End of May 2025 Real Estate Update

As we enter into the busy summer real estate market, there are a few things you should know before you consider buying or selling real estate.

Moody Downgrades U.S. Debt

Moody's, citing rising debt in the United States, downgraded our country's credit rating from Aaa to Aaa1 due to concerns about the $36 trillion dollar debt pile.

Typically, when an entity's credit rating is downgraded it means that borrowing costs (interest rates) become more expensive (go up). As investors demand more return for the increase in risk.

As of the writing of this article (today) the 30 year mortgage rate is at 6.89% which is still lower than the 52 week high of 7.04%

Things to pay attention to this Summer

Inventory Levels + Days on Market + Price Reductions + Incentives + Interest Rate Increases + New Construction Incentives + Potential Price Decreases

Savannah Inventory Levels

The number of single family homes has significantly risen in the Savannah MLS. This increase in competition will make the summer months potentially a buyers market where buyers have many options and sellers may have to make concessions.

Conclusion

If we do see a spike in interest rates this summer due to the U.S. debt crisis, combined with the high inventory levels, we may start to see prices start to decline.