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Should You Still Buy a Home Right Now? What Buyers Need To Know
Between nonstop economic headlines, global uncertainty, and ongoing concerns about affordability, it’s understandable to wonder whether now is still a smart time to buy a home.
The good news is this: current events may be influencing the housing market, but they have not taken homeownership off the table. For many buyers, the opportunity is still there. It just may require a more thoughtful strategy than it did a few months ago.
Mortgage Rates Have Risen Slightly. Here’s What’s Behind It
After trending downward for much of 2025, mortgage rates have climbed again over the past month. Experts point to a mix of global events and broader economic pressures as key reasons why.
As Mark Fleming, Chief Economist at First American explains:
“Mortgage rates have recently moved higher, driven by geopolitical uncertainty and rising energy costs that are contributing to inflation concerns.”
So what does that mean if you’re thinking about buying a home? Should you wait for conditions to settle before making a move?
Not necessarily.
Your Opportunity To Buy Hasn’t Disappeared
There’s no denying that buying felt a bit more affordable when mortgage rates were closer to 6%. Now that rates are hovering in the mid-6% range, monthly payments are naturally a little higher.
But it helps to take a step back and look at the bigger picture.
For example, if you’re financing a $500,000 home, a rate in the mid-6s could still mean a monthly payment that is roughly $300 lower than what buyers were facing early last year.
That means today’s higher rates have not erased all the progress we’ve seen. In fact, buying a home can still be more affordable than it was just a year ago.
Yes, your payment may have been lower a few weeks ago. But trying to perfectly time the market rarely works in your favor. Conditions can shift quickly, and hindsight always makes past decisions look easier.
Instead of waiting for the “perfect” moment, focus on making the best decision based on your goals, finances, and today’s market conditions.
Expect Mortgage Rate Volatility
One thing buyers should be prepared for is continued movement in mortgage rates.
Rates may keep rising or falling in the weeks and months ahead as new economic reports are released and world events continue to unfold. That kind of uncertainty can feel frustrating, but it’s also part of today’s market.
The truth is, you can’t control what happens with inflation, global events, or mortgage rates next week. What you can control is how prepared you are when the right opportunity comes along.
That preparation can make all the difference.
If You Need To Move, You Still Have Options
For many buyers, the decision to move is not just about market timing. Life keeps moving, even when the market feels unpredictable.
Maybe your family is growing. Maybe you’re relocating for work. Maybe your current home no longer fits your lifestyle or needs. Those reasons still matter, and they may be more important than waiting for rates to change.
Buyers who are moving forward right now are often doing so because their personal situation makes it the right time.
And the good news is there are still strategies that can help make a purchase more manageable.
For example, some buyers are exploring adjustable-rate mortgages (ARMs) to secure a lower initial rate. That approach is not right for everyone, but it’s one example of how flexibility and planning can create opportunities in today’s market.
A Smart Plan Starts With the Right Experts
In a market like this, having a plan matters more than ever.
Working with a trusted real estate agent and lender can help you:
- Understand what you can realistically afford at today’s rates
- Review financing options, including ARMs and buyer assistance programs
- Stay informed as market conditions shift
- Make confident decisions based on your goals, not just the headlines
The right professionals can help you look beyond the noise and focus on what makes sense for your specific situation.
Conclusion
Uncertainty in the market does not mean you’re out of options.
If you need or want to move, buying a home may still be the right decision. The key is to go in with a solid plan, the right support, and a clear understanding of your financing options.
Homeownership is still possible. You just need the right strategy for today’s market.
The Best Time To List Your House Is Almost Here
Spring is usually one of the strongest seasons to sell a home, but according to research from Realtor.com, one specific week tends to stand out year after year. And it’s almost here.
Based on historical housing market trends, the best week to list your house this year is April 12–18.
Here’s why that window can be especially favorable for sellers.
Buyers Are More Active
Realtor.com reports that homes listed during this week typically receive 16.7% more views than the average week. In a market where buyers have more choices, extra visibility can make a real difference.
More attention early on can help generate stronger interest, more showings, and a better overall start to your sale.
Homes Sell Faster
More buyer activity can also lead to a quicker sale. Realtor.com found that homes listed during this week spend 17% less time on the market than usual.
