New Fannie Survey Finds Increased Buyer Optimism
According to Fannie Mae's latest National Housing Survey, overall confidence in the housing market is rising. Their Home Purchase Sentiment Index (HPSI) for May 2025 rose to 73.5, which is up 4.3 points from April, and 4.1 points higher than May 2024.
Here are more takeaways:
- Seller confidence rose as well, which could have a positive effect on the number and quality of homes entering the market soon.
- One of the biggest opinion shifts in this survey: more people thought that mortgage rates might come down.
- Nearly half of the people surveyed think home prices will go up over the next year, while fewer expect prices to fall.
- Fewer people are worried about losing their jobs. This may help boost buyer confidence during the summer months.1
Sellers Outnumber Buyers by Over 30%
Recent industry data found that U.S. home sellers now outnumber buyers by 33.7%. This is the widest gap in over a decade, with 1.9 million sellers and 1.5 million buyers in April 2025.
Miami, Florida leads the buyer's markets with nearly three times more sellers than buyers, with four other Florida cities—Fort Lauderdale, Jacksonville, Orlando and West Palm Beach—trailing closely.
Other popular metros where sellers outnumber buyers include Austin, TX; Phoenix, AZ; and Las Vegas, NV.
Condo sellers face the steepest challenge, with 83.5% more sellers than buyers nationwide.
There are several economic factors driving 2025's market shifts. In addition to higher mortgage rates, buyers are also concerned with rising property prices and growing economic uncertainty. It can translate into more opportunities for agents who understand how to navigate a buyer-leaning market.2
Creating a Thoughtful Business Plan
Unless you've already completed a 2025 business plan, you may want to review or edit what you have now. Here are some topics that deal more with your feelings than finances; they can help you retain focus and set yourself apart from the competition.
Identify who you are, and why. This can be similar to composing a mission statement, as you need to state what types of problems you can solve, and the difference you want to make when working with clients. This is especially helpful if you're considering a niche specialty.
Ask yourself what your core values are. These shape your behavior, decisions, and how you interact with clients, prospects, and other agents. For example, you may have decided to specialize in first-time buyers because you want to help build new, strong communities that will benefit from your support.
Identify your ideal client. Who are you best suited to work with during a major financial transaction? Questions to ask include their family situation, motivation, income level, and biggest fears about the real estate process. This task enables you to perfect your marketing messages and build stronger relationships with future clients.3
More Than Ever, There's No Place Like Home
If you're short on social media ideas this month, consider taking some tips from a recent Redfin survey. Instead of sticking to questions about home buying basics, it also looked at the emotions behind home ownership.
- Almost 70% of respondents said that their home's details and decor are reflections of who they are.
- Nearly three-quarters of homeowners said they'd rather be at home than anywhere else. Around the same number claimed that their home was the only place where they could relax.
- Nearly 7 in 10 (68%) homeowners say their home is the only place they can relax, and 68% say it's the only place they can get a good night's sleep.
Springtime Luxury Home Sales Postponed
A typical luxury home is often defined as one of the top 5% most valuable homes within a region. On a national basis, median prices for these homes are around $1.8 million, although buyers will pay considerably more in major metro areas.
These properties are most expensive in California, with sticker prices over $5 million in Los Angeles and San Jose, and around $4.8 million in San Francisco.
Only a few popular cities saw prices fall year-over-year. Luxury homes in Austin, Texas fell over 2% to around $2.4 million, and Tampa property prices slid by 1.7% to around $1.8 million.5
Sources: 1themortgagereports.com, 2nowbam.com, 3theclose.com, 4redfin.com, 5zillow.mediaroom.com
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