Real Estate Trends to Watch in 2025

haakerteamco
Jul 2
2 min read

1. Inventory Still Rising, Giving Buyers More Choices

Nationally, active home listings are up about 31.5% year-over-year as of May 2025—the 19th consecutive month of growth—bringing inventory back to near pre-pandemic levels.
However, nearly one-fifth of listings have already seen price reductions, signaling sellers adjusting to changing conditions.

Impact: Buyers enjoy more options and negotiating power. Sellers should price competitively and be ready to negotiate.

2. Softening Prices, Regional Divergence

Overall home prices remain flat or are dipping slightly in many regions.
Zillow predicts a modest 1.7% national decline in prices between March 2025 and March 2026.
At the same time, certain hot metros like Dallas–Fort Worth and parts of Florida are showing resilience.

Impact: Local market conditions matter. Buyers may find deals in cooling areas, while sellers in resilient markets may hold firm on pricing.

3. Higher Mortgage Rates Keep Buyers Cautious

With mortgage rates hovering between 6–7%, affordability remains a key concern.
In some regions, especially urban luxury markets like Manhattan, cash buyers are dominating, sidelining traditional financing.

Impact: Buyers need pre-approval, strong credit, and flexible options (like ARMs or seller concessions). Sellers in high-end areas may encounter a narrower buyer pool.

4. Generational Shifts in Buyer Demographics

Baby Boomers (60–78) now represent 42% of buyers and 53% of sellers—many are moving with cash transactions.
Meanwhile, Gen Z (18–25) accounts for just 3% of buyers, often entering the market with support from parents (“nepo-buyers”).

Impact: Sellers may consider staging homes for older buyers, while younger buyers may rely heavily on family assistance. Tailored messaging matters.

5. Emerging Legal and Tech Backdrops

Lawsuits against Zillow and NAR could change how listings are shared, potentially reducing “pocket listings”.
Meanwhile, real estate marketplaces are consolidating services to include listings, mortgages, and closing—all in one platform.

Impact: Buyers may experience more transparency and streamlined experiences. Sellers should follow platform changes closely to maximize exposure.

6. What Buyers & Sellers Should Do Now

Buyer Strategy	Seller Strategy
Get pre-approved early—strong financing helps in tough markets.	Price realistically, accounting for increased inventory and negotiation room.
Shop regional deals—some markets still lag while others thrive.	Stage and market wisely—especially for Boomer buyers or luxury homes.
Consider support options—ARMs, seller help, or parental assistance.	Gauge local laws and tech shifts—adapt your listing plans accordingly.