Andrew Rice of Curbed reports that Zohran Mamdani’s shock victory in New York City’s Democratic mayoral primary triggered a panic among the city’s elite, who had collectively backed Andrew Cuomo with over $30 million, only to watch him lose in a landslide. The 33-year-old democratic socialist’s win left power brokers scrambling for a Plan B, with CEOs, landlords, and consultants convening emergency meetings. Though Mamdani’s policies, such as a rent freeze and free buses, weren’t radical departures from past proposals, his open defiance of the city’s establishment struck fear.

Steve Gelsi of MarketWatch reports that Mamdani’s unexpected primary win has sent shockwaves through New York City real estate stocks. Vornado Realty Trust fell 6.7%, SL Green fell 5.7%, and Flagstar Financial dropped 3.9% amid fears of rent freezes, increased regulation, and higher taxes on corporations and the wealthy. Analysts dubbed this market reaction the “Zohran effect,” warning of reduced corporate spending and potential outmigration.

Tracey Velt of HousingWire reports that the primary win has rattled New York City’s luxury real estate market, with some wealthy buyers pausing transactions amid fears over his rent control proposals, anti-development stance, and rhetoric against rezoning. Compass CEO Robert Reffkin described the reaction as more severe than any market event in his 13-year NYC career. Although the initial panic triggered buyer hesitations and legal consultations, industry leaders note that deals are still closing, and warn that political campaign rhetoric often differs from actual policy execution.

James Cirrone of the Daily Mail reports that Florida’s housing market will surge as wealthy New Yorkers scramble to flee the city following Zohran Mamdani’s unexpected Democratic primary win over Andrew Cuomo on a platform of taxing the ultra-rich. Celebrity broker Ryan Serhant said his top priority post-election is relocating clients to Florida, noting that buyers are already pulling out of NYC deals. Billionaires like Bill Ackman and John Catsimatidis had warned of a millionaire exodus, with Catsimatidis even threatening to close his grocery stores. Florida Governor Ron DeSantis welcomed the potential boost, as realtors across the state reported a surge of calls from high-net-worth individuals seeking to relocate to the state.

Trump administration

Several policy changes made headlines last week, starting with Flávia Furlan Nunes of HousingWire reporting that the FHA has rescinded 12 policies affecting appraisal protocols, underwriter employment, and flood risk management as part of the Trump administration’s broader push to reduce regulatory burdens. HUD Secretary Scott Turner called the move “bold, necessary and long overdue.”

Sarah Wolak, also of HousingWire, reports that HUD has appointed Jonathan “Drew” McCall, Todd Thurman, and Reid Wilson to senior leadership roles following Andrew Hughes’s swearing-in as deputy secretary under Secretary Scott Turner.

Mary Helen Gillespie of The Street reports that FHFA Director William J. Pulte sharply criticized Fed Chair Jerome Powell, blaming his “hallucinations” about tariff-driven inflation for keeping mortgage rates at 6.77%, the highest in decades. With home prices topping $407,000 and average mortgage payments doubling to $2,207 since 2020, Pulte says Powell’s policy paralyzes the housing market, stalling new construction and shutting out first-time buyers.

Bonnie Sinnock of the National Mortgage News reports that FHA’s Pulte has also initiated rare discussions between Fannie Mae and Freddie Mac to gather their input on potential deregulation efforts, signaling a coordinated push to ease oversight on the government-sponsored mortgage giants.

Logan Mohtashami of HousingWire reports that President Trump has launched “Operation Shadow Fed President,” a strategy to preemptively install a successor to Fed Chair Jerome Powell by publicly floating names like Kevin Warsh and Chris Waller, to signal a more dovish monetary stance. This move aims to influence bond markets ahead of Powell’s expected 2026 departure, potentially lowering the 10-year yield and easing mortgage rates. Trump’s frustration with Powell, weakening labor data, and proposed regulatory rollbacks suggest a coordinated push to shift Fed policy even before a formal leadership change.

Finally, Maria Volkova of National Mortgage News reports that HUD is planning major changes to its manufactured housing program. The agency views it as a critical tool to address the national housing shortage rapidly. The proposed overhaul aims to streamline development and boost affordability through expanded use of factory-built homes.

New listings and home prices

Dana Anderson of Redfin reports that the housing market is cooling as sellers pull back and pending sales drop 2.3% yearly, the most significant decline in three months. Despite a modest 2.5% annual increase in new listings, activity is waning in major metropolitan areas, such as Tampa (-15.2%), San Antonio (-14.4%), and Orlando (-11.1%). With home prices hitting a record high, up 1.6% year over year, and mortgage rates hovering near 7%, many buyers are hesitant, while would-be sellers either stay put or shift to renting amid rising economic uncertainty.

Source: Redfin (July 2025)

That said, Jake Krimmel of Realtor.com reports that pending home sales rose 1.8% in May from the previous month and 1.1% year-over-year, as buyers began reentering a market marked by falling list prices and increased price cuts, now at a record 19.1% of listings for May. Despite still-high mortgage rates and lingering lock-in effects, all four U.S. regions saw monthly gains, with the Midwest and South also posting annual increases. Inventory has topped 1 million homes for the first time since 2019, giving buyers more leverage as the market slowly shifts in their favor.

Source: Realtor.com (July 2025)

Kara Ng of Zillow reports that existing home sales rose 0.8% in May to a 4.03 million SAAR, defying expectations amid April’s economic uncertainty. While sales remain 0.7% below last year, inventory jumped 20.3% year-over-year to 1.54 million units, giving buyers more leverage. The median sales price climbed to \$422,800, up 1.3% annually, with Zillow projecting a slight increase in sales and total dollar volume through 2025 as the market gains traction.

Mark Worley of Redfin reports that U.S. home prices dipped 0.1% in May, the fourth monthly decline in a decade, reflecting a cooling market where sellers far outnumber buyers. Annual price growth slowed to 3.6%, the lowest since July 2023, with 32 of the 50 largest metros seeing monthly price drops, led by Charlotte (-2.7%). According to Redfin’s Home Price Index, fewer homes are selling above asking price, pending sales are down, and inventory continues to rise, signaling a clear shift toward a more balanced, or even buyer-friendly, market.

Fannie Mae’s Economic and Strategic Research Group has revised its 2025 existing home sales forecast down to 4.14 million units, from 4.24 million last month. This is due to higher projected mortgage rates, which are now expected to end 2025 at 6.5% and 2026 at 6.1%. The June outlook also estimates real GDP growth at 1.4% in 2025 and 2.2% in 2026, signaling tempered expectations for both housing and the broader economy.