Market News March 7

Market Updates

Pending Sales Plummet in the Southeast, Vegas


January saw the cancellation of around 14% of homes under contract, especially in Florida and metro areas Atlanta, Las Vegas and Houston.

This added up to just over 41,000 U.S. cancelled home-purchase agreements. Stats show that January 2025 saw the highest cancellation rate for this time of year since 2017.

So what's causing pending sales to fall through? Agents report that buyers (and sometimes sellers) have gotten cold feet because of their concerns about:

  • More supply, less demand. As more buyers watch the housing market become less of a seller's market, some back out during a home's inspection period because a better home has become available.
  • Sticker shock. Mortgage rates and home prices remain stubbornly high.
  • The economy. Both buyers and sellers alike share worries about recent tariffs, layoffs and federal policy changes.
However, some agents remain optimistic, especially those who are seeing an increase of buyers in their territory because of more move-in-ready homes entering the market.1

Why More Agents Are Going for Google LSAs


If you haven't yet set up a profile in Google Local Services Ads (LSAs), it's time to consider it, especially if you have plenty of positive Google Reviews.

LSAs are a subset of Google Ads designed for prospects looking for a service-based business. When real estate agents advertise with LSAs, prospects that are buying or selling in your area will read all about you and even see your Google Reviews if applicable. In addition, instead of being pay-per-click ads, LSAs are pay-per-lead. So if someone clicks on your LSA but doesn't contact you, you don't pay for that click.

Here are some additional advantages:

  • LSAs appear above other Google search results. This is a major win, especially as your Google Reviews rating will show up as well.
  • On average, Google LSAs end up costing around $25–$45 per lead, and you're only billed for a lead when someone uses your ad to call or message you.
  • Creating an LSA account earns you genuine credibility, as your background check earns you a Google Screened check mark.
To learn more, or to get started, visit the Getting Started with Local Services Ads page.2

Instagram Grid Changes = Skinnier Posts


Recently, Instagram announced changes to the profile grid, the area where your posts are displayed as small squares. Now they're displayed with a "taller" look because Instagram has recently gone from a 1:1 square format to a 4:5 rectangular format.

Adapting your Instagram posts to the new format is simple. All you need to do is to begin creating posts in the 4:5 format. When you create posts that measure 1080 x 1350 pixels, they'll display correctly in your feed and profile grid.

Generally, you won't need to revise your older posts. They may have their vertical edges trimmed slightly in the new preview, but viewers will see the full, original image.

If you're not happy with how your 1:1 posts look within the new preview grid, you can fix them quickly.

  1. Tap the three dots (•••) on the post.
  2. Select Edit > Adjust Preview.
    3. Reposition the image to fit better in the grid.
  3. Save changes to update the preview.
Making these simple adjustments will keep your feed looking polished and optimized.3

New Construction Gains for Q4 2024


The National Association of Home Builders (NAHB) recently released data for the fourth quarter of 2024. While more single-family homes were built in smaller metro core counties with populations under 1 million, almost 25% of this new construction was within the larger metro suburbs.

The fourth quarter HBGI shows the following market shares in single-family home building:

  • 16.1% in large metro core counties
  • 24.7% in large metro suburban counties
  • 9.4% in large metro outlying counties
  • 29.1% in small metro core counties
  • 10.0% in small metro outlying areas
  • 6.3% in micro counties
  • 4.2% in non-metro/micro counties
The new home forecast for 2025 is mixed, with NAHB's chief economist voicing concerns about recently formalized tariffs and higher economic deficits. However, as fewer employees are allowed to work remotely, this could fuel building activity, together with talk of future tax cuts and Federal Reserve rate reductions.4

Three Hot Summer Events

If winter weather is getting you down, or if you prefer to plan ahead, one of these future events may be just the ticket.

Realtors® Legislative Meetings 2025: Don't let the name of this event discourage you from considering it. This year's event will be held in Washington, D.C. from May 31 to June 5. Featuring a trade expo, forums and meetings with Capitol Hill representatives, over 9,000 attendees provide serious networking opportunities. NAR membership isn't mandatory.

Tom Ferry's Success Summit: This event's popularity is reflected in its longevity, as it's been going strong for over 20 years. You'll have three days to network and learn new tactics and strategies. If you can't make it to Dallas, Texas in late August, there's a virtual attendance option.

REImagine! Conference and Expo: Hosted by the California Association of Realtors, this takes place in Chula Vista, California in mid-September. It's recommended for agents who want to learn the latest social media and marketing. Reservations will be available from May onwards.5

Sources: 1redfin.com, 2localiq.com, 3buffer.com, 4nahb.org, 5housingwire.com