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Spring Housing Market Heats Up Amid Price Cuts and Buyer Hesitation

Plus, the latest in market news.

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Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.

Today we're discussing the spring housing market. More homes are hitting the market this spring, giving buyers more options after years of low inventory. However, high mortgage rates and rising home prices are still keeping many would-be buyers on the sidelines, despite increased seller flexibility.

Plus, a look back at the last week of market activity.

So, let’s get into the Industry Chatter!

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INDUSTRY CHATTER

It’s finally spring, and for the first time in a while, the housing market is starting to show signs of life. After a long stretch of minimal activity, more “For Sale” signs are cropping up across the country. Inventory is climbing, which is good news for buyers who’ve been waiting for more choices—but the big question is: will people actually take the plunge?

Even with more homes on the market, buying isn’t exactly easy right now. Mortgage rates are still hovering around 6.65% for a 30-year fixed loan, which, while slightly better than earlier in the year, remains high by historical standards, according to NPR. And home prices haven’t cooled much either.

Over the past five years, the median price of a home has surged by about 47%, making affordability a major concern for many would-be buyers. Still, there are reasons for optimism. In February, the number of existing homes for sale was up 17% compared to the same time last year, and March saw a 10% increase in new listings, according to NPR.

The so-called “lock-in effect”—where homeowners with ultra-low mortgage rates felt trapped in their current homes—may be easing as life events, job changes, or simple restlessness nudge people to move. Realtor.com data shows that sellers are getting more flexible, with more than 17% of listings featuring price reductions in March—the highest level for any March since 2016.

But it’s not all smooth sailing. Pending home sales—homes under contract—were actually down 5.2% in March compared to a year ago, suggesting many buyers are still hesitant. That hesitation is especially evident in competitive markets, where buyers like one couple in Connecticut have found themselves outbid even after offering well above asking. Others are deciding to sit tight, worried about job stability or just burned out from the hunt.

Meanwhile, new rules around how agents are paid have added another layer of complexity. Buyers now have to sign an agreement outlining their agent’s compensation before they can even tour homes, and sellers are no longer automatically covering the buyer’s agent commission. While many agents say the change hasn’t had a huge effect yet, the added negotiations aren’t exactly making the process easier, according to NPR.

So while more homes are finally hitting the market, uncertainty still hangs over this spring season—leaving buyers and sellers alike wondering if this will be the moment when things finally start moving again.

MARKET RECAP

Global markets plunged in the first week of the new quarter after President Donald Trump announced sweeping new tariffs on Wednesday—an event he dubbed "Liberation Day."

Trump unveiled a set of retaliatory tariffs with differentiated rates depending on the trading partner. The announcement sparked backlash from analysts, who criticized the methodology and raised fears of retaliation from global trade partners.

China, the country with which the U.S. has the largest trade deficit, was hit with a steep 34% tariff, prompting Beijing to respond with similar countermeasures by the end of the week. The escalation marked the beginning of a new global trade war between the world's two largest economies.

Other key trading partners were also targeted: the European Union faced a 20% tariff, Japan 24%, and India 26%. Canada and Mexico were spared, as long as their exports complied with USMCA provisions.

The surprise severity of the measures sent shockwaves through markets, surpassing even the most pessimistic forecasts. A strong March jobs report offered little reassurance to investors, who remain focused on the looming economic fallout from rising tariffs.

Trillions Of Wealth Evaporates As Stocks Crash

Trillions of dollars in market value were wiped out from Wall Street.

The S&P 500 Index recorded its worst weekly decline since March 2020, when markets were devastated by the onset of COVID-19 lockdowns.

With the S&P 500 plunging 10.5% over Thursday and Friday, this marks only the fourth time such a sharp two-day drawdown has occurred in modern market history—joining October 1987, September 2008, March 2020, and now April 2025.

The Nasdaq 100 plunged more than 20% from its February all-time high, officially entering bear market territory.

Mega-cap tech stocks led the rout, with Apple Inc. posting its worst two-day drop since October 2008.

Financial stocks also suffered steep losses, with double-digit declines across JPMorgan Chase & Co., Citigroup Inc, Bank of America Corp., and others.

Oil prices bore the brunt of the sell-off. Crude dropped 10% on the week, hitting a four-year low, pressured by weakening demand expectations and a surprise announcement from OPEC+. The cartel disclosed plans for a larger-than-expected production hike starting in May, raising fears of an oversupply in global energy markets.

On Friday, Federal Reserve Chair Jerome Powell failed to soothe market concerns, reiterating "no hurry" on interest rate cuts and highlighting that the new tariffs could fuel inflation.

Meanwhile, Trump continued to publicly pressure the central bank, stating that now is the "perfect time" to lower interest rates.

Also on Friday, Treasury Secretary Scott Bessent defended the tariff plan, attributing the roots of the market collapse instead to China's DeepSeek AI breakthrough.

THE WEEK AHEAD

Economic Data

  • Monday: US consumer credit, Bank of Canada outlook survey

  • Tuesday: US NFIB optimism index and 3-year note auction

  • Wednesday: US Fed's March FOMC meeting minutes and crude oil inventories

  • Thursday: US consumer price index (CPI) and initial jobless claims

  • Friday: German CPI, Great Britain GDP, US PPI

Earnings

  • Monday: Levi Strauss & Co. (LEVI), Dave & Buster's (PLAY)

  • Tuesday: RPM International (RPM), Cal-Maine Foods (CALM)

  • Wednesday: Constellation Brands (STZ), Delta Air Lines (DAL)

  • Thursday: CarMax (KMX), Walgreens Boots Alliance (WBA)

  • Friday: Chase Bank (JPM), Wells Fargo (WFC), BlackRock (BLK)

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