments. Instead, he recommends more constructive solutions, such as rental assistance programs—drawing a parallel to how food stamps address hunger more effectively than price controls.

He cautions against following the path of countries like Venezuela, where such heavy-handed interventions have exacerbated economic turmoil.

Record-Setting Prices

As of May, the median existing-home price across all housing categories reached $419,300, marking an all-time high and a 5.8% year-over-year increase from $396,500. Price gains were consistent across all four U.S. regions.

Key Takeaways

• Sharp contrast in inventory: New listings up 40%, existing-home listings down 40% since 2019.
• Listings on the rise: A modest 15% increase this spring notes a potential shift—but mortgage rates remain an obstacle.
• Policy tools under discussion: Targeted taxation and disincentives aimed at institutional investors could help rebalance ownership.
• Policy philosophy matters: Aid (like rental subsidies) trumps restrictive mandates (like rent control) for long-term stability.
• Home prices aren’t easing: May’s median price hit a record high with gains nationwide.

Source: REALTOR® Magazine
“On Inventory and Policy”
National Association of REALTORS®
Reprinted with permission

Inventory Is Rising—but Still Below Pre-COVID Levels

Homebuyers are starting to breathe easier as housing supply begins to recover. Listings are up nearly 20% compared to last fall—great news for buyers. Still, overall inventory remains about one-third below the levels seen before the pandemic.

Why the uptick? Life and career changes are prompting more homeowners to list. And as time passes, more inventory naturally comes onto the market.

Lower Rates Bring Renewed Affordability

Thanks to falling long-term bond yields—partly driven by expectations of six to eight Fed rate cuts between September 2024 and well into 2025—mortgage rates have trended downward. The 30-year fixed rate has dropped from the high 7% range in spring to the low 6% range by fall, translating into savings of around $300 per month for the typical borrower.

This trend is unfolding independent of the Fed’s moves; bond markets are pricing in multiple expected rate reductions. No matter who occupies the White House in 2025, Americans could benefit from lower borrowing costs.

Politics May Surprisingly Fuel More Home Listings

A fascinating finding from The Journal of Finance: homeowners are 4% more likely to put their houses up for sale if a neighbor with differing political views moves in. Could the heightened political climate be nudging more listings forward? It’s an intriguing possibility.

First-Time Buyers Making a Comeback

First-time buyers made up just 26% of home purchases in August 2024—tying a low not seen since November 2021. This is a slight dip from 29% in July 2024 and August 2023.

What This Means for First-Time Buyers

• More Listings, More Options: Inventory is finally rebounding—giving first-time buyers more homes to choose from, even though it’s not back to pre-pandemic levels just yet.
• Lower Rates, Better Buying Power: As borrowing costs dip, first-timers stand to gain significantly—especially on monthly affordability.
• Subtle Social Shifts at Play: Believe it or not, political differences between neighbors may be quietly influencing homeowners to list. That could work in favor of buyers waiting on the sidelines.
• A Long-Awaited Opportunity: With affordability improving and more listings emerging, first-time buyers might find now to be the perfect time to step in.

If you’re a first-time buyer—or working with one—this evolving landscape is worth watching closely. More homes, better rates, and shifting social cues are creating a rare combination of opportunity.

Would you like help interpreting local inventory trends, mortgage rate comparisons, or first-time buyer incentives? I’d be happy to assist!

Source: REALTOR® Magazine
“Retreat for First Timers”
National Association of REALTORS®
Reprinted with permission

After what feels like an eternity of economic uncertainty, rising interest rates, and sky-high home prices, we finally have some good news to share: the real estate market is showing signs of real, sustainable improvement. Yes, things are looking up—and not just a little.

If you’ve been sitting on the sidelines waiting for the right time to buy or sell, or if you’re a real estate professional trying to read the tea leaves, here’s what you need to know about what’s shifting—and why there’s real cause for optimism.

