Today’s Tale of Two Housing Markets Summer 2025

 Today’s Tale of Two Housing Markets

 

Depending on where you live, the housing market could feel red-hot or strangely quiet right now. The truth is that local markets are starting to move in different directions. In some places, buyers are calling the shots. In others, sellers still hold the power. It’s a tale of two markets.

 

What’s a Buyer’s Market vs. a Seller’s Market?

In a buyer’s market, there are more homes for sale and not as many buyers. That means homes sit longer, buyers have more negotiating power, and prices tend to soften as a result. It’s simple supply and demand.

 

On the flip side, a seller’s market happens when there aren’t enough homes available for the number of people looking to buy them. Because buyers have to compete with each other to get the house they want, that leads to faster sales, multiple offers, and rising prices.

 

Right now, both of these scenarios are playing out, depending on where you are. So, how do you know what kind of market you’re in? Lean on a local real estate agent. They’ll explain what’s really happening in your area based on these key drivers.

 

The Number of Buyers and Sellers by Region

One of the biggest factors impacting each market is the number of active buyers and sellers. According to Redfin, here’s what that looks like by region (see graph below):

 

Today, the Northeast and Midwest are more likely to be seller’s markets. Buyers still outnumber sellers there, and that keeps things tilted in favor of homeowners. Generally speaking, homes are selling faster and prices are rising in those areas.

But the South and West are leaning more toward buyer’s markets. There are more sellers than buyers, which means more listings to choose from and less competition among buyers.

 

That’s a major shift from a few years ago when sellers had the advantage almost everywhere. Today, your local conditions matter more than ever – and they can vary even from one neighborhood to the next.

 

Price Trends Mirror the Buyer/Seller Divide

When inventory and buyer activity shift, so do prices. In places where demand still outpaces supply, like much of the Northeast and Midwest, prices are continuing to climb.

 

But in parts of the South and West where inventory is up and demand has cooled, prices are softening. And that’s a plus for buyers looking to negotiate in those areas.

 

Here’s the latest price data from ResiClub to show how this divide is shaking out across the top metros in the country (see graph below):

 

This is why it’s the tale of two markets. Roughly half of the top 50 metros are up, and half are relatively flat or down.

 

That said, don’t panic if you own a home in a market where prices are dipping. Most homeowners have built up significant equity over the past few years, and chances are you have too. So, you’re likely still come out way ahead when you sell.

 

Why Local Insights Matter

Even in regions that lean more buyer-friendly right now, there will be cities, towns, and even neighborhoods that don’t follow the regional trends. That’s why a Coldwell Banker Realty agent’s local market expertise is so important. They can help you understand what’s happening all the way down to a zip code level, including:

 

• Whether your area is favoring buyers or sellers
• How to set the right price or craft an offer strategy based on local trends
• The best way to make your move happen, no matter what’s happening in the market

 

Bottom Line

In a market where conditions vary this much from place to place, success starts with understanding every aspect of your local area. Let’s connect so you’ve got an expert in your corner who knows exactly how to guide you through your market, wherever you are.

The Great News for Home and Property Owners!

 

📈 While property values are expected to appreciate over the next five years, rising prices are just one advantage of homeownership or holding real estate.

💰 Owners may also benefit financially through tax deductions—such as depreciation and mortgage interest—which can reduce taxable income.

🏡 Additionally, as principal payments are made on financed properties, equity grows by steadily decreasing the outstanding loan balance.

A Tale of Two Markets

What Buyers and Sellers Need to Know This Spring

By Margaret Heidenry

April 21, 2025

Home shoppers entering the market might find themselves in a head-scratching situation this spring. In one neighborhood, listings may vanish in a flash—often above asking price.

Just a few miles over? Crickets.

Recent economic uncertainty is also likely to affect the housing market, leading to some surprises.

“The current real estate market is definitely one of confliction,” said Cara Ameer, a real estate agent with Coldwell Banker who operates in California and Florida. “You may have homes that have multiple offers and others that are sitting. A lot of this depends on what type of home it is, where it is, and what it has or does not have.”

Whether you’re buying or selling this season, success may come down to reading your local market—and adjusting your strategy accordingly.

More homes on the market

Much of the see-sawing in the housing market comes from a spike in housing stock.

The number of homes for sale shot up 28.5% in March compared to the same time last year, according to the latest data from Realtor.com’s March housing report. That’s the 17th month in a row of year-over-year growth in the number of homes on the market.

New home listings also jumped by 10.2%—marking the busiest March in three years.

An uptick in listings mean some buyers have more room to negotiate and may not need to rush into an offer unless their local market is heating up. Instead, they can tour a variety of homes and take time to compare them.

Home shoppers looking for an edge can get pre-approved early and lock in their rate if they can. They should also run the numbers—not just on the home price but also on the monthly payment, taxes, and insurance.

Price cuts are back

Some sellers hoping for a bidding war over their home may be in for a surprise.

The national median list price held firm at $424,900 in March, according to Realtor.com, which is flat year-over-year. In other words, there’s no surge, no crash, just a market treading water.

However, nationally, nearly one in five homes, 17.5%, saw a price reduction in March, the highest level for that month since at least 2016. That may signal sellers are feeling the pressure of increased housing stock and overall competition.

Volatility in the stock market may lead to additional price cuts in certain markets. Buyers who were planning to take money out of their investments to use for to purchase homes may have less money to spend.

Translation: Sellers may not be in the driver’s seat anymore. But there is a way to make your home stand out.

