End of the Year Update

As 2025 comes to a close, the real estate market is finding a new balance after several years of volatility. Mortgage rates have steadied in the mid-6% range, keeping affordability a challenge but offering more predictability for buyers. Home prices grew modestly this year, with many markets showing slower appreciation or even small price corrections. Inventory levels have improved compared to recent years, giving buyers more options and reducing some of the intense competition that defined the past few cycles.

For sellers, this shift means pricing strategy and presentation are more important than ever. Homes are taking longer to sell, and buyers are being more selective. The good news: demand remains solid thanks to steady job growth and household formation, keeping the market active even as conditions normalize.

Looking ahead to 2026, many experts expect continued stability. If rates ease slightly and inventory continues to rise, we may see more balanced negotiations between buyers and sellers. Overall, the 2025 market has laid the foundation for a healthier, more sustainable housing environment in the year to come.