Confidence — A fleeting feeling

It’s officially selling season in real estate!

There’s no denying that sunshine helps sell homes—just compare the turnout at an open house on a rainy day to one on a bright, sunny afternoon. Inventory is slowly increasing, though it remains about 20% lower than pre-2020 levels. Home prices have ticked up slightly over the past month. The single-family home market remains solidly in seller’s territory, while attached properties are beginning to edge closer to a buyer’s market—something we haven’t seen in quite some time.

The major factors shaping the market right now continue to be inflation, affordability, and elevated interest rates. That said, mortgage rates have recently dropped to their lowest levels since November of last year, which has suddenly made homeownership possible again for millions who wouldn’t have qualified just a week ago. However, qualification doesn’t always translate to action. Many buyers are holding off, citing global uncertainty, inflationary pressure on everyday goods, and a softening economy. Confidence is critical when making one of life’s biggest financial decisions, and right now, that confidence is still rebuilding.

I believe that even a modest stretch—just 3 to 4 months—of sub-6% rates could be the catalyst needed to unlock a significant amount of inventory, particularly from the Boomer generation who have been waiting for the right time to list.

If you’re thinking about buying, selling, or just want to talk strategy, I’m always happy to connect. Let’s chat!

“However, qualification doesn’t always translate to action. Many buyers are holding off, citing global uncertainty, inflationary pressure on everyday goods, and a softening economy. Confidence is critical when making one of life’s biggest financial decisions, and right now, that confidence is still rebuilding.”

— Brendan Gail

Market Profile - April 2025

HOT TOPICS

Would you like a home valuation and neighborhood report every month?
Those receiving these have really enjoyed them! If you’d like a free home report every month, all I need is your address and an email for you. It’s a great way to track home values, loan information, and know exactly what’s being bought and sold in your area Send me an email brendan.gail@kw.com to be added!
Retail sales rebound but remain sluggish
Retail sales in the U.S. increased slightly in February, rising just 0.2%—less than the 0.6% economists expected. Weak spending at gas stations, auto sales, and restaurants held growth back, but a strong job market and wage increases could keep spending steady in March.
3. Inflation slows down in February
Consumer prices rose 2.8% from last year, showing a slight slowdown after months of increases. While lower gas and food prices helped ease inflation, costs for hospital care, insurance, and airfare remained high, which could push up future inflation reports.
4. Small business optimism declines amid uncertainty
Confidence among small business owners fell in February, with concerns about tariffs and government layoffs weighing on sentiment. While optimism remains above historical averages, continued trade tensions could make businesses even more cautious in the coming months.
5. Consumer sentiment hits a 28-month low
Americans are feeling more uncertain about the economy, with consumer confidence dropping sharply in March. Rising inflation expectations and worries about tariffs driving up prices have contributed to the decline, making it harder for the Federal Reserve to consider interest rate cuts.
6. Foreclosures increase but remain low
Foreclosure filings in the U.S. rose 5% in February but are still far below levels seen during the 2008 housing crisis. With home prices expected to rise in 2025 and no signs of a major recession, foreclosure activity should remain stable.

Reach out anytime! Call, text, or message me 😊

Brendan

P.S. I always appreciate referrals! It’s among the greatest compliments I can receive. If you know someone who is has questions about the real estate market, please send them my way. Thank you!