Anxiety is shaping the housing market

Summary

Marketplace Morning Report: "Anxiety is Shaping the Housing Market"

Episode Release Date: July 28, 2025
Host: Marketplace's David Brancaccio

In this insightful episode of the Marketplace Morning Report, host David Brancaccio delves into the multifaceted ways anxiety is currently influencing the U.S. housing market. Through expert interviews and comprehensive analysis, the report examines economic policies, market dynamics, and consumer sentiment shaping the decisions of homebuyers and sellers alike.

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1. U.S.-EU Trade Deal and Its Economic Implications

Sabri Beneshore opens the discussion by highlighting the recent U.S.-EU trade agreement. The deal reduces the previously threatened 30% tariff on European goods to a 15% tariff, with notable exceptions for aircraft and generic drugs.

[01:07] Sabri Beneshore:
"The U.S. and the EU have reached a trade deal. The U.S. will impose a 15% tariff on EU goods. That's down from the 30% that was threatened."

Julia Coronado from Macro Policy Perspectives analyzes the market's positive reaction to the deal but underscores the mixed outcomes for American consumers.

[01:34] Julia Coronado:
"It is not as bad as was threatened, but it is also a deal that does mean that Americans will be paying higher tariffs. The tariff is 15% on European imports. That's up from the current 10% that has been in place since April. So it's kind of a bad news, good news situation."

She further explains that while the tariff reduction averts the highest penalties, the increase from 10% to 15% still poses challenges, leading to rising prices and sustained economic uncertainty.

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2. Upcoming Economic Data Amid Policy Uncertainty

Beneshore transitions to the impending economic reports, including inflation rates, GDP growth, and employment figures, questioning their reliability in the current climate of policy uncertainty.

[02:00] Sabri Beneshore:
"How revealing are these [economic data] going to be given all of the economic policy uncertainty we've had for the past few months?"

Coronado anticipates that the data will reflect the strain caused by existing policies, indicating a slower economic pace compared to the previous year, continued deceleration in hiring, and a slight uptick in inflation due to increased consumer prices.

[02:12] Julia Coronado:
"The data are expected to show some strain from the impact of these policies. The economy is running at a slower pace than it was last year. Hiring is expected to continue slowing and inflation is expected to tick up based on the higher prices that consumers have to pay."

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3. The Housing Market: Rising Anxiety Among Buyers

Shifting focus to the housing sector, Sabri Beneshore introduces a report from Bright MLS marketplaces, featuring Samantha Fields, who highlights the growing economic uncertainty as a significant factor deterring potential homebuyers.

[02:32] Sabri Beneshore:
"To that list of reasons, you can now add economic uncertainty. That is according to a new report from Bright MLS marketplaces. Samantha Fields has more in the last."

Samantha Fields reports that three out of four real estate agents have had buyers pause their home searches, a noticeable increase from the previous year.

[02:59] Lisa Sturtevant (Bright MLS):
"3/4 of real estate agents have had a buyer they were working with pause their home search. That's up significantly from a year ago."

The primary reasons cited include affordability issues, elevated home prices, and high mortgage rates. However, economic uncertainty and broader financial concerns are now increasingly influencing buyer hesitation.

[03:09] Samantha Fields:
"The reasons buyers had stopped looking was primarily due to affordability, high home prices, high mortgage rates. And while those are still a factor, growing general economic uncertainty and other financial issues have become more important reasons."

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4. Market Dynamics: Adjusting to High Rates and Prices

Jake Krimmel provides his perspective on the shifting dynamics, suggesting that high mortgage rates and elevated home prices are becoming normalized features of the current market rather than temporary obstacles.

[03:36] Jake Krimmel (@realtor.com):
"At this point, high rates are a feature of the market, not a bug. And sort of the same thing with prices, right?"

Lisa Sturtevant concurs, noting a significant rise in the number of homeowners listing their properties only to delist them shortly after, indicating growing frustration with the stagnant price growth.

[03:42] Lisa Sturtevant:
"There has been a nearly 50% increase in people listing their home and then delisting it. So although there are more sellers on the market this year, it also appears that more are growing discouraged by the market itself and more buyers are growing anxious about the uncertainty in the market."

