Iran war upends spring housing

Key Points:

• The spring housing market is underperforming due to the war in Iran, which has negatively affected the U.S. economy, consumer sentiment, and mortgage rates that are now higher than previously forecasted.
• Real estate agents report that buyers are more concerned about the economy and mortgage rates than home prices, with mortgage rate worries increasing significantly from 26% to about one-third of agents citing it as a primary concern.
• Home prices are mostly flat or falling, but affordability is worsening, causing 19% of buyers to exit the market, and over half of agents have seen contract cancellations.
• Homes are staying on the market longer, with 31% of listings exceeding six weeks, and sellers are increasingly worried about time on market rather than price, leading some to delay listing their homes.
• Despite rising concerns, the market is still considered balanced or favoring buyers by most agents, though confidence has declined, and fewer agents expect market improvement compared to last year before the war.