| I know what you are thinking. My commentary is going to all be about all the things the news is covering – gloom and doom – tariffs, interest rates, unemployment and how they will affect our market. But I’m not. Instead, I want to compare what is happening right now in our market, how it compares to what has happened in the past and what it could foretell for the future.
It may surprise you to know that, this spring, our local market acted the same as it has the last two years. It’s becoming a predictable story. Home prices soar at some point early in the year – typically referred to as the Spring market. In 2025, this Spring market began in January and lasted through the third week of February. As was true in 2023 and 2024, it was hot and frenzied, with multiple offers and over-asking prices (escalation addendums). Homes sold quickly if they were updated, clean, and move-in ready. Those that were not, stayed on the market longer with many not selling until they reduced the price one or more times.
So what now? My prediction is that the rest of this year will continue to behave the same as it did the last two years. If I’m right, home prices will slowly drop throughout the rest of the year. The key takeaway from this is that the spring price escalations continue to drive home values up. And, even though they fall later in the year, they don’t fall enough to see prices go down year-over-year. And thus, equity continues to increase.
Pro Tip: Looking to sell this year? Update your home to see a greater return on investment via escalated home prices and fewer days on the market. Worried about laying out cash? Windermere has programs that allow you to borrow money to update your home or do repairs that gets repaid at closing. I also work with a contractor who will update your home for no money upfront. Again, he’ll get his money at closing. When times are uncertain, sometimes we need to think outside the box. Call me and let’s get creative. |
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