That matters, especially in a market where some homes are taking longer to sell than they did a year ago. A faster sale can mean less stress, fewer disruptions, and more momentum from the start.
Sellers May Get a Better Price
As inventory grows, buyers often feel more comfortable asking for repairs, concessions, or price reductions. But during this early spring window, Realtor.com says about 18.9% fewer homes need a price cut.
That gives sellers a stronger chance of listing confidently and holding closer to their asking price.
More Money in Your Pocket
According to the same study, a well-prepared home listed during this week can sell for about $5,300 more than the average week and about $26,000 more than homes listed at the beginning of the year.
For sellers, that’s a meaningful difference.
More views, less time on the market, and a better shot at top dollar all make this one of the most appealing times to list.
What You Should Do Now To Prepare
If you’re thinking about selling and want to take advantage of this timing, the next step is simple: connect with a local real estate agent.
A trusted local agent can help you decide how to prepare based on what is happening in your market. Real estate trends can vary by city, neighborhood, and even price point, so local insight matters.
Your agent can help you figure out:
- What updates are worth making before you list
- Which repairs should come first
- What buyers in your area care about most
- Which small improvements can have the biggest impact
For some sellers, getting ready may only take a couple of weekends. Fresh paint, basic landscaping, or a deep clean can go a long way.
For others, taking a few extra weeks to make light updates may be the smarter move. And that’s completely fine. While mid-April may offer an advantage, it is not the only good time to sell.
Spring Still Offers a Strong Opportunity
Zillow says May is also one of the best times to list a home. That means sellers still have a strong window of opportunity throughout the spring season.
So while April 12–18 may be a standout week, it’s not your only shot at a successful sale.
Conclusion
Listing your house in mid-April could help you attract more buyers, sell faster, and maximize your sale price. But the bigger opportunity is the spring market as a whole.
The real question is: what do you need to do now to get your home ready to list?
For anyone planning a spring move, now is the time to start preparing. The sooner you connect with a local agent, the sooner you can make a plan that fits your goals and your timeline.
Home Affordability Improved in All 50 States: What Buyers Need To Know
For the past few years, affordability has been one of the biggest reasons buyers have put their home search on hold. Maybe you did the same.
At some point, you may have looked at the numbers, saw what a monthly mortgage payment would be, and decided to wait for the market to become more manageable. But there’s encouraging news you may have missed.
Over the past year, housing affordability has improved in all 50 states. Yes, every single one.
That’s according to new research from First American. And while buying a home is still more expensive than what’s historically normal, the affordability pressure many buyers have felt over the last several years is finally starting to ease.
Some Markets Are Seeing Bigger Improvements
One of the most important things to understand is this isn’t limited to one part of the country or just a few select markets. Affordability is improving almost all over the country.
Of course, real estate is always local. Conditions can vary a lot from one state, city, or neighborhood to the next. But overall, the market is becoming more favorable for buyers. In fact, affordability has improved in 48 of the top 50 metros over the past year.
That same research also highlights the top 10 cities seeing the biggest gains in affordability:
Top 10 Cities Where Home Affordability Has Improved the Most
- Miami, FL
- Atlanta, GA
- Seattle, WA
- Denver, CO
- Pittsburgh, PA
- Tampa, FL
- Salt Lake City, UT
- Riverside, CA
- Raleigh, NC
- Las Vegas, NV
If you’re wondering why some markets are improving faster than others, a lot of it comes down to home inventory.
When there are more homes for sale, the market becomes more balanced. This can help improve affordability by giving buyers more negotiating power. With more options available, buyers may have a better chance of finding a home that fits their budget, and they may also be in a stronger position to ask for seller concessions, price reductions, or closing cost assistance.
That can make a bigger difference than many people expect.
What Does This Mean for Buyers?
Home affordability challenges haven’t disappeared altogether, obviously. Buying a home is still a major financial decision, and housing prices remain high in many markets. But the overall nationwide trend is moving in a direction that gives buyers more opportunity than they’ve had in recent years.
As Chen Zhao, Head of Economic Research at Redfin, explains:
“The housing affordability crisis is showing signs of easing. . . opening the door for more Americans to make the jump to homeownership.”
