Market Update: July

A NOTE FROM SMITH SPENCER

The housing market is giving it’s not you; it’s me energy.
Relationship status: complicated.

A whole lot of buyers are saying “actually... never mind.” According to Redfin, 14.6% of all pending sales in May fell out of contract. That’s the highest cancellation rate since they started keeping receipts back in 2017.

So why are buyers ghosting their deals? Blame it on the usual suspects of irreconcilable differences: rising costs, job market jitters, global uncertainty, and good old-fashioned cold feet. Even NAR’s chief economist Lawrence Yun is like, yeah, things are weird right now, citing stock market chaos, geopolitical drama, and a serious lack of chill in general. “Fluctuating markets and nervous consumers are leading to higher cancellation rates.” Buyers are spooked, tightening up, and asking to split the bill.

Bottom line: power is shifting. A Real Brokerage survey shows 43% of agents now say it’s a buyer’s market. Sellers are loosening up. They're more open to contingencies, price cuts, and actual conversations that don’t involve the phrase “best and final by noon.” In fact, around 40% of listings dropped their prices in June. That’s not a typo. That's opportunity knocking.

Interest rates? They’ve been dipping too. In late June, conventional 30-year rates slid from 6.925% to 6.678%. Not a landslide, but enough to make a difference. If you’re a buyer who is asking, “is now the right time?” — the answer isn’t “wait for perfection.” If you want sellers who are actually negotiating, homes that aren't going for $100k over ask, and a shot at locking in a better rate before the Fed does something weird again, this is your window.

Your Real Estate Matchmakers,
Erin & Stacy