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As of May 2025, Boston and Cape Cod are seeing a notable shift in their real estate landscapes: rising inventory levels, softening buyer demand, and longer days on market. While more options might seem like a win for house hunters, the sudden surge in listings signals deeper uncertainty in the housing market, primarily tied to a steep dip in consumer confidence and fears surrounding new economic policies, particularly around international trade.
More Homes, Fewer Bidders
Boston has witnessed a sharp rise in active listings, with 2,493 homes for sale in April—up 31.8% from March. The increase spans all property types, indicating that many sellers are entering the market in anticipation of shifting conditions.
Cape Cod follows suit. Barnstable County reported 2,107 homes for sale, reflecting a 14.1% increase over the previous month. While closed sales also ticked up, the overall boost in supply points to a more balanced—if not cooling—market ahead.
Tariff Talk & Consumer Hesitation
One of the most significant headwinds? Consumer sentiment.
The University of Michigan’s Consumer Sentiment Index dropped sharply to 50.8 in May, levels typically associated with recessions. This decline is being linked to trade policy uncertainty. While the administration initially proposed a 145% tariff on certain Chinese imports, the increase has since been paused. The current average tariff on many Chinese goods remains closer to 25%, but the damage to market psychology has already been done.
Tariffs—whether imposed or simply proposed—create a ripple effect. Buyers fear rising prices, inflation, and tighter financial conditions. Many are hitting pause, hoping to “wait it out” and re-enter the market when the economy is more clear and confident.
What This Means for Sellers and Buyers
For Sellers: The surge in inventory creates more competition. Properties flying off the market last year now need sharper pricing, stronger marketing, and better presentation to attract serious buyers. Days on market are rising, and price reductions are becoming more common.
For Buyers: This is where the opportunity lies. After years of bidding wars and record-high prices, the pendulum is starting to swing. With more homes to choose from, less buyer competition, and sellers increasingly open to negotiation, this may be one of the best environments in recent memory to secure a better deal.
Buyers who remain financially stable and confident in their long-term plans should consider leveraging the moment, not retreating from it. There’s finally breathing room to negotiate on price, ask for seller concessions, and even include inspection contingencies that were off the table during the height of the seller’s market.
Final Thoughts
Boston and Cape Cod are entering a more nuanced real estate market. Rising inventory doesn’t automatically mean a crash, but it does mean the frenzy is cooling. With policy uncertainty and economic jitters weighing on confidence, the housing market will likely remain in a transitional phase for the months ahead.
Sellers need to adapt quickly. Buyers? They should see this moment for what it is: a window of opportunity that hasn’t existed in years.
