2025 Real Estate Charts & Market Trends You Need to See

The real estate market is constantly changing, and over the last year, things have cooled down a bit. With that said, home values still rose by an average of 3.7%, and existing home sales and sales prices were up 0.8% and 0.2% year-over-year. To add to that, mortgage rates have remained higher than in the pandemic timeframe, making it more difficult for buyers to afford housing.

So how does all of that affect you as a real estate agent? Understanding these market shifts can allow you to educate, inform, and guide buyers and sellers through these challenges. You’ll also be able to set the right expectations up front, no matter what their circumstances are. At the end of the day, this can help position you as the go-to expert for your clients.

1. Home sales are normalizing

According to data from the National Association of Realtors, home sales have stabilized over the past year with a small uptick in sales. However, inventory has grown slightly, with signs that it’s still more of a seller’s market, although somewhat less so than last year. Keep in mind that a balanced housing supply is generally seen at 6 months inventory, with lower inventory suggesting a seller’s market, and higher inventory pointing towards a buyer’s market.

Overall, homes are sitting on the market longer than the whirlwind of 2020 through 2022, but it’s not a sign that the housing market is collapsing. That’s proven by the fact that demand is still strong, with home prices ticking upwards ever so slightly.

2. Pending home sales are slowing down

As we saw above with the housing market inventory, it’s still a bit of a seller’s market. So it shouldn’t be surprising to see that pending home sales have slowed down for the most part. Based on the most recent data available from the NAR as of the time of writing this article, we can see that pending sales for June are slightly lower than last year. Each region also has corresponding lower levels of sales activity.

While some buyers might see this as a bad thing, you can actually frame it in a manner that benefits your clients. For instance, slower sales activity can allow buyers more time to weigh options before committing to anything. For something as large as a home purchase, it can potentially save your clients from making a costly mistake or overlooking critical details that might otherwise be missed if they felt rushed for time. Buyers today can use this to their advantage in taking more time to compare properties and strategize.

3. Home prices are expected to go up

Buyers waiting to buy a home, hoping that prices will fall, may be waiting a long time. That’s because forecasts from multiple reputable sources expect homes to continue going up in value by about 1% to 2% each year for the next two years. While it’s nowhere near the double-digit increases in home values we saw during the pandemic — and while forecasts aren’t a guarantee — it is still a strong indicator that homes aren’t likely to get cheaper any time soon. 

As a real estate agent, you can use this information to try and encourage your clients to act now if they can afford it, rather than gambling and continuing to stay on the sidelines. Depending on your buyer’s circumstances, trying to wait things out could result in buyers paying more in the long run in the form of things like additional rent and a higher purchase price on their future home. It could also lead to them being on the hook for a larger down payment requirement, higher property taxes, and other housing expenses. 

4. Buyers are more easily able to find seller listings

Data from Realtor.com shows that it’s still a seller’s market, although it is relaxing just a bit. And that’s a good thing for buyers. More homes listed for sale means buyers have a greater chance of finding their dream home, not to mention more flexibility in their decision-making and amount of leverage when it comes to putting in an offer on a property. 

As a real estate agent, more listings might lead you to think there’s less competition to secure a seller. However, it’s important not to get complacent, as building relationships isn’t something that happens overnight. Now’s the best time to refine your marketing strategies, work on your listing presentation, and think of ways you can showcase the value you’d be bringing to sellers. 

5. Listing prices aren’t declining

Year-over-year, listing prices have only gone up 0.5%. That’s a great sign that the housing market is far from collapsing, but rather, in a relatively stable period for now. With that said, keep in mind that different geographic markets can see varying levels of growth and decline, but on the whole, we’re in a market that has cooled drastically, yet is still growing. 

It’s easy to get lost in news headlines panicking over how much the housing market has slowed. But many of those reference the insanely high (and highly abnormal) growth that we saw in the pandemic. In the grand scheme of things, prices are holding, the market is healthy, and it’s still growing slowly but surely. 

6. Real estate is still considered the best long-term investment by most Americans

When it comes to finding the best long-term investments, it can be difficult to differentiate sustainable ones from those that are just new and flashy. However, time and time again, real estate has been considered by most Americans to be the best type of investment, proving that it’s not just some meme-style idea that’ll disappear the next day, according to Gallup. In fact, lists like our best states to invest in real estate showcase strong markets for long-term growth. Here, it’s clear that Americans believe homeownership is the key to building long-lasting wealth despite its historical ups and downs. 

As a real estate agent, you can use this information when talking with clients. Remind them that they’re not just buying a home, but they’re also investing in their financial future and well-being in an asset that has been proven to rise in value in the long run. 

