If you thought the real estate boom was over, think again. While headlines often focus on rising mortgage rates or economic uncertainty, the undercurrent of the housing market tells a different story: one of resilience, pent-up demand, and active buyers and sellers. In many markets today, the momentum hasn’t died — it’s simply shifting. The savvy are positioning themselves now, and it’s paying off.
In this post, I’ll show you the data, explain why the market remains alive, flag the risks, and offer practical advice to anyone thinking of buying or selling in today’s climate.
Current Market Snapshot
1. Sales and price trends
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In mid-2025, existing home sales in the U.S. rose to about 4.01 million (seasonally adjusted annual rate) — a 2% monthly gain. Trading Economics
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Year over year, median home prices are still climbing, though more modestly: many metros report 1–2% increasescompared to last year. Redfin+2housecanary.com+2
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New home sales have seen sharper uplifts: for instance, August 2025 saw a jump of ~10.9% in new single-family home sales from the prior month, with median prices rising ~4.7% monthly. Trading Economics
2. Inventory, listings, and supply
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Active listings have been climbing: some reports show a ~20-25% year-over-year increase in homes on the market. The Close+3Realtor+3housecanary.com+3
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However, even with that bump, supply remains constrained in many areas. A “balanced” market is often pegged at ~6 months of supply — many markets are still well below that. Ramsey Solutions+3The Close+3housecanary.com+3
3. Mortgage rates, affordability, and buyer sentiment
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Mortgage rates remain elevated (6–7% for many 30-year fixed loans), creating affordability pressure. Bankrate+2Forbes+2
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Some buyers are pulling back, especially first-time buyers or those in lower income brackets, due to tighter budgets.
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But there’s also a “wealth effect” — homeowners with strong equity gains, or those flush with stock/investment gains, are more confident in making moves. Ramsey Solutions+3JPMorgan Chase+3PwC+3
In short: we’re seeing steady movement — not the boom levels of the last few years, but not a freeze either.
Why the Market Is Still Thriving
Given the headwinds, how is the market holding up? Here are key drivers:
1. Strong equity and wealth gains fueling movement
Many homeowners have substantial equity built up in their properties. That equity gives them flexibility — to sell, to trade up, or to help in down payments. Meanwhile, stock market gains (for those invested) are giving some buyers more cash reserves to compete. Ramsey Solutions+3JPMorgan Chase+3PwC+3
2. Life events, migration, and demographic tailwinds
People still move for jobs, family, downsizing, upsizing, or retirement. Migration from high-cost areas to more affordable regions continues, and remote/hybrid work is allowing more flexibility in where people live. These motivations don’t vanish, even in tighter markets.
3. Low supply / constrained new building
New construction is rising in some places, but not universally. Builders face cost pressures (materials, labor, regulatory constraints), so supply can’t rapidly flood the market. That keeps upward pressure on existing home values. Ramsey Solutions+3Forbes+3Census.gov+3
4. Segment-specific strength
Certain segments remain very active:
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Luxury homes and second homes are seeing strong activity in many metros.
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Markets in growth corridors, suburban/exurban areas, or within regions with strong job growth or population influx tend to outperform.
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In places with limited inventory, bidding wars still occur for the best homes, especially in desirable neighborhoods.
5. Gradual easing of rate pressures (possible tailwinds)
If mortgage rates begin to moderate (or expectations shift), that can unlock more buyer activity. Analysts are watching FED signaling and inflation trends closely. PwC+2JPMorgan Chase+2
Challenges and Risks to Watch
Of course, the market isn’t without friction. Here are key risks:
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High mortgage rates & affordability drag — For many buyers, the math just doesn’t work at current rates, especially when combined with rising home prices.
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Economic uncertainty, inflation, and recession fears — A weakening economy or tightening credit could dampen buyer willingness or investor appetite.
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Uneven regional performance — Some markets may soften more than others (e.g. overheated markets, declining-population areas).
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Over-extension by sellers — In expectations (pricing too high) or in debt leverage, there’s potential for sellers to misjudge what the market will bear.
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Potential cooling or flattening — If supply increases or demand falters, we may see periods of flat prices or modest declines in certain niches.
It’s wise to stay alert for signs of slowing demand, increased days-on-market, or pricing concessions.
What This Means for Buyers and Sellers
Here are strategies and tips to thrive (rather than just survive) in the current market:
For Sellers:
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Price smartly from the start. Overpricing opens the door to stagnation.
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Stage, present, and market aggressively — photography, upgrades, and marketing can make a big difference.
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Be ready for negotiation; some buyers will push hard where comps are weak.
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Use data and comps to back your price, especially if your market is shifting.
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Consider offering incentives (closing cost credits, flexible timelines) to attract more buyers.
For Buyers:
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Get preapproved and know your budget — move fast when the right home appears.
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Be ready to act decisively, especially in competitive submarkets.
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Don’t ignore slightly inferior properties — a little renovation wiggle room can create value.
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Use contingencies smartly; be cautious but creative (inspection, appraisal, etc.).
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Work with a local agent who knows micro-market dynamics.
Timing considerations:
We may not see dramatic leaps from here, but waiting for “perfect” conditions might mean losing out. In many markets, well-priced homes are still selling briskly. If rates ease or sentiment improves, things could swing quickly.
Call to Action
Contrary to what some doom-and-gloom articles suggest, the real estate market is very much alive. It’s not blazing hot across every market, but it’s far from dormant. Buyers are pursuing homes, sellers are stepping forward, and smart strategists are finding wins.
If you’re thinking about making a move — buying, selling, or simply evaluating your options — now is not a time to be paralyzed. The market is offering opportunities, and with the right guidance and approach, you can make an informed play.