The volatility we’ve experienced in just the last month—across the stock market, the global economy, and even gold prices—makes it feel as though we’ve packed a year’s worth of headlines into a few short weeks. As 2025 began, there was cautious optimism about the housing market stabilizing. Hopes centered on increased inventory and a more balanced playing field for both buyers and sellers. In many ways, those hopes are beginning to materialize: metro areas like Lincoln and Omaha are posting stronger closing volumes, and listings are slowly ticking up.
But a much bigger force looms over the market—the broader economic picture. Major stock indexes are down more than 20%, shaking consumer confidence. Inflation persists, global tensions remain unresolved, and the Federal Reserve has yet to cut rates. All of this adds up to a housing market walking a tightrope. As we enter the heart of the spring selling season, the next few months could be pivotal. Let’s take a closer look.
Mortgage rates remain a dominant force shaping buyer behavior. After peaking at an average of 6.83% in April, the 30-year fixed rate has shown little movement in May. Hopes for a mid-year decline have been tempered by persistent inflation and cautious Fed policy.
Buyers are responding in a variety of ways:
Some are pressing pause, waiting for rates to improve.
Others—especially those with pressing life needs like growing families or job relocations—are moving forward, adapting to current conditions.
Creative financing is on the rise, including rate buydowns, adjustable-rate mortgages, and lender-paid incentives. Buyers willing to broaden their search area or accept homes that need updates are often finding better deals. In this market, success favors those who are well-prepared—armed with strong pre-approvals, knowledgeable agents, and a patient, strategic mindset.
The market may not be as frenzied as years past, but opportunities remain for sellers—if they approach things smartly.
Today’s buyers are more discerning. They expect homes that are:
Priced competitively
Move-in ready
Professionally presented
Homes that check these boxes are still moving quickly. Overpriced or underprepared homes, however, are languishing. In neighborhoods with limited supply, turnkey properties are drawing strong interest. Sellers who treat their home sale like a product launch—complete with thoughtful pricing, strategic updates, and polished marketing—are seeing the best results.
One of the more encouraging shifts this year has been the gradual increase in housing inventory. Lincoln and Omaha, for example, are seeing more listings month over month. But we’re far from a balanced market.
A major constraint? Many homeowners are holding onto ultra-low mortgage rates from prior years. This “rate lock-in” effect is keeping resale inventory tight.
New construction is helping, but not without hurdles:
Tariffs on key materials have added $9,000+ to the average new home.
Labor shortages and permitting delays are stretching timelines.
Still, for buyers open to longer waits or emerging neighborhoods, new builds offer attractive incentives—like rate buydowns and design credits—that can help offset higher base prices.
Real estate is always local, but in 2025, it's more regionally distinct than ever.
Hot spots like Miami, Phoenix, and Raleigh continue to thrive, driven by job growth and migration. By contrast, some Midwestern and Northeastern markets are cooling, with more negotiation and longer days on market.
On a national scale, economic headwinds are complicating decisions:
Inflation remains sticky
Wage growth is inconsistent
Market volatility is keeping many buyers on edge
For some, these dynamics mean hitting pause. For others, it means moving based on personal timelines rather than waiting on perfect market conditions.
Control what you can. While rates may stay elevated for now, that doesn’t mean buying is off the table. Success lies in being flexible, informed, and strategic.
Three essential tips:
Get fully pre-approved, not just pre-qualified. Work with a lender who can explore options like buydowns or ARMs.
Broaden your search. Consider nearby neighborhoods or homes that need light updates—you’ll face less competition and may get a better deal.
Act with confidence. When the right home appears, be ready. The most prepared buyers—not necessarily the highest bidders—often win.
Thinking of selling? The market still favors you—but only if you bring intention to the table.
What works now:
Price it right from the start. Even slight overpricing can stall interest.
Prepare thoroughly. Clean, stage, update, and boost curb appeal.
Market smartly. Invest in professional photography and ensure your listing gets the right exposure.
Homes that feel cared for and well-positioned are still commanding strong offers, especially where inventory remains tight.
May is a crucial month that sets the stage for the rest of the selling season. Will inflation ease? Will rates shift? Much remains uncertain. But what is certain is that people will continue to move, driven by life events that don’t wait for economic clarity.
If you’re considering a move this summer—or just want to understand your options—it’s a great time for a conversation. No pressure, just real insight into what’s possible in today’s market.
Ready to talk strategy? Reach out today for a no-obligation discussion on how you can move forward confidently in 2025’s evolving housing landscape.
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