I like to cut to the chase and get to what’s really happening in the residential real estate market.
We’ve got a lot to unpack, from inflation woes to a surprisingly resilient housing landscape.
Macroeconomic Trends: A Mixed Bag
July’s numbers are in, and they’re a bit of a head-scratcher. Inflation is still on the rise, with both consumer and wholesale prices climbing. It seems to be a persistent threat that’s not going away anytime soon. Yet, despite this, retail sales are holding strong, a testament to consumer resilience. Small business optimism is also back on the upswing, even amid the uncertainty. This tells me that while there are headwinds, people are finding ways to adapt and thrive.
Housing Market Snapshot: A Look Around the Country
Let’s zero in on some market data:
National: The national picture is a bit more optimistic. Existing home sales increased by 2.0% in July, and the median home price was up 0.2% year-over-year to $422,400. Inventory also saw a slight bump, giving buyers more options. The key takeaway is that the national market is showing resilience, with sales inching up. Median days on market: 63
California: The market here is cooling off a bit, but it’s far from a crash. July home sales trailed last year’s levels for the fourth straight month, with existing single-family home sales at a seasonally adjusted annualized rate of 261,820. The statewide median home price was $884,050, a slight dip from both June and July of last year. While affordability remains a challenge, it’s a more balanced market where deals are still getting done. Median days on market: 63
Florida: Florida’s market mirrored broader trends. Closed sales for single-family homes were down 2.8% from July of last year. However, the statewide median sales price was $410,000, a modest 1.7% decrease year-over-year. The supply of homes is at 5.4 months, a sign of a more balanced market compared to the previous year. Median days on market: 91
Texas: In Texas, the market followed typical summer trends with sales slowing and prices adjusting. For example, Central Texas saw a 7.9% decrease in sales from July 2024, with the median price at $435,000, down 3.3%. However, new listings and active listings are up, which is great news for buyers and suggests a more balanced market. Median days on market: 77
New York: New York’s housing market is experiencing a shift: while the statewide median price was up 4.9% year over year to $451,000 in July, closed sales were down 2.3%. Median days on market: 56
A Look at Today’s Agents: Experience Matters
This is the part that should resonate with all of us. The latest National Association of REALTORS (NAR) report highlights a trend: the industry is getting older and more experienced. The median age of NAR members is now 57, up from 55 last year, and the median number of years of experience has increased to 12, up from 10.
This shift isn’t just about age; it’s about wisdom.
A majority of agents — 74%— are “very certain” they’ll stick with real estate for the next two years. This is a powerful signal. Despite market shifts, agents are not giving up. They’re hunkering down, leveraging their experience, and preparing to tough it out.
So, what’s the takeaway?
- The market is shifting, not collapsing.
- The agents who are succeeding are those with the experience and commitment to weather the storms.
- This is a time to lean on your skills, adapt your strategies, and show your clients the value that only a seasoned professional can provide.
The market may be shifting, but this shows why experience really counts. Agents who know how to adapt and stick with it can still guide their clients through the ups and downs. It’s a good reminder that resilience and strategy go hand in hand in real estate.