7. Americans believe it’s a better time to buy real estate now

Historically, consumer sentiment about whether buying a home is a good or bad idea has shifted quite dramatically. In fact, last year, it was at an all-time low, with the vast majority of Americans believing that it was a bad time to buy. While these trends aren’t likely to change much in just one year, it’s perhaps somewhat encouraging to see that the most recent 2025 survey done by Gallup has seen a slight rise in consumer confidence when it comes to buying a home. Our guide on the best & worst times to buy a house can help put that into perspective and give relevant insight when it comes to market timing. 

For real estate agents, this should make it slightly easier to get the message across to buyers that now is the time to take the leap and start building equity. While opportunities are more scarce today than in the past, they’re still around if they’re open to finding them — and it could help them get a few years’ head start on achieving their financial and personal lifestyle goals. 

8. Many of the hottest housing markets are on the East Coast

For yet another year, data shows that the hottest real estate housing markets are largely concentrated on the East Coast, according to Zillow. This is likely tied to the fact that these cities are located in areas with strong job growth and stable market conditions. However, one change is that a few centrally located U.S. cities have also made this year’s list for the hottest real estate markets, largely thanks to better affordability, good employment, and increased demand from buyers looking for alternatives away from high-cost-of-living markets. 

As a real estate agent, this should tell you that there can always be opportunities coming up, even if you’re not in a market that’s currently considered “hot”. By always being prepared and positioning yourself as the go-to agent for real estate, you’ll be able to cash in quickly when things start to heat up. This could even be a great time to find a real estate niche and expand your area of expertise, and subsequently, your clientele. 

9. Home sales are forecasted to steadily climb

In previous years, home sales forecasts have been projected to grow between 4% and 6%. This year, that number has shrunk to just 0.6% according to Zillow. While that might seem bad, I wouldn’t take it as a sign that the housing market is collapsing. Growth is still growth, even if it’s small. Instead, I take this slow projected growth to be a sign of stability and long-term sustainability. While it’s easy to miss the good ‘ol days several years ago, those were highly abnormal and certainly not the benchmark for a sustainable trend in home sales. 

The bottom line is that even in down markets, real estate is still very much a necessity for everyone. Life changes due to things like job shifts, relocations, divorce, and the need to downsize or upsize. As a real estate agent, being prepared for any market can help you capture leads and clients regardless of the current economic state of the industry. 

10. Construction finally recovered from the housing bust

One of the factors affecting the current market conditions is the lack of inventory. Since the crash in 2008, new home construction has struggled to regain its foothold. That is until a couple of years ago, when it finally surpassed the pre-crash levels. And in that timeframe, new construction jobs increased by 250,000. So, over the next year or two, I expect the new construction real estate trend to provide a leveling off of home prices and constraints on inventory. 

I know that new construction can be a big player, as I’ve read many stories of agents selling properties and still having to compete head-to-head with several new developments in the area. Homebuilders have the ability to offer deep discounts and lower mortgage rates, making them extremely competitive to get those new homes filled. I expect that to be the trend over the next few years, keeping resale prices down.

11. Mortgage rates are predicted to fall

While home prices may not be falling, buyers will be happy to hear that mortgage rates are projected to fall through the end of this year and next. Fannie Mae did recently revise its 2025 projection that this year’s rates will now end around 6.5% — up 0.1% from its initial forecast. However, it does expect rates to fall to 6.1% by the end of 2026. This drop in rates can make housing more affordable for buyers as monthly mortgage payments would be lower, all other things being equal. 

If you’re working with clients who might be on the fence about purchasing a home, staying on top of interest rate news can let you know when it might be a good time to tap them on the shoulder, so to speak. That’s because a drop in rates leads to a more affordable mortgage payment, which could give buyers the confidence and the push they need to feel comfortable about moving forward with a home purchase. 

12. Later generations are seeing higher average mortgage rates

You might be surprised that Gen X and millennials locked in the best rates over the past few years at 4%. That’s great news for millennials who are coming into an age where upsizing from their starter homes might be a factor. Millennials, as they come into their prime earning years, are actually making more money than any of the previous generations did at the same age, according to recent generational real estate statistics. 

When you talk to your millennial clients, show them some hard numbers demonstrating their market power. Work with a lender to host classes on refinancing, investing, and even purchasing a second home. Millennials may not realize how much purchasing power they have, and you could be the key to unlocking their real estate potential.