1. Mortgage Rates Are Easing (Finally)

Let’s be honest—mortgage rates have been the main villain in the housing story over the past two years. As the Fed tried to tame inflation, interest rates skyrocketed, pushing the cost of borrowing through the roof and sidelining millions of would-be buyers.

But now? We’re seeing a notable cooling.

The Fed has signaled a pause in rate hikes, and even hinted at potential cuts depending on how the economy performs. As a result, mortgage rates have started to trickle downward. While we’re not back to the ultra-low rates of the pandemic era (and we may never be), today’s numbers are far more manageable—and buyers are noticing.

2. Home Equity Is Holding Strong

One of the biggest surprises in this whole market slowdown has been how resilient home prices have remained. Despite fewer transactions, values haven’t fallen off a cliff. In fact, many homeowners have gained equity thanks to tight inventory and regional growth.

That’s great news for sellers who worried they’d missed the market peak. If you’re sitting on equity, you’re in a strong position to upgrade, downsize, or even tap into your home’s value for other investments.

3. Inventory Is (Slowly) Rebuilding

Inventory has been the Achilles’ heel of this housing market. There simply haven’t been enough homes to meet demand. That’s starting to change.

Builders are getting back to work, and more homeowners are warming up to the idea of listing. As inventory increases, we’ll see a healthier balance between buyers and sellers—less frenzied competition, more negotiating power, and better opportunities all around.

4. Commercial Real Estate Is Adapting—and Innovating

It’s not just the residential market that’s seeing a shift. Commercial real estate—particularly office space—has been through a reckoning since the rise of remote work. But instead of collapsing, the sector is adapting.

We’re seeing creative reuse of space, more flexible leasing terms, and growth in areas like industrial, multifamily, and mixed-use development. Forward-thinking investors are finding ways to pivot and profit in this new landscape.

5. Policy and Regulation Are Playing a Role

Housing affordability is top of mind for policymakers, and there’s momentum behind several legislative efforts aimed at addressing supply and affordability. From zoning reforms to first-time homebuyer incentives, there’s hope that the next few years will bring meaningful support for both buyers and builders.

So, What Does This Mean for You?

If you’re a buyer, it may be time to re-engage. With mortgage rates dipping and more homes coming on the market, you’ll have more choices—and potentially better deals.

If you’re a seller, you haven’t missed your window. Equity is high, demand is steady, and with the right strategy, you can still command a great price.

If you’re a real estate pro, this is your moment to educate, advise, and lead. Clients need trustworthy guidance now more than ever.

Bottom Line: There’s Light at the End of the Tunnel

While we’re not claiming a full-blown boom is upon us, the indicators are clear: the worst of the housing crunch may be behind us. The next chapter in real estate won’t look exactly like the last one—and that’s a good thing.

With cautious optimism and a proactive mindset, buyers, sellers, and professionals can all find opportunities in the shifting landscape. Things are indeed looking up.

Want to explore your options in this evolving market? Reach out—we’d love to help you navigate your next move.

Source: REALTOR® Magazine
“Things Are Looking Up”
National Association of REALTORS®
Reprinted with permission

Housing Market Update: A Little Spring Bump in Home Contracts 🌱🏡

June 26, 2025 — It looks like the spring housing market finally found a bit of its footing. After a choppy few months, pending home sales ticked up 1.8% in May, giving buyers, sellers, and real estate pros alike a small reason to smile. That’s also 1.1% higher than this time last year, so we’re starting to see some positive momentum.

If you’ve been following the ups and downs lately, you’ll remember that April was rough—with contract signings dropping 6.3%—so May’s bounce is a welcome change.

What’s Driving the Shift?

According to Lawrence Yun, Chief Economist at NAR, a few things are helping stabilize the market:

• Steady job growth
• Higher incomes
• And most importantly: mortgage rates that are still bouncing around, making buyers extra cautious.

Still, there’s hope. If rates ease up a bit in the second half of the year, we could see a stronger finish to 2025. For reference, the 30-year fixed mortgage rate averaged 6.77% the last week of June—not exactly low, but not panic-inducing either.