Conclusion
If you’ve been waiting on the sidelines for affordability to improve, this may be the sign you’ve been hoping for. To find out what’s happening in your local market and how much buying power you may have today, connect with a trusted local real estate agent.
Are Home Prices Dropping? What the Latest Data Show
You’ve probably seen headlines or social posts claiming that home prices are falling. It’s an attention-grabbing message, and it naturally leads to two big questions:
- Is this the start of a crash?
- What does it mean for my home’s value?
Here’s the reality: a few markets are seeing small, normal pullbacks, but this is not a nationwide crash. In most areas, prices are still rising or holding steady, just not at the breakneck pace we saw a few years ago.
Home Prices Are Still Rising Nationally
A lot of online chatter focuses on isolated price drops without mentioning the broader data. Nationally, prices have continued to trend upward, but at a slower rate than usual.
According to a new report from the National Association of Realtors (NAR):
“Home prices continued to rise in the fourth quarter of 2025. National median prices rose 1.2% year over year to $414,900.”
That’s modest growth compared to the peak “boom” years, but it’s still growth. And regionally, the story varies.
At a glance, the numbers show:
- Northeast, Midwest, and South: prices generally up or steady.
- West: more mixed, with some markets seeing mild price declines.
In other words, the market is cooling and normalizing, not crashing.
Why You’re Hearing So Much About Price Drops
Price declines make for clickable headlines. But a few factors can make a local shift look like a national trend:
- High-profile metros go viral. A dip in one major market can dominate the conversation.
- Seasonality is real. Some months are softer than others, even in healthy markets.
- Affordability has cooled demand. Higher payments can reduce competition and push prices to level off.
Those are signs of a market adjusting, not collapsing.
Some Markets Have Softened, But Context Matters
In the places where prices have dipped, it helps to look at the big picture. Many of those markets saw especially strong appreciation over the last several years. When you compare today’s values to where they were five years ago, homeowners in many “down” markets are still up significantly overall.
According to data from ResiClub and Zillow, price dips in the short-term aren’t always the cause for concern they seem to be. The long-term trends tell a clearer story, and they remain strong for many homeowners.
The key point: a pullback after rapid growth is not the same thing as a crash. It’s often a correction toward something more sustainable.
What This Means for Homeowners and Buyers
If you’re a homeowner:
In most markets, you’re not watching value evaporate overnight. Instead:
- You likely still have meaningful equity compared to pre-2020 values.
- Pricing strategy matters more now that buyers aren’t automatically overbidding.
- The best indicator is recent comparable sales in your neighborhood.
If you’re a buyer:
A cooler market can create more breathing room:
- You may see more negotiability in certain areas.
- You may have more time to decide than during the peak frenzy.
- But waiting for a big “crash” could mean missing the right home if your local market is stable.
Real estate is local. The best move depends on your budget, timeline, and the neighborhood you want.
How to Know What’s Happening Where You Live
National headlines can’t tell you what’s happening on your street. To get a clear picture, look at:
- Recent sold prices (comps) for similar homes.
- Days on market and list-to-sale price ratios.
- Inventory levels and new listings.
- Price reductions on comparable listings.
A local real estate agent can help make sense of your market’s unique trends. That way, you know you’re relying on sound information for any decision you make.
Conclusion
Home prices are rising or holding steady in most parts of the country, and a handful of small declines does not equal a nationwide downturn. If you want to know what your home is worth today, review your local numbers with a trusted real estate professional.
Good News for Buyers: Home Affordability Improving in 2026
If you’ve felt priced out of the market or stuck waiting on the sidelines, there’s finally some encouraging news:
Buying a home is finally becoming more affordable.
Monthly payments have started to come down thanks lower interest rates, and buyers are starting to feel pricing pressures ease. That doesn’t mean homeownership is suddenly easy for everyone, but after a tough stretch, small improvements are meaningful.
Home Affordability Is Finally Improving
One of the clearest ways to track this change is to look at how much of a household’s income goes toward owning a home.
According to Zillow, housing is typically considered affordable when total housing costs take 30% or less of your monthly income. That includes your mortgage payment, property taxes, insurance, and basic maintenance.
