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As 2025 began, the stars were aligning for a housing market rebound.

Inflation was easing, the economy looked strong, and mortgage rates were drifting downward. By April, there were more available homes to buy than at any time since January 2020, according to the Federal Reserve of St. Louis. The conditions were ripe for buyers to reemerge, checkbooks in hands, and sellers to negotiate.

Then April 2, President Donald Trump rolled out his expansive global trade tariffs, shocking the stock and bond markets and sparking fears of a recession. Mortgage rates jumped again, hitting 6.89% for a 30-year fixed-rate loan May 29, their highest level since early February. The extreme volatility threw cold water on a fragile market. Buyers bailed out.

“There isn’t any urgency to buying right now — if anything it feels more risky to put a down payment into a home when you might not have a job six months from now,” said Daryl Fairweather, chief economist of Redfin.

Real estate agents across the country report a chilled environment, with sellers unwilling to lower their prices and buyers reluctant to make a big purchase as the economy flounders and the costs for a mortgage, insurance and property taxes rise. Even in markets where prices have fallen and inventory is piling up, like Austin, Texas, homes are sitting on the market for months. In fiercely competitive areas, like the New York City suburbs, where prices are still rising and homes sell fast, properties that would have gotten a dozen offers a year ago now get two or three.

“Yes, there is more inventory, but it’s almost like too little too late,” said Selma Hepp, chief economist for Cotality, a real estate data provider.

In 2024, there were fewer home sales than in any year since 1995. This year is looking worse. In April, the number of sales of existing homes dropped 2% from April 2024, while the median sale price rose 1.8%, marking 22 straight months of year-over-year price growth, according to the National Association of Realtors. The trade group also reported that pending sales are down from a year ago in every region of the country except the Midwest.

The number of canceled sales (one sign of a skittish market) also rose year over year, according to Redfin, which also found that there were nearly 500,000 more people trying to sell homes in April than there were people trying the buy them — the biggest such gap since Redfin began tracking the data in 2013.

La’Keshia White, a real estate agent in Douglasville, Georgia, said that some of her prospective buyers dropped out of the market after losing federal jobs. Others are nervous and scaling back their budgets to leave more cushion should their financial situation change.

“They used to be content, thinking their jobs are going to be there, but it’s not the same anymore,” White said.

In Lewisburg, West Virginia, Leah and Jesse Jones, who were in the market for a three-bedroom home, lost out on two bids: one to a cash buyer who waived contingencies and the other because the seller wouldn’t lower the price enough. After six months, they’ve paused their search, hoping a downturn might bring home prices down, too.

“I feel like buying a home, owning a home, is becoming a privilege that only the truly wealthy can enjoy,” said Leah Jones, 45, a clinical dietitian.

Yet despite a market full of reluctant buyers, sellers are not under pressure to drop their prices. Almost 60% of households have an interest rate below 4%, according to a study published in the Journal of Finance; selling would mean trading that low rate for a much higher one on a new purchase. Not since the 1980s, when borrowing rates soared into the double digits, have so many Americans been locked into their mortgages, said Lu Liu, an assistant professor of finance at the Wharton School at the University of Pennsylvania and an author of the study, describing the conditions as “unprecedented.”

Added to that, the country hasn’t built enough homes since the foreclosure crisis, creating a chronic lack of new housing supply that drags down the market and keeps prices high. “There is no panacea in sight,” Liu said.

Even Austin is stuck, despite starting construction on 102,000 single-family homes between 2020 and 2024, according to Zonda, a data provider. The median sale price there has fallen by 18% since the peak in April 2022, according to Unlock MLS, the multiple listing service for the Austin Board of Realtors.

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But buyers still see an overheated market — the median home price jumped 69% from April 2020 to April 2022 — and an uncertain future. Many sellers, in turn, would rather pull a listing from the market than meaningfully lower the price. “It’s a bit of a frozen market,” said Eric Bramlett, an Austin real estate agent.

In February, John Huffman and Nan Walsh listed their three-bedroom house in East Austin for $950,000, after buying a home in Columbus, Ohio, closer to family. The house hasn’t sold, and though they’ve lowered the price to $925,000, they’re in no hurry to make a deal. “I don’t feel any pressure,” said Huffman, 68.

The couple paid $618,000 for the house in 2017 and have a mortgage with a 2.6% interest rate. If it doesn’t sell, they may rent it out or use it as a winter getaway.

This article originally appeared in The New York Times.

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As water conservation becomes increasingly urgent across Colorado, landscaping trends are evolving to prioritize sustainability and low-maintenance designs.

Homeowners are embracing xeriscaping and native plant landscaping and moving away from traditional bluegrass lawns in favor of drought-resistant options.

Lauren Floyd, design assistant at C&H Landscaping, said homeowners who switch to low-water landscaping are more likely to want to save money than those motivated by environmental concerns.

“We’re seeing more people moving to xeric landscapes using native plants to increase curb appeal and cut down on their water usage.”

Popular options include xeriscaping using native plants, planting ground cover, incorporating hardscaping, using mulch and gravel, and installing drip irrigation.

Xeriscaping uses drought-resistant plants, particularly those native to Colorado, like Karl Foerster grasses and Colorado blue spruce, because they are better adapted to thrive under specific conditions.

This landscaping approach often features succulents, lavender, yucca, and other low-water plants, which help conserve water while maintaining beauty in the garden.

Ross Hulstein, Highlands Landscaping CEO, said most homeowners understand that growing grass takes more water.

“Switching to low water use means less grass and more native plants,” Hulstein said.

He recommends choosing native Colorado plants that thrive in the high desert climate.

“They are used to the rainfall we get and will need less watering.”

In Fort Collins, homeowners’ associations that once required at least 60% blue grass are now modifying their requirements to options that use less water, said Kristin Crawford, the office manager of Waterwise Landscapes.

She said xeriscapes that include Karl Foerster, Maiden Hair, and Pampas grasses are popular and require less water and maintenance.

Aaron Le, owner of Modern Concepts Landscaping, said xeriscapes also appeal to homeowners who want something low-maintenance.

“They want something simple and clean so they have a nice looking yard without having to put too much time and effort into it,” he said.

Planting ground cover instead of using rocks offers environmental and aesthetic benefits.

Plants like creeping phlox and hen-and-chick succulents improve soil health by preventing erosion, enhancing moisture retention, and promoting nutrient cycling.

Ground covers also support beneficial insects and wildlife, fostering biodiversity. They provide vibrant, textured landscapes with seasonal color and help moderate soil temperature while retaining moisture.

Dan Zehr, owner of Living Landscapes, said using plants as ground cover helps create a healthy ecosystem. The plants provide moisture and support birds and pollinators.

“We’re experiencing a renaissance and people are discovering what it truly means to create an ecosystem,” he said.

Landscaping experts must help educate homeowners, especially transplants, to help them understand the environment.

“We need to show them that native short grasses will thrive and that hydrangeas and boxwoods are not appropriate for our climate.”

Incorporating hardscape elements like patios, boulders, and mulch can effectively reduce grassy areas in landscaping.

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Additionally, using rock and gravel instead of traditional grass minimizes maintenance and significantly reduces water usage.

Hulstein warns that installing hardscaping costs more upfront, but takes less work and costs less to maintain.

Installing drip lines allows for targeted watering, making it a more efficient alternative to traditional irrigation methods.

This approach ensures water is delivered directly to the plants’ roots, minimizing waste and optimizing water use.

The news and editorial staffs of The Denver Post had no role in this post’s preparation.