Navigating the current housing market remains a challenge. While spring is traditionally the start of the homebuying season, ongoing uncertainty has many buyers and sellers waiting for clearer signals. This real estate summary for March reflects minimal changes in most areas, as economic factors like inflation continue to influence home prices and market activity.
Let’s take a deeper look at this month in the 55+ housing market.
Mortgage Rates Hold Firm
While many were hoping for a continued downward trend, mortgage rates throughout March have only fluctuated incrementally, essentially remaining about the same in most regions. Early in March, rates dipped to 6.67%, only to climb back to 6.72% to finish out the month. March’s much-anticipated Federal Reserve meeting brought no change to mortgage rates, leaving most buyers feeling pessimistic about future decreases. However, two reductions are still expected later this year.
Home Inventory
While home inventory saw modest raises throughout February, the momentum didn’t appear to extend into March. It’s possible that many sellers were waiting to see how mortgage rates and tariffs would affect the market. According to Fannie Mae’s National Housing Survey, only 24% of consumers say it’s a good time to buy a home and 62% say it’s a good time to sell. Minimal changes in mortgage rates and concerns about the potential for lost jobs in the coming year fuel low consumer optimism.
Low consumer housing sentiment combined with the potential price increase on building materials mean the housing market could remain stagnant over the spring season. However, this isn’t necessarily bad news for buyers who are ready to purchase. Fewer buyers in the market means less competition, allowing buyers to choose the home of their liking.
Home Price Changes Are Likely Based on Location
While the national median home price growth has slowed substantially, median home prices vary from state to state and even county to county. For example, the median home price in Colorado is $662,000, while the median price in West Virginia is $261,000. In the state of Colorado, homes in Boulder County average about $776,990, but only $228,050 in Rio Grande County.
Although national home prices aren’t fluctuating overall, locational changes could signal potential increases or reductions in price. An influx of new residents in Florida and Texas following the pandemic led to increased home inventory to meet demand. Currently, supply outpaces demand, leading to lower prices. Many midwestern states that didn’t see the same demand during the pandemic are now seeing rapidly rising prices to meet growing demand. Homeowners can also expect to see home prices fluctuate in specific areas due to natural disasters and surging home insurance costs.
What 55+ Homebuyers Should Know About the Current Market
While minimal changes in mortgage rates and national median costs may price some buyers out of the market, many 55+ home seekers are facing a different buyer’s experience. Retirees depend less on economic factors like job layoffs, remote work, and career opportunities when searching for the ideal location to purchase a home. This can open up opportunities that other buyers may not be able to take advantage of. However, retirees are typically on a fixed income, which means small price fluctuations can make big differences.
Gain and Maintain a Low Credit Score
Your credit score is the key to having the power to choose between lenders. Check your credit score to see if it matches what lenders are looking for. Increase your score as quickly as possible by avoiding new debt and increasing payment amounts on your existing debt. Paying off credit quickly can significantly improve your score.
Shop Lenders to Protect Your Budget
While you may be tempted to work with your local bank to secure a mortgage loan, banks often charge fees that non-bank and online lenders don’t. Shop around for a no-fee lender and compare rates between lenders before getting a loan approval. When you find the right lender and apply for a loan, ask about locking in your rate to avoid being subject to unexpected fluctuations.
Fight High Mortgage Rates With a Bigger Down Payment
A higher down payment means lower mortgage premiums. The Fed’s rate hikes affect more than mortgage rates. They lead to higher interest rates on savings accounts. This means placing the money you’re saving for a down payment in a high-yield savings account can help you earn more for your down payment. Choose an account carefully based on the interest you’ll earn and how easily you can access your money when closing day arrives.
Assistance for 55+ Homebuyers
Typically, mortgage lenders rely heavily on current and future income amounts to verify the borrower’s ability to pay back the loan. Retirement income isn’t as easy to quantify as a yearly salary, making it one of the biggest concerns for seniors trying to obtain a mortgage loan.
Fannie Mae and Freddie Mac senior home buying programs help alleviate this worry with special programs that consider retirement assets. Fannie Mae has policies that allow eligible retirement assets to be used to qualify for a mortgage loan. If the buyer hasn’t yet started using the asset, the lender can compute the income stream the asset could offer. Similarly, Freddie Mac allows lenders to consider IRAs, 401(k)s, lump sum retirement account distributions, and proceeds from the sale of a business to qualify for a mortgage.
Finding Housing Opportunities During Uncertain Times
While the 2025 spring homebuying season doesn’t appear to be shaping up the way many buyers and sellers hoped, 2025 will still be a good time for many 55+ homebuyers to invest in their ideal retirement home. 55+ communities offer housing opportunities that can be more affordable than other neighborhoods. Also, active adult communities usually have added benefits like onsite amenities and a low-maintenance lifestyle.
If you’re ready to find your ideal 55+ community, 55places is here to help. Contact us today to learn more about how we can help you find your dream home.
