The housing market is sending mixed signals this year. Let’s simplify the latest updates and how they impact buyers and sellers.
1. Economy Slows, But Don’t Panic
The U.S. economy shrank 0.3% in Q1 2025—the first decline since 2022. Rising imports and lower government spending played a role. While this could lead to slower home sales, mortgage rates remain unpredictable.
What to Do:
-
Buyers: Watch rates closely; consider locking in if they dip.
-
Sellers: Price smartly—overpricing may turn buyers away.
2. California Insurance Rates Jump 21%
Homeowners' insurance in CA will hit 2,930/year on average in 2025 (up from 2,424). Blame wildfires, new rules, and climate risks.
Act Now:
-
Shop for insurance early and ask about fire-safe home discounts.
-
Sellers: Highlight upgrades like fire-resistant roofs.
3. Jobs Grow, But Worries Remain
177,000 jobs were added in April (healthcare, travel, and leisure sectors strongest). Unemployment stayed at 4.2%. Good news, but tariff fears and federal job cuts could slow momentum.
Takeaway: Job stability = easier mortgage approval. If your job’s secure, it’s still a good time to buy.
4. Fewer New Homes Being Built
Construction spending dropped for the first time in 6 months. Fewer new builds mean:
-
Buyers: Limited options, especially in popular areas.
-
Sellers: Less competition from new builds could help your home stand out.
5. Buyers & Sellers Are Nervous
Consumer confidence is at a 3-year low. Tariffs, rate swings, and recession talk are spooking everyone.
Stay Calm & Strategic:
-
Buyers: Focus on long-term value, not short-term noise.
-
Sellers: Offer flexibility (like covering closing costs) to attract worried buyers.
Why This Matters: Real estate is still a smart investment—even in uncertain times. Let’s make your move count! Give us a call!
For more info and to schedule a meeting, email us at [email protected]
