Real Estate Roundup: September 2, 2025
Leonard Steinberg, Compass Agent
The housing market is shifting under the weight of higher mortgage rates, tariffs, and rising costs. For buyers, sellers, and builders alike, uncertainty is the theme of the moment.
Builder Sentiment and Incentives
Single-family builder sentiment recently dipped to 32, signaling weaker buyer traffic. To attract activity, 37–38% of builders are cutting prices, and 66% are offering incentives. With borrowing costs still elevated, builders are working harder than ever to meet cautious buyers where they are.
Power Costs and “POWER-flation”
Electricity has emerged as one of the most pressing monthly costs for homeowners. While EV adoption contributes to demand, the real drivers are data centers and artificial intelligence. The Department of Energy expects data centers to consume up to 12% of U.S. electricity by 2028—a staggering rise from 4.4% in 2023. For perspective, U.S. homes account for 38% of consumption, while EVs remain below 1%. Depending on where you live, costs vary widely: Nevada offers the cheapest electricity, while Hawaii’s is 4X higher.
A Deferral Mindset
In its most recent earnings call, Home Depot described what many in real estate are already seeing: a “deferral mindset.” Consumers are delaying major decisions, whether it’s renovating a home or purchasing one. The reasons are many:
Waiting for lower mortgage rates
Concern about tariffs fueling inflation
Worries about job security in an AI-driven economy
Unease about record-high equity markets
Political division and global instability
Rising local taxes and insurance costs
Sellers holding out for higher prices
Buyers betting on further price declines
Concerns about corporate profitability if tariffs squeeze margins
This long list of “what-ifs” has created a culture of hesitation.
The Reality Check
Delays rarely resolve uncertainty—they simply trade one set of questions for another. And time, as the saying goes, is the last luxury. Here are three realities buyers and sellers should keep in mind:
If rates drop sharply, it’s usually because the economy is weakening.
When rates drop, demand jumps—prices tend to rise, and inventory shrinks.
If inflation stays sticky, replacement and construction costs rise.
In short, waiting may not deliver the certainty many hope for.
Final Thoughts
Markets will always cycle through phases of doubt, optimism, and recalibration. What remains constant is the need for housing, the importance of timing that suits your life—not just the economy—and the value of acting with clarity rather than hesitation. While the “deferral mindset” is understandable, the cost of waiting can be just as real as the risks of moving forward. For buyers and sellers alike, the most strategic move may be to make decisions based on personal goals, not just market noise.
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Featuring
Leonard Steinberg
Compass Agent
