The spring season typically represents the peak of real estate activity across the U.S.—but this year, shifting economic and political dynamics took some of the energy out of the market. As uncertainty around inflation, tariffs, and interest rates continues to weigh on consumers, both buyers and sellers showed a more cautious approach in May.

Still, while year-over-year sales were slightly down in most regions, the slowdown wasn’t dramatic and may reverse with future economic developments. It’s worth noting that much of the May data reflected deals made prior to the May 12 policy reversal on China tariffs, which sparked a strong stock market rebound and a bump in consumer confidence (though levels remain lower than historic norms).

Here are a few key highlights from this month’s report:

• Prices: Median sale prices increased slightly—up 1.3% for single-family homes and 0.7% for condos/co-ops compared to the same time last year.
• Inventory: Listings grew 6% month-over-month and 20% year-over-year, pushing months-of-supply to its highest level in over six years.
• Sales Volume: Transactions rose 11.5% from April but remained 4% below May 2024.
• Buyer Activity: 60% of homes went into contract within one month; 28% sold over asking.
• Cash Sales & Price Adjustments: 27% of sales were cash purchases. Price reductions hit a six-year high, and contract fallout rates increased to 6%, with 13% of deals facing delays in closing.
• Time on Market: The median time to offer acceptance was 27 days—quicker than April but slightly slower than this time last year.
• Distressed Sales: Still rare, ticking up to just 3% of transactions.

📘 Want to explore the full report and see how national trends may impact our local Southwest Florida market?
Read the full June 2025 Compass National Market Insights Report here: June 2025 Report