The real estate market hasn't shifted much over the last two months, even with the stock market bouncing back after the dredges of April. Let's review...
How are the interest rates?
Rates are still hanging out in the mid to high 5 percent range for 7, 10, and 15-year ARMs with the big-name lenders like Wells Fargo, Chase, Bank of America, and Citi. If you’ve got a good relationship with your bank or are open to starting one, you might be able to snag something in the low 5 percent range. For the classic 30-year fixed, expect low or mid-6 percent.
What’s happening with inventory?
(Inventory = Homes currently for sale) Things were ticking up nicely until mid-May. Then we saw a small dip. One month doesn’t make a trend, but don’t be shocked if inventory keeps slipping. That’s totally normal for this time of year, as people go on vacation for summer. That also means fewer choices for buyers on the market, but overall, inventory is pretty good.
Are houses still getting multiple offers?
Yes and no. Homes that come with challenges like not-so-great location, lower-rated schools, overpriced or major repairs tend to linger for two to three weeks (or more) before getting serious attention, if they do at all. In a hot market, those listed above would still be selling in a week. Nowadays, it takes a price reduction on these types to garner enough interest to sell. But the homes I helped clients ratify over the past three weeks were all nice and all had at least three offers. That said, things aren't as wild as earlier this year. Bids are coming in closer to each other and closer to comps. Less frenzy, more strategy.
So what’s ahead?
It’s going to stay a little weird for a while. On the surface, it feels like demand is slowing. Much of that is due to the tariff weirdness and the wait and see approach of the 90-day tariff halt, which ends in July. So if you’ve been waiting on the sidelines, this might actually be your moment to make a move for a new home. Reach out to a solid lender and realtor to help you make sense of things. If you're looking to sell, you HAVE TO PREP YOUR HOME WELL! If you don't and skip a step or two when selling the house, your listing is going to sit in the sun for a while and bake.
And if you’re not ready and prefer to sit tight, that’s completely fine too. Just make sure your capital is protected and you’re set up for whatever comes next.