For the past few years, many buyers were well above that mark, which pushed homeownership out of reach for a lot of households. But that’s starting to shift. Zillow research shows it’s taking less of a typical household’s income to buy a home than it did just a few years ago (see graph below):
We’re not all the way back to Zillow’s 30% threshold yet, so affordability is still tight in many markets. But the trend is improving, and that’s a big change from what buyers have been up against.
Why Homebuying Is Becoming More Affordable
Mortgage rates get most of the attention, and yes, rate movement plays a major role in monthly payment size. But it’s not the only reason affordability is improving. Three key trends are working in buyers’ favor right now:
1) Mortgage rates have eased
Rates are near their lowest level in more than three years, which can reduce monthly payments and expand buying power (see graph below):
2) Home price growth has cooled
Home prices aren’t falling nationally, but they’re rising more slowly than they were a few years ago. That matters because slower price growth helps keep purchase prices from jumping as sharply, which can make payments feel more manageable and the overall buying process more predictable.
3) Wages are growing faster than home prices
This is a major factor that often gets overlooked. When incomes rise faster than home prices, buyers can start catching up. Mark Fleming, Chief Economist at First American, explains:
“When income growth exceeds house price growth, house-buying power improves—even if mortgage rates don’t decline meaningfully.”
None of this makes homes “cheap,” but it does help explain why the math is starting to work a bit better than it did even a year ago. In short, some of the forces that curbed affordability are finally easing. As Fleming again explains:
“Affordability remains challenging, but for the first time in several years, the underlying forces are finally aligned toward gradual improvement. Mortgage rates may drift down only slowly, but income growth exceeding house price appreciation will provide a boost to house-buying power — even in a higher-rate world. Affordability won’t snap back overnight, but like a ship finally catching a steady tailwind, it’s now sailing in the right direction.”
Because of these combined shifts, many economists expect affordability to continue improving in 2026.
Where Are Homes Becoming Affordable First?
So how much will affordability improve, and where will it show up first? In some places, the difference could be noticeable. Zillow says some markets are expected to fall back under their affordability threshold (30% of income or less) by the end of the year (see graph below):
But you don’t have to live in one of those specific markets, and you may not have to wait until year-end to see improvement. Many areas are already trending in a better direction.
That’s why your next best step is local: talk to a real estate agent who understands what’s happening in your market. The national headlines don’t always reflect what’s going on neighborhood by neighborhood, and you might be closer to buying than you think.
Conclusion
For the first time in a while, home affordability is easing, and that’s an important shift for buyers.
And because the pace of improvement varies by location, understanding what’s changing locally can make all the difference. If you want to see how these trends are playing out where you live, connect with a local real estate agent to talk through your options.
Mortgage Rates Just Hit a 3-Year Low. Does It Matter in 2026?
If you’ve been watching mortgage rates and waiting for a “better time” to buy, here’s your chance. Rates just dipped below 6% for the first time in more than three years. Even modest rate movement can change what you can afford, how competitive you can be, and whether buying feels realistic again, especially if last year’s higher rates pushed you to the sidelines.
With rates finally easing up into 2026, here’s a fresh take on why lower mortgage rates are still a big deal, plus what to do next if you’re thinking about making a move.
Why Mortgage Rates Impact More Than Just Interest
A mortgage rate isn’t just a number on a lender’s website. It shapes the entire homebuying experience because it affects:
- Your monthly payment
- How much home you can qualify for
- Your comfort level with your budget
- How competitive your offer can be
When rates jump, affordability tightens fast. That’s why many buyers (especially first-time homebuyers) feel the pinch first. When rates ease, the reverse happens: budgets get a little more breathing room, and choices open up.
The “One-Point” Difference That Changes the Math
One of the easiest ways to understand why rate declines matter is to look at a simple example.
When rates are closer to 7%, monthly payments rise sharply. When rates move closer to 6% (or below), payments can drop meaningfully. On a typical loan amount, that can translate into hundreds of dollars per month in savings compared to the higher-rate environment.
That difference can help you:
-
Stretch your budget without stretching your lifestyle
-
Consider more homes in a neighborhood you actually want
-
Keep cash available for repairs, furnishing, or future goals
In practical terms, the change isn’t just “cheaper interest.” It can be the difference between compromising on your wish list and finding a home that fits.
