The U.S. housing market in 2025 is shifting in subtle but important ways. After years of soaring prices and intense competition, many sellers are still operating under the assumption that the recent seller’s market will continue indefinitely. However, many sellers are not paying close attention to current conditions. They may base their expectations on last year’s headlines or the sale of a neighbor’s home months ago, rather than the most recent market data. Today’s buyers are highly informed and data-driven. They know exactly what comparable homes are selling for, and they can spot an overpriced listing immediately.

When a home is priced too high, it often lingers on the market, losing momentum and negotiating power. Buyers see this as an opportunity to negotiate a lower price, and sellers who wait too long may end up accepting less than they could have gotten if they’d priced correctly from the start.

The Changing Market Landscape

Inventory is Rising, Demand is Cooling: After a prolonged period of tight supply, housing inventory is finally creeping up, now nearly 17% higher than last year, the highest in five years. At the same time, demand is softening as mortgage rates hover near 7%, and buyers are becoming more selective.

Prices Are Flattening: Major forecasters like Redfin and Zillow predict a slight dip in home values. Redfin expects a 1% year-over-year decline by the end of 2025, while Zillow projects a 1.4% drop. This is only the second time in over a decade that prices have declined.

Price Cuts Are Back: With more homes sitting unsold and buyers pulling out of deals, sellers are increasingly forced to lower their prices. Zillow reports that about 25% of its listings saw price cuts in June, a rate not seen since 2018.

The Bottom Line

If you want a proven pricing strategy that works for today’s market, don’t go it alone. Connect with the Laughlin Tanner Group. We know the local market inside and out. We can help you avoid the common mistake of overestimating your home’s value and ensure you get the best possible outcome in this evolving landscape.