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As we step into May 2025, I wanted to share some key insights into the current U.S. real estate landscape to help you navigate the market effectively.
Mortgage Rates Show Modest Decline
The average rate for a 30-year fixed mortgage has eased to 6.76%, marking the second consecutive weekly decline. While rates remain above 6%, this downward trend offers a slight reprieve for prospective buyers.
Housing Inventory on the Rise
In March, the number of unsold completed single-family homes surged to 119,000—the highest since 2009. This increase in inventory provides more options for buyers and may lead to more competitive pricing.
Seller Concessions Becoming More Common
Approximately 44.4% of U.S. home sellers offered concessions to buyers in March, nearing record levels. This trend indicates a shift towards a more buyer-friendly market, with increased opportunities for negotiation.
Affordability Remains a Challenge
Despite the slight dip in mortgage rates, affordability continues to be a significant hurdle. Many households are spending over 30% of their income on housing costs, highlighting the ongoing financial strain on buyers.
Looking Ahead
Experts predict that mortgage rates will remain above 6% throughout 2025, with home price growth slowing but staying positive. The market is expected to remain subdued, influenced by affordability challenges and the “lock-in effect,” where current homeowners are hesitant to sell due to their existing low mortgage rates.
If you’re considering buying or selling, now may be an opportune time to explore your options. I’m here to provide personalized guidance and answer any questions you may have about the current market conditions.
Steve Cardinalli
Real Estate Professional, 01323509
(760) 814-0248
Steve@Cardinalli.com
www.Cardinalli.com
Century 21 Affiliated Fine Homes & Estates
Village Faire in Carlsbad Village
300 Carlsbad Village Dr, 223
Carlsbad, CA 92008
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