What Lower Rates Can Unlock for Buyers
When borrowing costs come down, three things usually happen for homebuyers:
1) Lower monthly payments
A lower rate can reduce the monthly principal-and-interest payment, which helps many buyers feel more confident about moving forward.
2) More buying power
When the payment drops, you may qualify for more home at the same monthly budget. That can mean a better location, an extra bedroom, or a property that needs fewer updates.
3) Stronger offers without overextending
More budget flexibility can help you compete without taking on a payment that makes you uncomfortable. That matters in markets where inventory is still tight and desirable homes move quickly.
Why This Can Bring More Buyers Off the Sidelines
Rate changes don’t only affect you. They affect everyone who has been waiting, too.
Industry research suggests that when rates sit around certain thresholds, millions more households can afford a median-priced home. In fact, research from the National Association of Realtors (NAR) points to 5.5 million additional households being able to afford the median-priced home when rates are at 6% or below, and it estimates roughly 550,000 of those households could buy within the next 12 to 18 months.
That matters because it signals something important: pent-up demand can return quickly when affordability improves.
If you’re home-searching now (or preparing to), you may be able to act before competition fully ramps back up.
A Quick Reality Check: Rates Aren’t the Only Factor
Lower rates help, but they don’t magically make every home affordable. Your true monthly cost depends on several moving pieces, including:
-
Home price
-
Local inventory and competition
-
Property taxes
-
Homeowners insurance (which can vary widely by state and ZIP code)
-
HOA dues
-
Your down payment and credit profile
That’s why the smartest next step isn’t guessing. It’s running real numbers to figure out what “affordable” looks like for you.
What To Do Next If You’re Considering Buying
If you’ve been waiting for rates to improve, here’s a simple, practical plan:
-
Get pre-approved (not just pre-qualified).
Pre-approval gives you a clearer budget and shows sellers you’re serious. -
Calculate your comfortable payment range.
Decide what fits your life, not just what a lender says you can qualify for. -
Compare scenarios with your lender.
Ask for payment examples at different price points, down payments, and rate options. -
Watch inventory in your target neighborhoods.
The best “deal” is the home that works for your needs and your budget.
Conclusion
Mortgage rates easing from last year’s highs isn’t just an attractive headline. For many buyers, it can be the shift that turns “maybe someday” into “this could actually work.”
If you paused your search when rates were higher, it’s worth revisiting your numbers now. A quick conversation with a trusted lender can show what today’s rate environment means for your payment, your buying power, and your options.
If you’re thinking of buying, or need help finding a lender, reach out to us today. We can connect you with local agents and lenders to make your journey as simple as possible.
From Dan’s Desk: June 3, 2025
As spring winds down and June approaches, we typically anticipate a familiar surge in housing market activity across the United States. This seasonal trend is especially pronounced in regions like the Midwest, where warmer weather traditionally brings buyers and sellers out in force. But this year, something feels different. The energy we expect to accompany spring’s closing weeks has been muted. The 2025 spring market, it seems, is stalling.
So, What’s Different This Time Around?
There are a number of likely culprits behind this pause. Mortgage interest rates, while slightly lower than last year, are still hovering in the high 6% range—making monthly payments a challenge for many would-be buyers. Combined with lingering concerns over global trade tensions and general market conditions, both buyers and sellers appear to be proceeding with caution.
Let’s Talk Stats:
This caution is reflected in national data. According to the National Association of REALTORS® (NAR), existing-home sales dropped by 0.5% in April, totaling a seasonally adjusted annual rate of 4 million homes—a 2.0% decline compared to April 2024. While these figures aren’t catastrophic, they do suggest a cooling from the more aggressive pace we saw last spring.
Regionally, the story is mixed. In the Midwest, sales actually rose slightly by 2.1% month-over-month, though they’re still down 1.0% compared to last year. The median home price in this region climbed to $313,300—a 3.6% increase, suggesting that demand hasn’t vanished, but is perhaps more measured. In contrast, sales in the West declined 3.9% from March.
