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Consumer Sentiment Shows Signs of Optimism

According to the latest University of Michigan survey, consumer confidence improved in June for the first time in half a year. The sentiment index jumped to 60.5, up from 52.2 in May. While it’s still 11.3% lower than this time last year, and 20% below December 2024, the rebound offers a hopeful signal.

Key highlights:

• The consumer expectations index surged nearly 22% from May.
• Improvement was seen across age groups, income levels, political affiliations, and geographic regions.
• Concerns over tariffs have eased, contributing to this shift in perception.

That said, caution persists. Confidence surrounding business conditions, personal finances, large purchases (like homes), and labor and stock markets remains below levels seen six months ago. Inflation expectations for the year ahead dropped from 6.6% to 5.1%, and long-term expectations also nudged lower. However, both figures are still above where they stood in late 2024, showing lingering uncertainty around trade policy and inflation risks.

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Home Listings Surge as Sellers Re-Enter the Market

The U.S. housing market is experiencing a meaningful shift. In May 2025, Realtor.com reported a 31.5% increase in active listings compared to the previous year—the 19th consecutive month of growth. Inventory has finally surpassed 1 million homes for sale, a milestone not seen since 2019. Still, total inventory remains 14% below pre-pandemic levels.

What’s driving this?

• Homeowners are accepting higher mortgage rates as the new normal and moving forward with plans to sell.
• Major inventory increases were noted in Western and Southern markets like Denver, Austin, and Seattle.
• The Midwest and Northeast continue to lag in available inventory.

Even with more homes hitting the market, affordability is still a challenge. Buyer demand has softened, with pending sales down and price growth slowing—some regions are even experiencing price declines. Should mortgage rates decline later this year, we may see a more buyer-friendly environment emerge.

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Fannie Mae Forecast: Home Price Growth to Cool Through 2026

New data from a Fannie Mae survey of 107 housing experts and economists predicts a moderation in price growth over the next two years:

• 2.9% average growth expected in 2025
• 2.8% growth forecasted for 2026

In Q1 of 2025, home prices were up 5.2% year-over-year, based on Fannie Mae’s National Home Price Index. While some experts predict continued increases of up to 6.5%, others anticipate potential declines as steep as 4.3% in 2025 and 7.2% in 2026.

Top projected price growth markets:
Boston, New York, and Philadelphia
Markets expected to underperform:
Tampa, Austin, and Dallas

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Upcoming Market Movers to Watch:

• Monday, June 23: Existing Home Sales
• Tuesday, June 24: S&P Case-Shiller Home Price Index (20 Cities), Consumer Confidence
• Wednesday, June 25: New Home Sales
• Thursday, June 26: Initial Jobless Claims, Pending Home Sales
• Friday, June 27: U.S. Consumer Sentiment, Personal Income, Personal Spending

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As inventory builds and sentiment shifts, this could mark a pivotal window for both buyers and sellers on Skidaway Island. With more homes coming to market and price growth projected to stabilize, sellers may benefit from listing before competition increases further, while buyers could find expanded options and negotiating power not seen in recent years. Whether you’re considering selling your home in The Landings or looking to make a move into one of Skidaway’s other sought-after neighborhoods, now is the time to reassess your strategy with a local expert who understands the nuances of our island market.

Call Cristina Callegari, The Skidaway Island Real Estate Expert to learn more about the island’s real estate market.