Cost of Owning a Home is Cheaper Today Than This Time Last Year

The Weekly Recap

Good morning and happy Friday! The price of a starter home in 200 cities across the US is now $1 million the US economy shrank 0.3% due to an increase in imports with firms trying to stock up on supply with tariff uncertainty. Warren Buffet owns more Treasury Bills than the Federal Reserve, Bitcoin is approaching the $100k mark once again, Bryant Park Grill is pulling a Jordan Belfort and is refusing to leave their space and Republicans pull the ultimate troll by naming a bill to stop lawmakers from making stock moves the ‘PELOSI Act’.

If you missed last weeks newsletter How’s The Market, you can read that through the link.

Cost of Owning a Home Is Cheaper Today Than This Time Last Year

Despite headlines that may suggest otherwise, the cost of owning a home has actually improved compared to this time last year. A combination of favorable market dynamics is offering buyers a more balanced landscape — and in some cases, genuine opportunity.

Interest Rates Are Down Year Over Year Mortgage rates have eased from the highs of 2023, directly impacting affordability. Even modest rate reductions translate into significant long-term savings, improving monthly cash flow for today’s buyers.

Inventory Is Rebounding Housing supply continues to improve. By the end of the year, inventory levels are expected to mirror those of 2019 — a pre-pandemic benchmark of market normalcy. More options mean less competition and greater negotiating power for buyers.

Median Home Prices Are Stabilizing: While prices are not declining sharply, the runaway appreciation of the past few years has cooled. Stabilized pricing creates predictability and allows buyers to plan with greater confidence.

Consumer Financial Health Remains Strong: Low unemployment and higher levels of household savings have kept consumers in a relatively strong position. Many buyers are entering the market with more cash on hand and better credit profiles, further enhancing affordability.

Whether you’re a first-time buyer or expanding your portfolio, the current environment presents advantages not seen in over a year. Lower borrowing costs, increased choice, and a more grounded pricing landscape all point to renewed value in homeownership.

If you’re evaluating your options, I’m happy to provide perspective based on your goals and timing.

Market Performance

Here are how some other indexes and asset classes have performed as of this Mornings opening bell.

NYC Market Update

Here is a view of new inventory that has come onto the NYC market over the past month as well as newly signed contracts in Manhattan.

Mortgage Rate Update

Mortgage rates declined again this week and is now 50bps lower today than at the same time last year as well as below the Q1 average rate of 6.83%. While tariff uncertainty is slowing the rate of the spring selling season, once there is less ambiguity we can expect pent up demand that may have been sidelined to hit the market place.

News You Can Use

• Treasury Secretary Says US is Closing In On a Trade Deal With Several Countries CNBC

• Starter Homes Cost At Lease $1 Million In over 200 US Cities CNBC

• US Economy Shrank 0.3% In First Quarter CNBC

• Goldman Sachs CEO Says Markets Will ‘Settle Down’ After a ‘Reset of Expectations’ Fox Business

• Hamptons Home Sales Have Surged in 2025 — With Prices Hitting a Record High NY Post

• Trump to Sign order Easing Auto Tariff Impact Bloomberg

• Tariffs and Stock Market Volatility Are Clouding Home Spring Shopping Season CNN

• Goldman Sachs Is Advising Countries Scrambling to Place Trump on Tariffs Wall Street Journal

• This Is the Largest Office to Residential Conversion in The World, And It’s in FiDi NY Post

• SPACs Are Thriving As IPOs Remain Dormant Axios

• Record US Goods-Trade Deficit Shows Weaker First-Quarter GDP Bloomberg

• Hawley Reignites ‘PELOSI Act’ Push to Ban Lawmakers from Stock Trading Fox News

• Bryant Park Grill Operator Refusing to Go Anywhere When Lease Ends Gothamist

• Warren Buffet Owns More US T-Bills than the Fed Economic Times

• 12 Completely Free Things to Do in May in NYC Gothamist

The Deep Insight

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