Robert Reffkin, co-founder and CEO of Compass, is one voice that continues to stand out with tempered optimism as the U.S. housing market continues to change. Reffkin recently gave important insights into the present housing situation in an interview with CNBC's Squawk on the Street. He discussed the reasons for the April decline in pending home sales as well as potential future developments for both buyers and sellers.

A Cooling Spring, but Optimism Ahead

Given that spring usually brings a seasonal boost for real estate, some may have been surprised by April's decline in pending house sales, which the National Association of Realtors reports was down 7.7%. However, Reffkin blames this weakness more on consumer hesitancy and interest rate uncertainty than on a more fundamental structural problem. "Demand is still bottled up. Buyers are waiting for the perfect time, not that they aren't there," he stated.

That "moment," according to Reffkin, might come sooner than most people anticipate.

He underlined that purchasers have been keeping a careful eye on the market in anticipation of more clarity regarding inflation and mortgage rates. With confidence, Reffkin said, "I would expect more home buyers to come off the sidelines." His forecast is supported by statistics and firsthand accounts from Compass representatives across.

What local real estate investors have been seeing in their respective markets is reflected in this mood. For instance, Sell My House Fast South Bend, a reputable home-buying business in Indiana, observed that more homeowners are looking into quick-sale possibilities in an effort to get into a better position before a more widespread buying trend takes place. According to their team, "Sellers are watching closely, and once interest rates show consistent improvement, we expect a significant uptick in both listings and buyer engagement."

Inventory Challenges Remain

Reffkin is confident, but there is still a problem: low inventories. The number of available properties has decreased as a result of homeowners who are reluctant to sell due to ultra-low loan rates. Reffkin clarified, "It's difficult to justify trading up to something at 7% if you bought a house at a 3% mortgage rate."

The rate lock-in impact has caused inventories to freeze and irritated potential customers who are prepared to buy but are unable to locate acceptable solutions. Increased competition for move-in ready houses is forcing some buyers to reevaluate off-market and "as-is" properties, according to Compass agents in major metro areas.

Local investors and cash buyers are still very important in this situation. Asheville Cash Buyers has been assisting North Carolina sellers who wish to cash out fast without waiting for the ideal listing conditions. Their direct-buy strategy offers homeowners ease, speed, and flexibility—elements that are particularly alluring during uncertain times.

A company spokeswoman stated, "We're seeing more sellers choose the assurance of a cash offer over waiting for a traditional sale, especially when they're relocating or downsizing." "People are still taking action; it's just that things are happening in a different way now."

Signs of Buyer Resilience

Reffkin is nevertheless optimistic about the tenacity of buyers. The urge to become a homeowner hasn't diminished despite worries about affordability. In particular, Gen Z and Millennials still account for a sizable amount of demand. He pointed out that "millions of people still want to buy homes, especially first-time buyers who want to build equity instead of rent."

These younger consumers are becoming increasingly knowledgeable and astute. They're entering the market cautiously, but purposefully, with the help of market research, web tools, and professional advice. According to Reffkin, "there will be a release of demand that's been building for over a year" if rates level out or start to decline.

Businesses that deal directly with driven consumers and sellers are already getting ready for this change. Homeowners in Wisconsin who want to sell now and escape the uncertainty of future market conditions have been contacting Milwaukee Cash Home Buyers on a regular basis. Both troubled sellers and those seeking a quicker, more flexible transaction might benefit from their team's assistance in streamlining the process.

"Local buyers like us can help maintain momentum by offering practical solutions to people who can't wait for ideal conditions," a team member noted, even when the larger market slows. "The only thing that needs to be understood is how the housing market is constantly changing."

Mortgage Rates: The Wild Card

Reffkin's belief that mortgage rates are the market's biggest wild card was one of the main lessons to be learned from his presentation. Many customers are in a holding position as a result of the Federal Reserve's conflicting messages. He made a joke about how people monitor the Fed like they watch the weather, highlighting the psychological effect that monetary policy has on consumer behavior.

Nevertheless, Reffkin thinks things are changing. Expectations are rising that the Fed may lower rates later this year as inflation begins to decline. A slight reduction could increase demand by making it more affordable for a variety of consumers.

However, astute buyers and sellers aren't sitting around. Waco First Home Buyers is a perfect illustration of how Texas real estate activity persists despite uncertainties. Offering cash for homes in "as-is" condition relieves homeowners of the burden of timing the market and provides them with a simple departure route.

According to their representative, "interest is not slowing down." "In actuality, a lot of homeowners wish to sell right away before a potential rate cut intensifies competition in the market."

What It Means for Buyers and Sellers

Reffkin makes it very apparent that hesitating is not a sign of weakness. There is a demand, and it is becoming greater. The market may change course rapidly when mortgage rates start to move and inventory starts to loosen, even a little.

For purchasers, this entails budgeting, obtaining preapproval, and maintaining communication with responsive local agents. In order to avoid competition later, sellers, particularly those with flexible timetables, may want to think about listing now or selling directly to a local investor.

Compass has already set up its system to facilitate this change. Reffkin thinks Compass is prepared for a comeback thanks to its sophisticated agent tools, market data, and nationwide reach. He underlined, "We're building for a market recovery, not betting on it."

Final Thoughts

The housing market is simmering right now, not halted. "Buyers aren't gone, they're just cautious," as Robert Reffkin put it. It's only a matter of time until activity picks back up as inflation pressures subside and mortgage rates are set to perhaps drop.

And both buyers and sellers will need to be quick when it happens. The secret will be preparation, whether working with conventional brokers, internet resources, or reputable local investors like Sell My House Fast South Bend, Asheville Cash Buyers, Milwaukee Cash Home Buyers, or Waco First Home Buyers.

Those who are currently waiting on the sidelines might soon find themselves in a considerably more competitive market if Reffkin's optimism turns out to be accurate.