Well, that blip of real estate sales activity we saw near the end of April in our local market was just that – a blip.

Momentum did not continue as we progressed through May, with sales once again trending behind 2024 levels. Keep in mind last year wasn’t exactly a robust market either.

As I write this near the end of May, about 77% of all sales in our market this month were under $900,000. Affordability remains a real issue. Sales over $1 million were lackluster, especially for 2 storey homes in newer subdivisions.

Historically, real estate sales peak in May and June, slow down in the summer months of July and August – with an uptick in September and October before things slow down once again in November and December.

Will this year buck the trend? Will summer be busier than normal due to the slower start in the first half of 2025? Will the fall market be stronger?

Personally, based on the data I am seeing, I now think the remainder of 2025 will look a lot like the first part of the year. Inventory levels remain at recent historic highs due to lower sales activity.

Downward pressure on real estate pricing will continue. But the standoff between sellers and buyers also continues for now – with many sellers hesitant to lower prices and buyers not willing to meet seller price expectations.

But the standoff between sellers and buyers continues for now – with many sellers hesitant to lower prices and buyers not willing to meet seller price expectations.

Affordability issues combined with economic uncertainty is not a great recipe for the real estate market. The interesting thing I note is there are actually still a lot of sellers on the sidelines – not just buyers.

People that would like to upsize (and also downsize) are waiting given what they are seeing in the market. A lot of current activity is driven by “having to sell” as opposed to “would like to sell” (i.e. estate sales, relocating due to job transfers, personal circumstances like marital separations, health reasons, financial, etc.).

What happens if all those other properties hit the market too? But for now many are holding off – in part because they are concerned that they won’t be able to sell their place at a price they like, so why even offer on another place.

A lot of offers do have a sale of buyer property condition in them these days – which does complicate things – and leads to a much longer sales process.

Patience is definitely required. But this isn’t going to change anytime soon. It’s simply the kind of market we are in.

But how sellers and their realtors handle these kinds of offers is very important if you actually want to end up selling your home.

That will have to be the topic for another article – but having an experienced realtor is key in these situations.

Speaking of realtors, it would appear the great exodus of realtors from the industry has begun. Frankly, it is very tough in the world of real estate right now.

Many who started during the crazy Covid times writing up offers with no conditions and selling homes in 1 day are finding that this market is much different indeed.

To be brutally honest, this is not a time to be using “Cousin Joey” who sells 2 or 3 homes a year and will “give you a deal” on commission.

In this market, this could be a costly decision – much more than any commission you “save” (if the home sells at all that is).

Simply put, pick an experienced realtor who has the resources and ability to properly market your home and knows how to negotiate given current conditions. We are fortunate to have some great realtors in our local market.

Thinking of Selling? Feel free to reach out for an honest conversation on whether or not now is the right time for you to sell. Type of property and price are important factors in this regard.

Until next month, take care.

George