This behavior reflects a volatile environment where both buyers and sellers are grappling with unpredictability, leading to reduced transaction volumes and increased market hesitancy.

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5. Consumer Sentiment and Decision-Making

Samantha Fields underscores how rising anxiety affects consumer behavior, particularly in making significant financial decisions such as purchasing or selling a home.

[04:10] Samantha Fields:
"We've seen consumer sentiment survey data show people are a little bit more anxious. When people are uncertain, they do tend to hold off on big decisions like buying or selling a home."

Lisa Sturtevant echoes this sentiment, emphasizing that economic uncertainty is a powerful deterrent, even surpassing traditional factors like price and mortgage rates.

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6. Broader Economic Reporting: Lithium Mining in Chile

While the episode primarily focuses on the housing market, it also touches upon global economic issues, including Chile's efforts to ramp up lithium production—a critical component for electric vehicle batteries—and the associated environmental and social costs.

Sabri Beneshore reports on Ione Wells's findings from Chile, highlighting the tension between economic development and indigenous community concerns.

[05:59] Sabri Beneshore:
"That's reporting from the BBC's Ione Wells in Chile."

Ione Wells describes the Atacama Desert, home to the world's largest lithium reserves, and the push by the Chilean government to increase production to support the global transition to renewable energy. However, indigenous communities like the Paine are apprehensive about the environmental degradation and cultural impact.

[07:07] Jake Krimmel:
"We understand that the world needs to transform conventional energy into renewable energy, and for that, lithium is very important. But we also don't want to be the bargaining chip for that development."

Faviola, a biologist from the indigenous community, voices concerns over the irreversible changes caused by lithium mining.

[08:04] Faviola:
"Lithium mining has changed the lagoons here. Now they are smaller. We've seen a decrease in the reproduction of flamingos. If they reinject water and return it to the Salar de Atacama, it will not be the same. We don't know if the rock will resist it."

This segment underscores the complex interplay between economic advancement and environmental stewardship, reflecting broader themes of anxiety and uncertainty that resonate with the housing market discussion.

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Conclusion

The Marketplace Morning Report episode "Anxiety is Shaping the Housing Market" provides a comprehensive analysis of how economic policies, market conditions, and consumer sentiment are intertwining to influence the U.S. housing landscape. Through expert insights and on-the-ground reporting, the episode paints a nuanced picture of a market grappling with elevated prices, high mortgage rates, and pervasive uncertainty, ultimately shaping the decisions of both buyers and sellers in profound ways.

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For more detailed discussions and updates, listeners are encouraged to tune into the full podcast episode.

Transcript

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[Sabri Beneshore]

What'S in the latest trade deal from Marketplace? I'm Sabri Benishore in for David Brancaccio. The U.S. and the EU have reached a trade deal. The U.S. will impose a 15% tariff on EU goods. That's down from the 30% that was threatened. There are exceptions for aircraft and generic drugs which would not be tariffed. We've got Julia Coronado with Macro Policy Perspectives here to talk about that and more. Julia, markets reacted positively to the trade deal. What is your take?

[Julia Coronado]

Well, it is not as bad as was threatened, but it is also a deal that does mean that Americans will be paying higher tariffs. The tariff is 15% on European imports. That's up from the current 10% that has been in place since April. So it's kind of a bad news, good news situation. It's not the peak that was threatened, but it's also rising prices and rising tariffs.

[Sabri Beneshore]

This week we are getting a ton of economic data. Inflation, gdp, employment. How revealing are these going to be given all of the economic policy uncertainty we've had for the past few months?

[Julia Coronado]

Well, the data are expected to show some strain from the impact of these policies. The economy is running at a slower pace than it was last year. Hiring is expected to continue slowing and inflation is expected to tick up based on the higher prices that consumers have to pay.