Bonus: Existing-home sales were up slightly in May too—by 0.8%, the first increase since February.

What’s Happening Around the Country?

The picture varies depending on where you are. Here’s a quick regional breakdown:

• 🧭 Northeast: A slight boost in activity—pending sales rose 2.1% from April. But with tight inventory, over 25% of homes are still selling above asking. Year-over-year, they’re down just 0.5%.
• 🌽 Midwest: Pretty flat month to month (+0.3%), but a modest 2.6% improvement compared to last year.
• ☀️ South: Contracts rose 1.0% in May and 2.0% year over year. Inventory is growing, which gives buyers a bit more wiggle room when negotiating.
• 🌄 West: This region saw the biggest jump—up 6.0% from April—but still slightly behind last year (down 1.2%). Inventory gains are helping, especially in places that were red-hot just a couple years ago.

Bottom Line

✅ Buyers are still out there—just more price- and rate-sensitive than before.
✅ Inventory is improving (up 20% from last year!), especially in the South and West.
✅ If mortgage rates dip later this year, expect more activity to follow.

So while it wasn’t the busiest spring ever, things are heading in the right direction—and that’s something we can all feel good about.

Source: REALTOR® Magazine
“Contract Signings Ticked Up Slightly, Capping Off a Sluggish Spring”
National Association of REALTORS®
Reprinted with permission

Homes on the market have surged—up nearly 20% compared to a year ago—offering a glimmer of hope in a market long hindered by limited inventory. While this uptick slightly eases price pressures in some regions, supply still falls well short of demand in many markets, keeping a large group of prospective buyers locked out. 

Who’s Disadvantaged in Today’s Market?

Nadia Evangelou, Senior Economist and Director of Real Estate Research at NAR, points out that middle-income buyers face the greatest affordability challenges. Despite experiencing strong recent gains, many remain excluded—over half of the current listings remain unaffordable to this group. Governments have begun to respond with zoning reforms and construction incentives, but more aggressive and widespread action is needed. Evangelou estimates that hundreds of thousands more homes priced under $260,000 are required to restore market balance. 

Unequal Access Across Income Levels

There’s a sharp contrast between income groups: buyers earning under $50,000 can afford fewer than 1 in 10 listings, starkly limiting opportunities for first-time and lower-income buyers. This inequality has ripple effects throughout the housing market—impacting everything from move-up purchases to overall transaction volumes. 

Builder Response: Smaller Isn’t Enough

Builders are adapting by constructing smaller homes—a promising shift that began in 2024. The current median square footage is the smallest in over a decade. Yet, affordability remains difficult to achieve due to high land and materials costs, along with zoning constraints; building homes under $260,000 often doesn’t add up financially. 

Regions Making Headway: Raleigh and Des Moines

Some metros are bucking the trend. Raleigh, NC, and Des Moines, IA, are making strides by boosting housing supply across price categories and adopting flexible local policies—making them promising models for other areas seeking affordability. 

Long-Term Solutions for Lasting Relief

Though there’s no magic fix, Evangelou highlights a few key strategies:

• Reform zoning and land use policies, including embracing inclusionary zoning, smaller lots, duplexes, and infill development to reduce construction barriers.
• Provide incentives—such as tax credits or favorable financing—to builders expanding affordable options.
• Support down payment assistance programs, enhancing access to homeownership for buyers with good credit who lack savings.
• Track progress with data tools, like the REALTORS® Affordability Distribution Score, helping pinpoint successful approaches in metros like Raleigh or Grand Rapids that others can emulate.

Will Higher Inventory Ease Prices?

In markets with growing inventory—especially in parts of Florida, the South, and Midwest—price growth is beginning to slow, offering relief to buyers. However, in expensive coastal areas, improvements remain limited, unless more affordability-oriented construction is launched. National Association of REALTORS®

The Persistent Challenge for First-Time Buyers

More listings help—but not if they remain out of reach. For many first-time buyers, particularly those with lower incomes, options under $200,000 remain scarce, limiting entry into homeownership regardless of overall inventory increases. 

