Market Rebalancing: Buyers Finally Catching a Break

April brought a breath of fresh air to the housing market, especially for new construction. New home sales shot up nearly 11%—the biggest monthly gain in two years. Inventory’s on the rise too, up 9% year-over-year, and buyers are getting more room to negotiate as the median price dipped 2% from last year.

Existing home sales saw a slight dip, but the upside is more listings. The National Association of Realtors says we’re at the highest inventory level in nearly five years, giving buyers better footing in negotiations—something we haven’t seen in quite a while.

Although prices are still climbing overall, they’re doing so more slowly. First American reports price growth is at its slowest pace since 2012, signaling that the market is beginning to level out. In my view, that’s a good sign for long-term stability.

Over in the stock market, recent gains were rolled back as investors took profits. Moody’s downgrade of the U.S. credit outlook, plus talk of new tariffs, added pressure. All major indexes dropped around 2.5% for the week. Mortgage rates inched up slightly but remain below last year’s levels, and the job market still looks solid, with unemployment claims staying low.

Looking ahead, pending home sales may dip a bit after March’s rise. We’ll also get fresh data on home prices and inflation, with Friday’s PCE report offering insight into where the Fed stands on interest rates. Many expect the first rate cut to come in September, depending on how inflation behaves.

In summary, I think we’re finally seeing a more balanced market take shape—more listings, slower price growth, and better opportunities for buyers to make smart moves.

Source Inspiration: Realtor.com