Yet, within this slowdown, there are glimmers of opportunity. Inventory is growing—a crucial signal for future momentum. The number of unsold existing homes jumped 9.0% from March to April, now sitting at 1.45 million units. More listings mean more choices, and more choices may nudge hesitant buyers off the fence.
Consumer attitudes are also evolving. We’re seeing increased willingness among sellers to embrace strategic price reductions. Buyers, in turn, are responding to those reductions and showing renewed interest in properties they might have previously dismissed. First-time homebuyers are stepping back into the market as well, accounting for 34% of April’s purchases—an encouraging uptick from earlier this year.
Optimism is bubbling in some corners of the industry. There’s talk that the second half of 2025 could bring a notable rebound, especially if mortgage rates stabilize or even soften. NAR projects total existing-home sales to reach 4.5 million by year’s end, with the national median price expected to hover around $410,700.
Of course, time will tell. But whether that optimism materializes into a midyear boom or not, one thing remains clear: preparation matters. In today’s uncertain environment, the professionals who stay engaged—those who nurture their networks, prospect consistently, and understand the shifting behaviors of both buyers and sellers—will be best positioned for success.
So, while this spring may not be delivering the surge we expected, it’s far from a lost season. It’s a moment of reset—a chance to watch the signals, adjust strategies, and get ready for what’s next.
That’s all for now,
Dan
How Could a Recession in 2025 Affect the Housing Market?
As talk about economic slowdowns runs wild, worries about a potential recession in 2025 are on the rise. Naturally, many homeowners are wondering what a recession could do to the value of their home, and their buying power.
Using historical data from recessions of decades past, let’s see how a recession might affect the housing market in 2025.
A Recession Won’t Lower Home Prices
It’s a common misconception that a recession will cause home prices to crash, like they did in 2008. In reality, 2008 was the only time the housing market saw such an extreme, dramatic drop in prices. Overflowing home inventory caused that price crash, and conversely, low inventory has prevented a similar crash in the years since.
Even in markets where housing inventory is up, it’s still far below the listing oversupply that caused the 2008 crash. Indeed, according to data from Cotality, home prices actually increased during four of the last six major recessions.
As the graph shows, a recession doesn’t necessarily mean that home prices will crash, or even drop. In reality, historical data shows that home prices usually continue along their current trajectory when a recession hits. And at the moment, home prices are still rising nationally, but at a more normalized rate. So, as the market stands now, a recession in 2025 would most likely drive prices even higher.
Mortgage Rates Typically Decline During Recessions
Home prices may stay their path during economic slowdowns, but mortgage rates actually tend to drop. Looking again at historical data from the last six recessions, this time from Freddie Mac, mortgage rates fell each time.
Historically speaking, a recession could mean that mortgage rates may even decline this year. However, the last time a recession dramatically lowered mortgage rates was over three decades ago in 1991. So with that said, even if a recession does happen, don’t expect a game-changing drop in mortgage rates.
Conclusion
Nobody ever truly knows what the economy will do, but the odds of a recession in 2025 have increased. Still, a recession doesn’t mean you need to worry about the housing market or the value of your home. The historical data tells us that a recession may even drive home prices higher and mortgage rates lower.
Wondering how an economic slowdown could impact your local market? Connect with us to get the info you need to plan ahead.
Foreclosures Rose in Q1 2025 – Is It a Warning Sign?
With everyday costs seemingly rising across the board, the state of the housing market is a natural concern. When basic living expenses rise, even critical financial responsibilities like mortgage payments start to slip, leading to increased foreclosures. Unsurprisingly, new data shows filings for foreclosures rose in Q1 2025, stirring worries about another housing crash like in 2008.
But as it turns out, there’s less cause for worry than you might think. When contextualized correctly, it’s clear these new number don’t point to a repeat of the last big housing crash.
The 2008 Market Versus 2025
The latest quarterly report from ATTOM shows that foreclosures did rise in Q1 2025, which is concerning at first glance. However, foreclosure filings were still lower than the normal historical average, and far below the levels seen in 2008. When plotted visually, it’s easy to see the huge difference between 2008 and 2025.
Compare the foreclosure filings in Q1 2025 to the years surrounding the 2008 crash on the graph below. Even in the years preceding and following the 2008 crash, foreclosures were dramatically higher than what we’re seeing now.