13. Equity gains remain consistent in the long run

It makes sense why most Americans believe that real estate is still the best long-term investment. Over time, homeowners have continued to build equity year after year. With just a few exceptions, even the smallest gainers in average home equity since 2020 have paid off tremendously for those who bought and held real estate. And the largest gainers clocked over 200% in gains, a tremendous boost in personal wealth simply from owning a home. In fact, when you look at the best and worst states for equity growth, the numbers show just how lucrative real estate ownership can be as a long-term investment. 

As a real estate agent, you can use this data to inspire your clients. Make them excited about what the future could hold, and let them see how buying property could be the very first step in allowing them to realize their financial dreams. 

14. Remodels are slowing down

Home remodeling is typically tied to property sales, so it’s no surprise that with a cooling housing market, remodeling projects are also forecasted to slow down a bit. In essence, there’s a reduced need to conduct repairs or improvements if selling the property isn’t on the table, and higher rates make it more costly to borrow money to fund these projects. 

Now, home remodels never really go away completely, even in a slow market. That’s because homeowners will always need some funds to deal with routine repairs and maintenance. Regardless, as you can see, remodeling rates are coming back down in line with a downward trend of sales (relative to the housing frenzy during the pandemic). 

15. Inflation is at the top of financial worries

Just as the real estate market is constantly shifting, so too are the worries of the typical American. A year ago, inflation and high cost of living were the largest concerns; today, while it remains at the top of the list, a significantly smaller number of Americans are concerned about it, according to a survey by Gallup. Instead, even more are concerned about the lack of money and wage levels — 12% compared to last year’s 7% figure. 

As a real estate agent, knowing what fuels the financial worries of your clients can help you find solutions for them. That could come in the form of helping them find more affordable locales, areas with greater employment opportunities, or helping them find programs that can offer financial assistance. Ultimately, it’s an opportunity to once again show your clients how much value you can provide to the homebuying process. 

16. Equity growth is projected to continue to rise

Home equity is the portion of a home the owner truly owns. It’s calculated as the difference between the home’s market value and the remaining mortgage balance. For example, if a home is worth $500,000 and there is a mortgage balance of $100,000, then the owner has $400,000 of home equity. As you can see, home equity could increase with a combination of paying down the mortgage loan as well as having the property appreciate in value. And in today’s market, steady appreciation has allowed homeowners to build more equity simply through market growth — without the need for any actual home improvements. 

Helping clients see this potential is an easy way to demonstrate the value of owning or investing in real estate. Use market data from your specific neighborhood to showcase how much property values have gone up solely as a result of appreciation. Regardless of whether you’re meeting with buyers or presenting a listing, showing how equity can compound over time can allow them to better visualize the benefits of purchasing sooner rather than later. 

17. Vacancy rates suggest demand exists for renters and homeowners

Vacancy rates keep tabs on the number of rental units sitting empty, as well as homes that are vacant but ready to be sold. They’re both important indicators of the health of the housing market – low vacancy rates typically mean there’s not enough supply of homes, whereas high vacancy rates are a sign that buyers and sellers have more options. Over the past several years, data from the U.S. Census has shown an increase in vacancies, which would suggest there are more empty units and properties just sitting unsold than ever before. 

For real estate agents, being aware of this information can give you a competitive advantage. For example, in an environment with rising vacancy rates, you’ll know that your clients won’t have to feel rushed as they’ll have more choices and more negotiating power when it comes to making an offer on a home. In doing so, they’ll be able to avoid paying more than necessary, something that will further position yourself as a trusted advisor in their home purchasing process.  

18. Many starter homes are becoming less affordable

According to Zillow, half of U.S. states now have at least one city where the average starter home is $1 million or more. And that’s a trend that seems to be going up. In fact, just five years ago, there were only 85 cities where a starter home was $1 million or more. Today, that number has grown to 233 — one of several real estate trends shaping affordability across the nation. 

For real estate agents, this is a critical data point to keep in mind. With more and more homes becoming less affordable, it’s important to be creative and resourceful when it comes to knowing which neighborhoods to look at so that you can find homes that are within your client’s budget. You may even need to become knowledgeable about financial assistance programs that could help bridge the affordability gap. 

Regardless, given that the trend of increasing start home prices doesn’t seem to be going away any time soon, buyers who take action sooner rather than later can lock in a property before prices continue to climb. 

Your take

Real estate is a fascinating industry, complete with shifts that can happen overnight and peaks and valleys that can shake up even the most seasoned veteran agents. So when buyers and sellers can come together to complete a transaction without someone curling up in a fetal position, it’s a win. Arm yourself with the information in these real estate market charts, dispel common home-selling myths, and facilitate more wins for your clients and yourself.