[Sabri Beneshore]

Macro Policy Perspectives Julia Coronado, thank you so much. Tomorrow we get the latest snapshot of home prices in the US from the Case Shiller Home Price Index. A lot of people who would like to buy homes have felt stuck, stuck, held back by high prices and high mortgage rates. To that list of reasons, you can now add economic uncertainty. That is according to a new report from bright MLS marketplaces. Samantha Fields has more in the last.

[Lisa Sturtevant]

Month, 3/4 of real estate agents have had a buyer they were working with pause their home search. Lisa Sturtevant at Bright MLS says that's up significantly from a year ago.

[Samantha Fields]

And the reasons buyers had stopped looking was primarily due to affordability, high home prices, high mortgage rates. And while those are still a factor, growing general economic uncertainty and other financial issues have become more important reasons.

[Lisa Sturtevant]

Nearly 60% of would be buyers who paused their search last year said it was because prices and or rates were too high. Now less than 50% site prices and less than 40% mortgage rates.

[Jake Krimmel]

@ this point, high rates are a feature of the market, not a bug. And sort of the same thing with prices, right?

[Lisa Sturtevant]

Jake [e-mail] says it seems like buyers and sellers are getting used to it. But sellers don't seem to be getting used to the fact that price growth has slowed way down. There's been a nearly 50% increase in people listing their home and then delisting it.

[Jake Krimmel]

So although there are more sellers on the market this year, it also appears that more are growing discouraged by the.

[Lisa Sturtevant]

Market itself and more buyers are growing anxious about the uncertainty in the market, says Lisa Sturtevant at Bright mls.

[Samantha Fields]

We've seen consumer sentiment survey data show people a little bit more anxious. When people are uncertain, they do tend to hold off on big decisions like.

[Lisa Sturtevant]

Buying or selling a home. I'm Samantha Fields for Marketplace.

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[Jake Krimmel]

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[Sabri Beneshore]

Of lithium, a critical component of batteries for electric vehicles. Chile's government wants to ramp up processing of that lithium, but that comes with costs to local ecosystems and indigenous groups. The BBC's Ione Wells filed this report.

[Ione Wells]

Walking through Chile's Atacama Desert feels a bit like walking on a moon. Miles and miles of flat white land, big crags of crunchy white salt underfoot and surrounded by big red mountains. This is home to the world's biggest reserves of lithium, the key ingredient for batteries in things like electric cars. A lot of it is still untapped, though, but the government wants to change that. It says this is crucial for the global fight against climate change. But local indigenous communities not so sure. Sergio Corbilios is the president of the Paine indigenous Community. He recognizes why lithium's needed for the green revolution, but is worried about the impact on his community here.

[Jake Krimmel]

There is, of course, the issue of climate change, that it doesn't rain anymore. But the main impact here has been caused by mining. They use millions and millions of cubic meters of brine. We understand that the world needs to transform conventional energy into renewable energy, and for that, lithium is very important. But we also don't want to be the bargaining chip for that development.

[Ione Wells]

The Chilean government says production is being increased in dialogue with indigenous communities and incorporating new technologies to minimise the social and environmental impact. It says it will bring economic opportunities and that 30% of the salt flats and lagoons will be protected. Faviola is a biologist from the indigenous community here. She doesn't think it's fair that these lithium companies are using millions of litres of water in the name of tackling climate change to the detriment of the ecosystems here.

[Faviola]

Lithium mining has changed the lagoons here. Now they are smaller. We've seen a decrease in the reproduction of flamingos. If they reinject water and return it to the Salar de Atacama, it will not be the same. We don't know if the rock will resist it. Unfortunately, we think the Salar de Atacama will be like an experiment, a laboratory.

[Ione Wells]

Companies and the government are obviously keen to sell the benefits of this new technology and hope it could provide some green solutions. But for people like Faviola, she's unclear why their lives should change in order to help other people keep living their lifestyles.

[Faviola]

Electrifying is not the solution. We all have to reduce our emissions. In developed countries like the US and Europe, the energy expenditure is much greater than here among US indigenous people.

[Sabri Beneshore]

That's reporting from the BBC's. Ione Wells in Chile. In New York, I'm Sabri Benishore with the Marketplace Morning Report from APM American Public Media.

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