Back in 2008, lenders were approving loans using much riskier practices, saddling many homeowners with mortgages they couldn’t afford. This flooded the market with distressed properties, surplus housing inventory, and free-falling home prices that collectively caused the crash.
In the years that followed, lending standards became much stricter and stronger to prevent such a crash from happening again. Today, most homeowners are in a much better financial position, and foreclosures have stabilized as a result.
The graph may appear to show foreclosures ramping up since the lows of 2020 and 2021, but this is deceiving. Foreclosures during those years were unusually low thanks to a moratorium designed to help millions of homeowners through the pandemic. That moratorium has since ended, which has caused foreclosure filings to return to the more normal levels we see now.
Compared to pre-pandemic years like 2017-2019, foreclosures overall are actually relatively down from what’s considered normal. So while foreclosures rose in Q1 2025, this doesn’t point to a troubling surge in the market.
Why Foreclosures Haven’t Surged in 2025
Another reassuring difference in today’s real estate market is the power of increased homeowner equity. As home prices have exploded over these past few years, homeowners have enjoyed a welcome boost to their wealth. According to Rob Barber, CEO at ATTOM:
“While levels remain below historical averages, the quarterly growth suggests that some homeowners may be starting to feel the pressure of ongoing economic challenges. However, strong home equity positions in many markets continue to help buffer against a more significant spike . . .”
In short, if a homeowner can’t make their mortgage payments, they may be able to sell their home to avoid foreclosure. During 2008, many people owed more than their homes were worth and had no choice but to foreclose. Today, most homeowners have much stronger equity that protects them from being forced into foreclosing. As Rick Sharga, Founder and CEO of CJ Patrick Company, recently explained in a Forbes article:
“ . . . a significant factor contributing to today’s comparatively low levels of foreclosure activity is that homeowners—including those in foreclosure—possess an unprecedented amount of home equity.”
Conclusion
It’s true that foreclosures rose in Q1 2025, but they’re nowhere near the levels seen during the 2008 crash. Even as home prices continue rising, strong equity is protecting existing homeowners and bolstering their wealth. This doesn’t discount the struggles some homeowners are facing, but it’s a reassuring fact for the market at large.
If you’re a homeowner facing foreclosure, ask your mortgage provider about what options are available to you. Are you a first time buyer eager to build your equity? Contact us today for the info you need to get started.
From Dan’s Desk: May 5, 2025
As we continue navigating a rapidly evolving real estate landscape, I wanted to take a moment each quarter to connect directly with you—our agents, staff, and leadership team—to share what I’m seeing in the market, what it means for our business, and how we can continue moving forward together.
This new quarterly message is meant to offer perspective, spark conversation, and keep us aligned on the bigger picture. Whether you’re helping clients buy and sell every day, or supporting our operations behind the scenes, we’re all part of what makes this company strong, and what makes this company continue to succeed.
Let’s take a look at where things stand today and where I believe we’re headed next.
Where Is the Residential Real Estate Market Going?
This is the major question everyone in the industry is asking. With January and February sales numbers coming in weaker than expected—per the latest NAR data—and no significant movement in interest rates, many are beginning to second-guess 2025’s ability to rebound after two consecutive years of significantly low home sales in the U.S.
While I don’t have a crystal ball, we are beginning to see encouraging signs in many local markets. Our internal data shows March’s open business was up year-over-year, and listing inventory is starting to grow. As a company, we remain bullish that the summer of 2025 could be one of the stronger selling seasons we’ve experienced in recent years.
That being said, it may be a long time before we return to the 6 million-plus annual home sales we saw during the boom years of 2020 and 2021. Companies need to continue reinventing themselves in markets like this. The real challenge lies in this: how do we provide outstanding service to consumers and best-in-class support to our agents, all while maintaining an expense structure that allows organizations to thrive?
This is the question we all need to be asking to stay ahead of market trends. Personally, I don’t believe these types of markets are to be feared—but rather embraced. They push us to innovate, to adopt new technologies, and to develop new services that will make our businesses more resilient and better equipped to serve our clients in the long run.
That’s all for now,
Dan
