Weekly Market Update: May 23, 2025

Consumer Confidence At A 70-Year Low

Here’s What Buyers Need to Know

Happy Friday, everyone! Let’s dive into the latest housing market data and what it means for buyers, sellers, and agents navigating today’s real estate landscape.

U.S. Credit Downgrade Shakes Markets

The week kicked off with significant financial news—Moody’s downgraded U.S. debt and securities to an AA1 rating. While this may sound like a story for Wall Street, the ripple effect touched all sectors, including real estate. Investor confidence took a hit, and early-week market volatility reflected growing uncertainty.

Consumer Sentiment Hits Historic Low

Tuesday delivered a surprising—and concerning—stat: U.S. consumer sentiment fell to 50.8, the lowest level since 1952. That’s a 70-year low. It tells us that Americans are feeling extremely cautious about the economy, and this emotional outlook often impacts big decisions like home buying and selling.

Existing Home Sales Slide

Thursday brought April’s existing home sales data, which showed a 0.5% decline—a bit worse than expected. More striking was the record-high number of contract cancellations.

While we don’t have hard data on the “why,” it’s likely tied to the steep decline in the stock market around that time. If a buyer was planning to use stock proceeds for a down payment, that strategy might’ve fallen apart when the markets dipped 20%.

First-Time Homebuyers Holding Strong

One bright spot in April’s data: first-time homebuyers made up 34% of all transactions. That’s a powerful signal that despite economic headwinds, entry-level buyers are still stepping up and securing deals. Encouraging news for anyone who thinks affordability fears have frozen this segment.

New Construction Sales Surge

To close the week, Friday’s new home sales report brought a refreshing twist: new construction contracts were up 10.8%. This suggests buyers are leaning into the flexibility and incentives often offered by builders—especially when inventory of existing homes remains tight.

Final Thoughts

This week’s data paints a complex picture: emotional hesitation is high, cancellations are up, and yet new construction is booming. For buyers, it’s essential to stay informed and nimble. For agents, this is the time to lean into education and strategy.

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