The Real Estate Market Is...

...in GRIDLOCK

sellers want their home to sell quicker

and buyers want to see even a larger supply of homes to choose from

so we have this conundrum of everyone watching and waiting for a breakthrough

and we find that most buyers on "PAUSE"

which is causing home sellers a lot of anxiety

and with that they are searching for ways to increase interest in the home

they prefer the easy list

• increase the advertising
• change the listing description
• change the order of the photos
• add or enhance the virtual tour
• do more open houses

as opposed to doing the things that they should do or have to do

and in a market where buyers are largely indifferent to making offers

there are only 2 levers that a seller has to make an impact

Time and Money

so unless sellers are willing to reduce their price or make capital improvements

chances are their efforts will not provide an acceptable offer

Let's Face it - There are only 3-4 Things that matter when selling a home

1. Location
2. Condtion
3. Marketing
4. Price

The reality for most home sellers is that a price adjustment

is a good idea but may not get the job done

and if that's the case

many will delay a price reduction until the market is "more ready"

which leaves us in a perpetual state of gridlock

today's show goes over how we got here and a way out this situation

The Biggest Problem In Real Estate...

...Might just be a combination of things

Whether its high prices, interest rates, or the homes available

It's Increasingly hard for 1st time home buyers to enter the market

and move up buyers are feeling the cost outweighs the benefit

die to the lack of available homes in the most sought after areas

combine that with affordable housing typically needing repairs and renovation

where those buyers don't have the extra money for after the closing

the majority of the buyers in the market is sitting on the sidelines

Interest rates are in a range very close to the historical average

and many would be home sellers are hesitant to give up the low rates

that they were able to obtain when the purchased the homes

economic uncertainty has many people unwilling to make any big decisions

until they have more clarity on the direction of the market

the gridlock is real and many people feel "stuck"

and yet somehow, there is competition for many homes when they hit the market

stay with me on this...

when the right home finally becomes available

where the location, price, and property condition shows up

it unlocks a segment of buyers that will be attracted to these homes

its also likely, that a lot of "pent up demand buyers" will make offers

which only further frustrates that group as only 1 buyer will get that home

the same can be said homes in the affordable housing areas...

home builders are slowing down new home starts

and allowing their inventory to decrease

so there is a possibility of a new homes shortage somewhere down the road

so what needs to take place for the market to get moving forward ?

buyers will have to accept the fact the its completely unlikely

that home prices AND interest rates will come down

interest rates appear to be the one of those 2 things to decrease this year

and with that I would anticipate that home prices will continue their long upward trend

could it actually be that the real "biggest problem" in real estate

is none of the many things discussed so far?

I would suggest that its definitely something different

The Biggest Problem is NAVIGATION

Finding a way to navigate the labyrinth of things discussed in today's show

requires a road map, or better yet -

a guide to get you though it all to safely arrive where you want to be

The Timing Of Interest Rate Changes ...

...is not affecting home prices

Once again the Fed decided to keep interest rates the same

While individuals, and businesses alike, want rates to be lowered

the Fed has signaled that they think rates are where they need to be

and unpopular of an opinion as it might be

there is some evidence that they aren't necessarily wrong

home values increased 3% in the 1st Quarter of 2025 as compared to the same quarter in 2024

There are only 4 meetings left in 2025

• July 29-30
• September 16-17
• October 28-29
• December 9-10

so if there is going to be surge of buying over the summer months

it will be based on the strength of the real estate market

and not due to the cost of money being less expensive

and with that, we would know with great certainty

that the housing market is solid

without manipulation of interest rates

so when the Fed eventually lowers rates

there could very well be a surge in the real estate space

if you have been playing the wait and see game

watch for 2 interest rate changes over the next 4 meetings

my suspicion is that you will see one in July or September

and the other one In October or December

with the likelihood that home values continue to increase

the monthly home loan payment will not see much change

listen for the explanation on how and why things are playing out