Real Estate Market Update: Why Does The Market Feel So…Off!

There's something very different going on in the real estate market right now, and if you've been watching the market at all, then I'm sure you've noticed it too. But homes just aren't selling like they used to, and buyers are nowhere to be seen. So in this video, I'm going to take a closer look to see if we can figure out what's going on. Hi, my name is Casey, and on this channel, I share tips and information about the real estate market here in Corona, California. And I have to be honest, there's something about the housing market right now that just feels off. And if you've been trying to buy or sell a home, I'm sure you've felt it too. We're definitely seeing more homes for sale, and this by itself isn't necessarily a bad thing. But when you combine it with the fact that buyer demand has almost completely disappeared, well, things just don't feel right. So let's jump in and take a look at the housing market and see if we can figure out what's going on. First, homes are sitting on the market longer. And as I just mentioned, we are seeing more homes for sale too. But the problem is we just aren't seeing many buyers looking at homes right now. And this means homes are sitting on the market longer, and they're taking much longer to sell. And if you look at the first quarter of 2025 here in our local communities, it was taking 104 days to sell a home in the community of Taramore, and 86 days to sell a home in Trilogy. And from what I've seen so far in the second quarter, I can guarantee these numbers will be going up. But the urgency that we used to see from buyers in the past few years has gone, and buyers are sitting on the sidelines. Next, mortgage rates. Now, current mortgage rates are still hovering right around 7%, and this is probably the biggest reason for the slowing housing market. Buyers are hesitant to take on these higher mortgage rates. And even though many buyers are in a good financial position, they're asking themselves, is now really the right time? And a lot of buyers have been listening to the experts who've been predicting that mortgage rates will fall this year, but we just haven't seen that happen yet. And now most of these same experts are saying that rates will fall slightly this year, but probably only into the low to mid-6% range. And from the buyers I'm speaking to, it's just not a big enough drop for them to jump back into the market. Next, economic uncertainty. Now, between the economy, concerns about inflation, and the mortgage rates we just talked about, people are nervous. And to make matters worse, here in California, it was just announced that the state is facing a $12 billion budget deficit. Plus, there's even talk of another 65 cent a gallon increased or already ridiculous gasoline taxes. And in my conversations with buyers and sellers, I can tell you that people are frustrated and very nervous right now. So what does this mean if you're trying to buy a home? Well, I've said this before, but now might actually be a good time to buy. Since the housing market has slowed down, buyers are definitely in a better position. They have a lot more homes to choose from, they have more time to make a decision, and in many cases, they even have more room to negotiate. And in both Trilogy and Terramore, I can tell you there are a lot of very motivated sellers and some great deals right now. And what if you're a seller? Well, you have to set realistic expectations. Homes just aren't flying off the shelf in a weekend anymore. It's important to look at the numbers and set a realistic expectation for how long it may take to sell your home. Next, pricing. Now, if you've watched any of my previous videos, you know I talk about pricing a lot. And I do this because it's by far the biggest mistake sellers make. And I know I've said this a thousand times, but I'm going to say it again. You have to price your home correctly from the start. But many sellers say things like, I want to test the market. And then they said they're asking price too high. And the justification is always the same. I can always lower the price if I have to. And I can tell you from experience, this strategy very rarely works. And it usually ends up badly for everybody. But in this market, buyers simply aren't going to overpay for a home. In fact, a lot of buyers won't even come out and look at your home if it's overpriced. And we have several homes on the market right now that haven't had a single showing in weeks. And this is not what you want if you're trying to sell your home. And you can't determine the asking price of your home by saying things like, well, my neighbor got this much, so I should get this much too. It just doesn't work this way. First, your home may be the exact same size as your neighbor's home, but your neighbor may have put in $200,000 worth of upgrades into their home. Or maybe your neighbor's home is on the view side of the street and has an amazing view. You have to factor in these things if you want to get a realistic value for your home. Now I could go on and on about pricing, but just know that a lot of sellers end up overpricing their homes. And sadly, many end up very frustrated and disappointed. Now I talk with buyers, sellers, and other agents almost every day. And everyone's trying to figure out what's going on in the housing market. But if you're considering buying or selling, and you'd like to talk through your options, feel free to reach out and give me a call. You'll never get pressure from me, and I'll give you my honest opinion, and then you can decide what's best for you. Now I'll put my contact information up on the screen, and you can always find it in the description down below too. Now, thanks again for watching, and I'll see you in the next video.