May 2025 Real Estate Market Update
Hey everybody, Dominic Nicoli here with your May 2025 real estate update. The theme of the month, we have a little bit of chaos and volatility from all the crazy tariffs going on in the stock market as a result. So we'll tell you how all that has impacted the real estate market as we move forward here.
Market Statistics
So first of all, I'll give you a few basic stats. Closed sales for the month of March were actually down about 9.6 percent to 586 down from 648. Pending sales were also down about 8.4 percent.
They were down to 633 from 691 and active listings were up again. So this is the fourth consecutive month we've seen active listings up. Currently 1346 as opposed to 1159 and that is a roughly 16 percent increase.
Average sales prices stayed about the same, we're right around 2.3 million still. And the absorption rate—the month's supply of homes for sale—is about two months right now. That still indicates we’re in more of a seller’s market.
Mortgage Rates
Mortgage rates stayed about the same. They were 6.75% this time last month. Now we're at 6.83%, so that's stayed pretty stable.
We're still hoping that maybe towards the end of the year we'll see those come down. There still are some interesting financing options that we have there to get the rates down a little bit. If you're interested in hearing more about those, please contact me.
Market Activity & Buyer Behavior
Overall, we've seen prices leveling off. We're still seeing great activity in our listings, but less buyer activity than we saw a couple months ago, which is to be expected. But the market is still relatively healthy and we're still seeing plenty of transactions taking place.
Buyer Sentiment Amid Stock Market Volatility
The biggest thing that I'm seeing right now with the stock market volatility—and this is very common whenever we have any kind of chaos or anything in the markets—is that buyers are divided into three different camps:
- Group One: Buyers who were relying on their stock prices to fund their down payment. Because those prices have gone down, they’re temporarily out of the market.
- Group Two: Buyers who have the money but are hesitating. They're worried the market might fluctuate, go down, or even collapse, so they’re sitting on the sidelines.
- Group Three: Buyers who see real estate as a long-term investment. They're jumping in now, taking advantage of lower competition and slightly better prices.
Final Thoughts & Advice
It's a unique buying opportunity. My advice to everybody out there that has the means to do it is take advantage of this. I can't tell you over the years how many people—countless times—have come to me later saying, "Gosh, darn it, we should have bought."
I know it always feels a little scary when we're going through any kind of chaos, but these become the times that buyers really do very, very well in this market.
Stay Connected
As always, if you have questions about the market, what's going on, how much your home is worth, how this has impacted your home value—any of that stuff—give me a call. We're happy to discuss it with you and get you all the information you need to make a great decision.
We'll be in touch. We'll come back to you at the beginning of next month and give you an update. And I suspect that we might be in a very different place a month from now.
So stay tuned. All right. Thanks so much for watching.
