September - Eye on the Market

In September 2025, both buyers and sellers should be aware of a real estate market that is still in a period of "stuck" or slow activity, marked by a balance of persistent challenges and some potential shifts. The market is not expected to see a major crash, but rather a continued moderation in trends.

For Buyers to Keep an Eye On:

• Mortgage Rates: The Federal Reserve is signaling a potential rate cut in September. However, experts caution that a Fed rate cut doesn't always translate to an immediate or significant drop in mortgage rates, as they are more closely tied to the bond market.¹ While some projections anticipate rates may hover in the mid-6% range for the rest of the year, others are more optimistic, suggesting they could dip closer to 6% by the end of 2025. It's crucial for buyers to not try to "time the market" and instead focus on what they can afford.

• Inventory: The housing supply is gradually increasing, with new listings rising year-over-year. This means more options for buyers and a slight cooling of the intense competition seen in previous years.

• Home Prices: Home price appreciation is slowing down significantly. While national averages may still show a slight increase, many local markets are seeing flat or even declining prices, particularly in the South and West where inventory has grown the fastest. Buyers may have more room for negotiation on price and terms.

• Affordability: This remains a major challenge. Even with increasing inventory and slowing price growth, high interest rates and stagnant wage growth are keeping many potential buyers on the sidelines.²

For Sellers to Keep an Eye On:

• Pricing Strategy: The days of multiple offers and bidding wars are largely gone. With the market moving toward a more balanced state, sellers must be realistic with their pricing. Overpricing a home will likely cause it to sit on the market, potentially leading to a larger price reduction later on.³

• Buyer Demand: Buyer demand is still low due to affordability issues. The "lock-in effect" is also a factor, as many potential sellers are hesitant to give up their current low-rate mortgages to buy a new home at a much higher rate.

• Inventory Competition: While overall inventory is still low, it is growing. This means that a seller's home will have more competition. It may take longer to sell a property than it did in the past.

• Market Adjustments: Be prepared for the possibility of price reductions. Many sellers are having to adjust their expectations and lower prices to attract offers.⁴ This is particularly true in markets where inventory is growing fastest.

Overall Market Trends:

The current state of the market is still "stuck" or moving at a slow pace, with both buyers and sellers waiting for more certainty. With the market shifting from a seller's market to a more balanced one, though conditions will vary greatly by location, the most significant factor influencing the market is the ongoing uncertainty around interest rates⁵ and the broader economy.