Uncharted Territory - See why that describes the 2025 Real Estate Market.

The 2025 Housing Market: A Shift Toward Balance?
As we head into 2025, the housing market is facing a major reset that’s been years in the making. For the first time since 2016, a significant number of homeowners—17.2%, or about 8.7 million borrowers—have mortgages with rates above 6%, according to the latest FHFA data. This shift signals a new chapter in real estate that could reshape how buyers, sellers, and investors operate.

How Did We Get Here?
For the last decade, low mortgage rates gave homeowners every reason to stay put. People locked in cheap financing—rates in the 4s or lower—and suddenly moving didn’t make as much sense. Why sell when you’ve got a deal of a lifetime on your mortgage? Inventory got tighter every year, and tenure of ownership stretched longer and longer.

By the time pandemic-era rates hit rock bottom, 83% of homeowners had incredibly low-rate loans, and inventory hit record lows. Competition was fierce, bidding wars were the norm, and prices rose relentlessly. Buyers were playing musical chairs with fewer and fewer chairs each year.

Now, that dynamic is reversing.

Expensive Mortgages Change the Game
Here’s the flip side: when mortgage rates rise, the math changes for homeowners. Those with higher-rate loans are more likely to sell—whether it’s to trade up to their next home, cash out on an investment property, or rebalance their portfolio.

By mid-2025, over 20% of homeowners are expected to have rates above 6%. What does that mean? More homes hitting the market. Inventory is set to climb back to 2018 levels and could even surpass 1 million homes if rates stay elevated into 2026. That’s a stark contrast to the inventory drought we’ve been dealing with for years.

What It Means for Buyers and Sellers
For buyers, this shift is a breath of fresh air. More homes on the market mean more options, less competition, and—finally—some relief from those cutthroat bidding wars. With prices flattening, there’s also less urgency to overextend.

For sellers, this is where strategy becomes key. The days of throwing a listing on the market and watching the offers pour in are fading. If you’re selling, you’ll need to price right, market smart, and make sure your home stands out. Buyers have more choices now, and that changes the game.

The Affordability Silver Lining
Here’s the twist: high mortgage rates might actually solve part of the affordability crisis. As prices stabilize and incomes grow faster than home values, affordability improves. It’s ironic, but those elevated rates we’ve been dreading might just pave the way for a healthier housing market.

From This Broker’s Perspective
Let’s cut to the chase: the 2025 housing market is a reset, not a collapse. Rising mortgage rates may seem like a headwind, but they’re creating opportunities we haven’t seen in years. Buyers, this is your chance to take a breath, weigh your options, and find the right home without the pressure cooker of the past decade.

Sellers, it’s time to roll up your sleeves. The market is still strong, but buyers are no longer throwing offers at everything that hits the MLS. Pricing correctly and presenting your home in the best light will be critical.

The real winners in this market will be those who adapt quickly. Whether you’re buying or selling, having a clear strategy and working with the right team is the difference between success and frustration.

The bottom line? This market rewards preparation. If you’re ready to make a move, let’s connect and put together a game plan. Opportunities are out there—you just need to know where to look.