National Real Estate Market Update

[Brandon Foster]

Hey everyone, Brandon Foster here! Hope you’re all doing well. I’m back with a national real estate market update, breaking it down in a way that’s easy to understand. Whether you’re looking to buy, sell, or just keeping an eye on the market, here’s what you need to know.

Let’s start with new home sales—they took a bit of a dip in January, dropping 10.5% from the previous month to about 657,000 units sold. That’s the lowest we’ve seen in three months and below what experts were expecting. A big reason? Harsh winter weather in the Northeast, Midwest, and South really slowed things down. Meanwhile, the West actually saw a 7.7% increase, despite some challenges like the California wildfires.

Another factor? Mortgage rates. In mid-January, rates hit an eight-month high, making it tougher for buyers to pull the trigger. But here’s the good news—rates have been trending down over the past few weeks. That could help bring some momentum back to the market as we head into the spring homebuying season. Plus, there are more homes on the market—inventory is now at 9.5 months of supply, the highest it’s been since 2007.

Now, let’s talk inflation—it’s still a hot topic. The Fed’s go-to inflation measure went up 0.3% in January and is now up 2.5% year-over-year. That’s actually the slowest it’s risen in a while, but it’s still higher than the Fed wants. And with concerns over tariffs and rising costs, a lot of people are wondering how that’s going to impact their wallets.

And speaking of concerns, consumer confidence took a hit. The latest numbers show a 7-point drop, bringing us to an eight-month low. This is the biggest decline since August 2021, and it looks like people are feeling uneasy about job security, inflation, and the economy overall. In fact, expectations for inflation next year jumped to 6%, and worries about the job market are at a 10-month high.

But here’s where things get interesting—business leaders feel totally different. CEO confidence jumped to the highest level in three years, hitting 60 in Q1 2025. More than half of CEOs think the economy is going to improve in the next six months, and 71% of them are planning to raise wages by at least 3%. That’s a good sign for the job market, even though businesses are still keeping an eye on risks like cybersecurity, geopolitical tensions, and new regulations.

Last thing—construction spending. It dipped slightly, down 0.2% from last month, but it’s still up 3.3% compared to last year. The big slowdown is in residential construction, which fell 0.5%, especially in the multifamily and home improvement sectors. With new home sales slowing and builder confidence dropping, we might see a continued slowdown in residential construction in the next few months.

So, what does all of this mean for you? If you’re thinking about buying, selling, or investing, now’s the time to pay attention to these trends. Things are shifting, but there’s opportunity if you know where to look.

As always, I’m here to help—so if you have questions or just want to chat about the market, let’s connect! Be sure to follow for more updates, and I’ll catch you in the next one.

Take care and talk soon!