The Role of Down Payment Assistance

Evangelou emphasizes that while down payment assistance (via grants or low‑interest loans) helps make homeownership attainable, it must be paired with affordable housing supply. Otherwise, well-prepared buyers still end up competing over the same limited offerings. 

Is There Hope for the Housing Crisis?

Yes—but progress remains uneven. Inventory growth is a positive sign, but if new listings are predominantly high-end homes, affordability won’t improve. So while the situation is moving in the right direction, the crisis is far from over. 

How Real Estate Professionals Can Help

NAR members play a crucial role: guiding buyers on what’s financially realistic, managing expectations, and connecting them to resources like down payment assistance. In a competitive housing environment, having knowledgeable support can make all the difference. 

Summary

Source: REALTOR® Magazine
“Q&A With Economist Nadia Evangelou: Solving Housing’s Shortfall”
National Association of REALTORS®
Reprinted with permission

What Is Mortgage Forbearance?

Mortgage forbearance is a temporary arrangement with your lender that allows you to pause or reduce mortgage payments when facing a short-term financial hardship—like job loss, illness, or natural disaster. While forbearance offers breathing room, it doesn’t cancel what’s owed. Deferred payments and accrued interest must eventually be repaid under agreed terms.

Why Forbearance Became So Prominent During COVID-19

The COVID-19 crisis propelled mortgage forbearance into the spotlight. Under the CARES Act, roughly 8 million homeowners paused their payments—helping most avoid foreclosure. This stands in stark contrast to the 2008 recession, when such relief options were less accessible.

Forbearance Has Shrunk—Steady, But Still There

By the end of March 2025, only about 180,000 U.S. homeowners were in forbearance—just 0.36% of all mortgages—down sharply since the pandemic peak. Many cases stemmed from temporary crises—like job loss or divorce—while about 21% were due to natural disasters.

Exit Paths After Forbearance

Most homeowners leave forbearance with a repayment strategy in place. According to Mortgage Bankers Association data:

• 77% exit with a “workout” plan—options like loan deferrals, resumed payments, or modifications.
• Only about 10% choose to sell their home upon exiting forbearance.

How Forbearance Shapes Housing Supply and Home Values

The impact of forbearance extends beyond individual homeowners:

1. Preventing a Wave of Foreclosures
   During the pandemic’s early stages, forbearance helped avert massive foreclosure waves, stabilizing the housing market.
2. Supply Relief, Not a Glut
   If even a portion of homes exiting without workout plans go into foreclosure—say, one-third—it’d only add a modest supply to the market, helping ease housing tightness rather than destabilizing prices.
3. Supporting Home Values
   The Federal Reserve noted that by allowing financially strained homeowners to stay put, forbearance helped limit housing supply and buoyed prices—adding around 0.6 percentage points to home price growth between April and August 2020.

For Real Estate Pros: What Sellers and Agents Should Know

• Home Sellers in Forbearance
  Sellers must fully understand the total payoff obligation—it includes the original loan plus deferred payments, fees, and interest. Be transparent with your agent about any forbearance status to avoid surprises.
• Agents Need Strategic Counseling Tools
  Real estate professionals should:
  • Guide clients toward servicer-provided advice and options.
  • Help structure sale plans that cover forbearance balances.
  • Manage expectations to avoid sale delays or fallout.

Bottom Line: Forbearance as a Stabilizing Tool

Forbearance remains a vital safety net—helping homeowners through temporary setbacks and preventing foreclosures from overwhelming the housing market. While it’s not a cure-all, combined with job recovery and strong home values, it’s helped the market avoid the severe consequences seen in previous downturns.

Source: REALTOR® Magazine
“Mortgage Forbearance and Its Impact on Home Sales”
National Association of REALTORS®
Reprinted with permission