As the year began, the housing market appeared poised for a meaningful rebound. Inflation was trending downward, the economy looked strong, and mortgage rates were easing. Inventory across many regions, including Cape Cod and Greater Boston, was on the rise. But the window of optimism didn’t last long.
A series of external shocks—most notably the April 2 announcement of sweeping global trade tariffs—rattled financial markets and sent mortgage rates climbing once again. As of late May, the average rate for a 30-year fixed loan had jumped to 6.89%, putting renewed pressure on already strained buyers and reversing some of the early-year momentum.
Buyer Hesitation Takes Hold
Nationally and regionally, the market has cooled in both visible and subtle ways. Transactions have slowed. Inventory is climbing, but not always for the right reasons. And while prices remain high, urgency has faded. Many buyers are pausing—some due to affordability concerns, others due to broader economic uncertainty.
“It’s not that buyers aren’t out there—it’s that they’re being extremely cautious,” said Alfred Schofield, co-founder of the Guthrie Schofield Group. “We’re seeing qualified buyers who love a property, but they hesitate. The mindset has shifted from FOMO to strategic waiting.”
This sentiment is backed by national data. In April 2025, existing home sales fell 2% year-over-year, and pending sales declined in every region but the Midwest. While median home prices rose 1.8%—marking 22 consecutive months of annual price growth—many buyers feel boxed out by high monthly costs.
Today, the average mortgage payment on a U.S. home exceeds the cost of renting by roughly $100/month, even after a 10% down payment. In high-cost markets like Boston and Cape Cod, that gap can be even more pronounced.
Sellers Face Their Own Bind
While buyers wait, sellers are also caught in a bind. Nearly 60% of U.S. homeowners have mortgage rates below 4%. Selling often means walking away from historically low borrowing costs—and into a much higher rate on the next purchase. As a result, most homeowners aren’t refusing to sell—they’re simply holding the line on price.
“Sellers are anchored to past value,” said Tony Guthrie. “Many would rather take the home off the market than reduce the price materially. And because they’re not under pressure, there’s no motivation to meet the market where it is.”
Even in vibrant submarkets like Chatham or Osterville, properties that would’ve drawn multiple offers 18 months ago are now seeing limited showings and more drawn-out negotiations. It’s not a collapse—it’s a stalemate.
Inventory Is Up—but Impact Is Uneven
Across the country, inventory has returned to its highest level since January 2020. According to Redfin, there were nearly 500,000 more homes for sale in April than buyers actively in the market—the largest gap recorded since 2013. But more doesn’t always mean better. Many of the homes hitting the market are overpriced, outdated, or mispositioned.
“There is more inventory, but not necessarily more desirable inventory,” said Wesley Krell of the Guthrie Schofield Group. “The properties that are priced right, prepared well, and thoughtfully marketed still move—often quietly and quickly. But those that miss on positioning tend to linger.”
What This Means for You
For sellers: it’s not enough to list. In a climate where buyers are cautious and headlines are mixed, properties must be strategically priced, professionally marketed, and clearly differentiated. Presentation and narrative matter more than ever.
For buyers: now is a time to stay informed and prepared. While fewer bidding wars and more negotiable terms are welcome changes, long-term success still hinges on timing, due diligence, and decisive action when the right property emerges.
At the Guthrie Schofield Group, we bring decades of combined experience in navigating changing markets. We understand how to craft the right story, price with precision, and create outcomes that align with your goals—whether you’re buying your first Cape home or selling a generational estate.
Questions about today’s market? Let’s talk.
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