August 2025 Housing Market Report

Thinking about buying or selling a home -- or just wondering why everyone’s talking about mortgage rates again? You’re not alone. With so much noise out there about the state of the housing market, it’s tough to know what actually affects you.

That’s why we break down the latest housing trends each month—no hype, just the key data and shifts that matter. At Nuvision, we want our members to have a clear view of the market, so they can make confident decisions, whether they’re ready to move or just planning ahead.

Steven Thomas: Why Prices Haven’t Collapsed

A lot of people still think housing is due for a major correction, but Steven Thomas reminds us that prices don’t just fall because affordability feels tight. Economics doesn’t run on “gut” feelings—it runs on supply, demand, and distressed sales.

Thomas points to three signals that would warn of sharp price drops:
1. Too many homes on the market
2. A wave of distressed sales (foreclosures and short sales)
3. Weak buyer demand

Right now, only demand, dampened by high mortgage rates, is a concern, but it hasn’t collapsed to Great Recession levels.  The other two conditions aren’t showing up -- inventory hasn’t exploded and distress is minimal. He notes that during 2007–2010 all three signals were red flags, which is why prices plunged then. Today, the data tells a different story: affordability is stretched, but the market fundamentals don’t support a crash.

Zillow: Buyers Gaining Power, Sellers Feeling the Pressure

Zillow’s latest numbers show that buyers are slowly regaining leverage:

• 27 major metro areas are now in neutral or buyer’s territory, up from 24 last month.
• Homes are sitting longer—median days on market hit 60, the longest July in Zillow’s data.
• Price cuts hit a record 27.4% of listings, the highest since Zillow began tracking.
  
  

Half of the largest markets saw home values fall year-over-year, especially in the South and West, where builders have kept pace with demand. Meanwhile, markets in the Midwest and Northeast are still seeing gains because inventory is tighter and more affordable.

Zillow sees signs of relief for mortgage rates. Rates have drifted lower into the mid-6% range after weaker job reports and cooling inflation shifted market expectations toward possible Fed cuts. But affordability is still stretched—payments are nearly $1,000 higher per month than before the pandemic. For those who can qualify, however, this environment means more negotiating room and less competition.

Redfin: Slowest Summer in a Decade

Redfin paints a picture of a sluggish summer market:

• Median sale price: $443,867 (+1.4% YoY)
  
• Homes sold: 423,090 (-0.9% YoY)
  
• New listings: 526,244 (-1.25% YoY)
  
• Time on market: 43 days, the slowest July since 2015

With demand softening, sellers are reacting by pulling back. Active listings fell month-over-month—the biggest drop since 2023—as some would-be sellers decided not to risk listing after watching homes sit or sell below asking price. Others are renting their homes out instead of selling at a loss.

Despite softer sales, prices are still edging higher—likely because supply is tightening just as buyers play the waiting game. The typical home sold for about 1% under asking, and only 29% of homes went above list price, the lowest July share since 2019.

Contracts are also shaky. Roughly 58,000 purchase agreements were canceled in July (15.3% of homes under contract), the highest July rate in Redfin’s records. On rentals, Redfin reports asking rents jumped 1.7% year over year, the biggest gain in 2.5 years, as multi-family construction slows and supply shrinks.

NAR: Prices Rising in Most Metros, But Unevenly

The National Association of Realtors (NAR) says three out of four metro areas saw home price gains in Q2 2025, though that’s down from 83% in Q1. The national median single-family home price is now $429,400, a record high, up 1.7% from a year ago.

Price trends by region:

• Northeast: $527,200 (+6.1%)
  
• Midwest: $328,800 (+3.5%)
  
• West: $646,100 (+0.6%)
  
• South: $376,300 (flat)
  

The South is showing signs of correction thanks to new construction, while the Midwest and Northeast are benefiting from affordability and limited supply.

Affordability remains strained. Families now spend 25.7% of their income on mortgage payments for a typical existing home, and first-time buyers are even more stretched, spending nearly 39% of income on starter homes.

5 Key Takeaways This Month

1. Prices aren’t crashing – Despite affordability challenges, the combination of limited supply and low distress sales is holding values steady.
2. Buyers have more leverage – With listings sitting longer and sellers cutting prices at record levels, negotiations now favor qualified buyers.
3. Sales pace is slowing – Homes are taking the longest time to sell in a July since 2015, signaling hesitation from both buyers and sellers.
4. Regional differences matter – Midwest and Northeast markets are still seeing strong price growth, while parts of the South and West are correcting.
5. Affordability is the core issue – Mortgage payments remain nearly $1,000 higher than before the pandemic, stretching buyers thin despite slightly lower rates.

Looking Ahead: Insights You Can Use

Affordability is still a challenge, but prices aren’t dropping the way some expected. That’s because inventory remains limited, and there’s no wave of distressed sales. For qualified buyers, though, this market looks better than it has in a long time—less competition, more options, and sellers who are ready to deal.

We’ve been helping members navigate markets like this for 90 years—and today, we’re still making sure you have the information you need to make smart, confident moves. Whether you’re buying your first home, thinking about selling, or just watching where things go next, we’ll keep you in the know with updates you can actually trust and use.