Real Estate Rundown September 2025
September 01, 2025
Photo Courtesy of Tony Basso via Unsplash
Home Buyers See More Opportunity
Home buyers are gaining an edge they haven’t seen in years, according to the National Association of REALTORS®’ latest housing report. With inventory up 16% from last year—the highest since May 2020—existing-home sales rose 2% in July as more buyers take advantage of the growing number of listings. Prices are showing signs of cooling, with the median existing-home price up just 0.2% year-over-year, giving buyers more negotiating power. Builders are also stepping in with incentives like mortgage rate buydowns and price cuts, helping affordability inch higher. While sellers continue to benefit from strong long-term price appreciation and low foreclosure rates, competition is shifting: more choices, slower price growth, and builder concessions are giving buyers opportunities they haven’t had in over five years. Still, demand remains solid, with 21% of homes selling above asking price and nearly a third of sales going to cash buyers—proof that competition, while evolving, is far from gone.
Affordable Home Listings On The Rise
Housing markets are gradually shifting in buyers’ favor as inventory climbs, but affordability challenges continue to weigh heavily. In July 2025, about 439,000 homes were affordable to a median-income household—the highest level since 2022 and 20% more than last year—thanks to an 18% increase in listings that has slowed price growth. Still, less than a third of homes on the market are within reach of the typical buyer, a sharp drop from 2020 when more than half were considered affordable. Affordability varies widely by region: Midwest markets like Buffalo, St. Louis, and Pittsburgh see over half of listings within reach, while coastal hubs like Los Angeles and San Diego offer almost none. Sellers are adjusting with more price cuts and competitive pricing, but Zillow projects only modest relief ahead, noting that meaningful affordability gains will require lower mortgage rates or a significant increase in new housing supply to close the nation’s 4.7 million home deficit.
Lower Mortgage Rates Mean More Pending Sales
Falling mortgage rates are giving homebuyers a small but welcome break, with the average rate dropping to 6.58%—a 10-month low—and the typical monthly payment easing to $2,616, its lowest point this year. The decline has sparked a modest pickup in activity: pending home sales rose 1.6% year over year, and Redfin’s Homebuyer Demand Index is trending higher as more buyers schedule tours. Still, many house hunters remain cautious, holding out for further rate cuts before making offers. On the selling side, new listings inched up 1.9% from last year—the biggest increase in two months—as some homeowners take advantage of improving conditions. While buyer confidence is improving, Redfin agents caution that waiting too long could mean stiffer competition if rates fall further and demand surges.