March of 2025 marked 5 years since the COVID-19 pandemic created an upheaval in the real estate market. Fueled by artificially low borrowing rates, consumer trends demanded zoom rooms, outdoor space, and room to get away from family. We all needed a place to feel safe in our new temporary reality. Five years later, the after effects have set in. The new normal is really just the old normal with 5 years of distorted reality in between.

Sellers continue to face stiff competition in the form of increasing inventory, higher interest rates, and affordability challenges. Price appreciation and the number of closed sales have stagnated and this highlights that the market is less active than before the pandemic. Uncertainty in the bond market and new leadership at FHA will continue to put pressure on the overall housing market.

This leads to opportunity for buyers not observed in five years. Buyers can bank on prices coming down, and sellers providing concessions. Buyers have leverage when negotiating a good deal. Some of the best opportunities are in new home communities. Builders have seen a significant slowdown in sales, and are offering buyer incentives of up to 13% of the purchase price.

Even with the recent stock market volatility, interest rates have been moving up. The 30-year fixed loan rate is at 6.87% today. Expect more turbulence as we continue the bumpy road to a more balanced market. Our decades of experience can work in your favor.