Lisa Mailhot | May 2, 2025
Buyers
Many real estate professionals kicked off the year with high hopes, but the early months brought unexpected twists. Some brokerages reported record-low activity in March—just when they anticipated a seasonal lift. However, recent weeks have brought encouraging signs, with agents seeing a noticeable uptick in listings and buyer interest.
One industry leader shared that buyers who had been hesitant earlier in the year are now beginning to engage more seriously. While it's too soon to say whether this trend will last, many in the field are hopeful the momentum will carry through summer.
Volatile interest rates are keeping many buyers on edge. A small percentage jump—say from 6.63% to 6.81%—can raise monthly mortgage payments by $200 or more. According to economists, that added cost can be a dealbreaker for families already stretched by everyday expenses.
Compounding the issue are rising tensions around international trade, including new tariffs that may increase the cost of materials and goods. These pressures are causing many would-be buyers to second guess their timing.
Even as buyers grow cautious, many sellers are eager to list. National trends show that a large majority expect to get full asking price or more. Yet, behind the scenes, more homeowners are adjusting their expectations.
Recent market data revealed a spike in price reductions—an indication that while sellers remain optimistic, they’re also becoming more open to negotiations. This shift creates valuable opportunities for savvy buyers who understand how to leverage the current conditions.
While resale activity dipped in March, new-home sales painted a brighter picture. Builders are offering incentives, such as rate buy-downs and closing credits, and many are focusing on smaller, more affordable homes.
This part of the market is proving especially attractive to first-time buyers and anyone seeking move-in-ready options without competing in bidding wars. With price gaps narrowing between new and existing homes, more buyers are expanding their search to include new construction.
One key takeaway from this spring is that market perception matters just as much as statistics. With the uncertainty of rising costs and political developments, many consumers are pausing—not because of what the data says, but because of how they feel about the future.
That’s where trusted local experts come in. Sharing timely, hyper-local insights can help buyers and sellers cut through the noise and make confident decisions. Market education isn’t about pushing people to act—it’s about empowering them to act wisely when the time is right.
While 2025's spring market may feel unpredictable, it’s also rich with opportunity for those who know where to look. Whether you're buying your first home or planning to sell in a competitive area, Whitestone Real Estate is your trusted guide in Orange County. Let’s connect today and create a winning strategy for your next move.
Reference: McPherson, M. (2025, May 1). A 'herky jerky' start to the spring buyer season isn't deterring agents. Inman.
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