Ongoing volatility in political/economic conditions took some of the wind out of the sails of the spring real estate market, usually the most dynamic of the year. Uncertainty regarding the economy and possible implications for personal circumstances understandably made a proportion of buyers and sellers more hesitant about moving forward with one of the largest financial transactions of their lives. Still, while sales in most markets slowed year over year, the change was not profound and may readjust with new macroeconomic developments.
Note that virtually all of May’s closed sales—the basis for most of the market data featured in this report—were negotiated before the May 12 reversal of China-tariff policies, which triggered an enormous recovery in the stock market, and significant rebound in consumer confidence (but which still remained very low by historical standards). The latest inflation reading remained subdued, but concerns continue regarding the possible impact of tariffs. Interest rates have been stable for the past 2 months, but in the absence of a meaningful decline did not provide the hoped-for boost to buyer demand. The Fed once again left their benchmark rate unchanged.
Compared to 1 year ago, median sales prices for houses and condos/co-ops in April rose slightly by 1.3% and .7% respectively. Active listings rose 6% from April and 20% year over year, and months-supply-of-inventory—a comparison of demand vs. supply—hit its highest reading in 6+ years. Sales volume climbed 11.5% from April but was 4% lower than a year ago. 60% of sales went into contract within 1 month of coming on the market, and 28% sold above asking price. Cash purchases accounted for 27% of sales; price reductions hit a 6-year high; and over the past 3 months, 6% of contracts were cancelled before close of escrow and 13% saw delays in closing. The median time-on-market to offer acceptance was 27 days—faster than in April, but slower than the 24 days in May 2024. Distressed-property sales ticked up to a still very low 3%.
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