June 23, 2025
As a realtor watching the 2025 housing landscape, it’s hard not to feel the shift that’s rippling through nearly every market across the country.
At the start of the year, we were hopeful. Inflation was cooling, mortgage rates were sliding down, and housing inventory was finally ticking upward — the perfect cocktail for a rebound.
Buyers were supposed to step back in; sellers were supposed to have negotiating power. But then April hit, and President Trump’s surprise global trade tariffs rattled the economy.
Mortgage rates shot back up, nearly hitting 7%, and the fragile momentum snapped. Buyers lost confidence, and deals that should have happened simply didn’t.
What’s happening on the ground? Sellers are clinging to their prices, reluctant to drop them — and honestly, who can blame them? Nearly 60% of U.S. homeowners have mortgage rates under 4%, making it financially painful to sell and jump into today’s high-rate market.
Even in places like Austin, where prices have dropped 18% since 2022, homes are just sitting. Meanwhile, in hot zones like NYC suburbs, bidding wars that once attracted a dozen offers are now lucky to get two or three.
As a realtor, I’m seeing a “frozen” market — more listings, fewer buyers, and plenty of canceled contracts. Buyers are hesitant, worried about job security and rising costs.
Sellers, on the other hand, often prefer to hold or rent rather than slash their asking prices. This isn’t just a matter of high interest rates — it’s the result of years of underbuilding, pandemic-driven price surges, and a locked-in homeowner base unwilling to give up ultra-low mortgages.
If you’re a buyer, it feels like homeownership is drifting further out of reach. If you’re a seller, you might feel trapped, knowing a sale means stepping into a much more expensive loan. And if you’re an agent like me, you’re navigating both sides, helping clients stay patient and realistic in a market that feels anything but predictable.
Until we see meaningful shifts in new construction, financing options, or economic stability, I expect this stuck market to linger.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
