Due to volatility in the U.S. economy since late January, prospective buyers currently seem to be holding their collective breath while waiting to see how ongoing market conditions may affect their purchasing power. As economists weigh in with their take on the market, buyers should stay alert to opportunities to enter the market at lower costs if mortgage rates decline and buying demand slows.
Existing-home sales fall to slowest pace since 2009 amid rising costs
Existing-home sales dropped by 5.9% from February and by 2.4% from March 2024 as homebuyers continued to deal with affordability challenges, said NAR Chief Economist Lawrence Yun
A dimming economic outlook because of uncertainty caused by President Donald Trump's constantly shifting tariff policy and duties already imposed on a plethora of imports, including lumber, is seen dragging the housing market.
"Home buying and selling remained sluggish in March due to the affordability challenges associated with high mortgage rates," said Lawrence Yun, the NAR's chief economist,
Properties typically stayed on the market for 36 days last month compared to 33 days a year ago.
First-time buyers accounted for 32% of sales, unchanged from a year ago. Economists and realtors say a 40% share is needed for a robust housing market. All-cash sales constituted 26% of transactions, down from 28% a year ago.
Distressed sales, including foreclosures, made up 3% of transactions, rising from 2% a year ago.
Thinking of Selling Your Home?
Locally: The Greater Seattle Area leads U.S. in concessions for home buyers as housing demand slows.
Seattle leads all major U.S. metropolitan areas in concessions for home buyers as the trend continues to escalate nationally.
Home sellers gave concessions to buyers in a whopping 71.3% of transactions during the first quarter of 2025, nearly double the mark from a year ago. In 2024, just 36.4% of house real estate transactions included concessions. Not only does Seattle lead all metro regions in 2025, it’s also the largest year-over-year increase among the metros Redfin analyzed.
Seller concessions are a strategic arrangement in a real estate transaction where the seller covers certain costs or fees associated with purchasing a home. This could be a number of things, including covering closing costs, repairs for a stretch of time, inspection fees, property taxes, and attorney fees.
Sluggish demand is the driving factor in the increase in seller concessions. A variety of factors are contributing to the slowing demand for homes, with reasons ranging from the region’s high prices, taxes, and overall economic uncertainty. Additionally,13% of pending home sales were canceled in March.
Condos in particular have become a tougher sell because of skyrocketing HOA fees and insurance.
Buyers used to ask for concessions to cover little things like repairs. Now they’re negotiating concessions so they can afford to buy a home. We are seeing a lot of sellers offering money for mortgage-rate buydowns, and I recently had one seller cover a full year of HOA fees for the buyer.
Professional Equity Assessment Report
PEAR is a custom evaluation of your home’s cash value. We can determine your home’s approximate equity by assessing your current mortgage and estimated selling price and deducting fees such as commissions, excise tax, and other closing costs. This report is a powerful tool for helping you make confident decisions about selling your home.
The truth is that the final numbers are more than just the sales price and the remaining mortgage balance. Other factors such as capital gains tax, broker commissions, HELOC loans, prepayment penalties, special assessments, and escrow and lender fees play a part in this final number.
We’ll help you clearly understand your bottom line. Just provide us with your address, and we’ll start on the report immediately.
We’ll help you clearly understand your bottom line. All you have to do is let us know what your address is, and we'll get started on the report right away.
What factors are included in the equity assessment of my home value?
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