“Make your home move-in ready,” said Samantha Sousa, a real estate broker in Visalia, Calif. “Add fresh paint, curb appeal, and get your real estate agent to write a thorough listing description.”

Where the market’s still hot

Not every market is cooling its heels, and some metros are downright sizzling.

Only 7% of listings in New York City saw price cuts in March, according to Realtor.com. In Hartford, Connecticut, the situation is even tighter, with 5.5% of the listings seeing price reductions.

These markets are seeing the flip side of the housing market coin because they have in-demand job markets and tighter housing stock. There also isn’t as much new construction in these areas due to a lack of land to build on.

A pent-up desire from buyers after years of waiting on the sidelines may also be fueling these markets.

It’s not unusual to see bidding wars, offers above list price, and quick closings in hot areas.

Despite a fast-moving market, sellers should resist the temptation to list their homes well above other homes in the neighborhood. Especially at a time of economic uncertainty, a well-priced home will draw more buyers and could spark a bidding war. Meanwhile, a too-high list price may result in few, if any, offers.

“There’s a saying the home may be priced right but not priced right for this market,” said Ameer. “You have to work with the pricing to find the sweet spot that will motivate buyers to act. That is usually lower than what a seller expected.”

Where the market’s cooling down

On the flip side, some once-scorching markets are now firmly in the “cooling” category.

In Phoenix, Ariz., 32% of homes saw a price reduction in March, according to Realtor.com. Austin, Texas, wasn’t far behind at 22%. These metros that saw breakneck price gains in the COVID-19 pandemic years are now catching their breath.

Local job market slowdowns, buyers hitting the tops of their budgets and beyond, and an influx of listings play a role in the sluggish pace. These are also areas where there often tends to be more new construction.

In some places, buyers are firmly back in control, with more homes to choose from translating to leverage at the negotiating table.

“Buyers may be able to submit offers lower than asking for homes that have been sitting,” said Sousa. “They have more control over the market than in previous years, so they can write an offer that makes sense for them. This spring, we should see an influx of listings, so be patient and find a home that works for you rather than rushing.”

How sellers can stay competitive

Whether you’re in a hot ZIP Code or a cooler corner of the U.S., anyone looking to put a home on the market this spring may need to adapt.

In softer markets, it’s about patience, flexibility, and presentation.

For example, sellers are not just turning to price reductions. Concessions are also making a comeback—think sellers helping with closing costs, adding home warranties, or even allowances for cosmetic updates.

Sellers can talk to their agent about what’s motivating buyers in your area.

For homeowners in hotter metros, the strategy may be simpler: Price it right and prepare for a fast sale.

“The price needs to be close to appraised value, so an accurate neighborhood sales evaluation is crucial,” said Sousa.

If you would like to have your property valued, reach out today!

Twin Cities Weekly Market Activity Report - Week Ending February 1

 

At The Basil Group, we're celebrating our 27th years at your #1 Twin Cities Real Estate Brokerage!

All data from NorthstarMLS. Provided by Minneapolis Area REALTORS®.

 

U.S. sales of existing homes totaled 4.06 million in 2024, down from 4.09 million the year before, according to the National Association of REALTORS®. Meanwhile, sales of new single-family homes grew for the second year in a row, with an estimated 683,000 units sold last year, a 2.5% increase from 2023, the U.S. Census Bureau reports.

It looks like 2025 will be another impressive year for buying and selling Real Estate!

 

In the Twin Cities region, for the week ending February 1:

• New Listings increased 4.5% to 1,029
• Pending Sales decreased 6.7% to 687
• Inventory decreased 1.9% to 6,844

 

For the month of December:

• Median Sales Price increased 4.6% to $370,000
• Days on Market increased 9.8% to 56
• Percent of Original List Price Received increased 0.3% to 97.0%
• Months’ Supply of Homes For Sale remained flat at 1.9

 

 

September 2024 REAL ESTATE NEWS Brought to you by Dan and Lisa Basil . Home Equity 101: Understanding and Using Your Biggest Asset Home equity is a strong financial asset that homeowners can use in many ways. It represents the difference between the current market value of your home and the outstanding balance on your mortgage. As you pay down your mortgage and as your home's value appreciates, your equity grows, creating a valuable financial resource. Did you know you can use your home equity for various purposes? According to latest research, three out of five home loan holders have at least $100K in tappable equity (the sum a borrower can access while keeping a healthy 20% equity cushion). Here are some ways you can make the most of your home equity: Home Renovations: Enhance your living space and raise the value of your home to boost your equity even more. Consolidation of Debt: Consolidate high-interest debts, such as credit card balances, into a single, more manageable, and often lower-interest loan. Education Expenses: Utilize a lower-interest home equity loan or line of credit (HELOC) to fund your or your children's education. Emergency Expenses: Use home equity as a financial safety net during emergencies. Investing in Real Estate: Buy additional property, either as an investment or a vacation home. Starting a Business: Get the money you need to start or expand your business. Supplement for Retirement: Supplement your retirement income through a reverse mortgage or by downsizing and using the equity to bolster your savings. When Not to Use Home Equity High-Risk Investments: Funding speculative investments can be risky. If the investment fails, you could lose your home. Non-Essential Luxuries: Avoid funding vacations, luxury cars, or other non-essential purchases. They do not increase your home's value and can put you at financial risk if you're unable to repay the loan. Covering Everyday Expenses: Using home equity to cover everyday living expenses may be a sign of more serious financial issues. It's better to address the root causes of financial instability rather than applying a temporary fix. How to Start Utilizing Home Equity Determine Your Equity: Calculate your equity by accessing your home's current market value and subtracting your outstanding mortgage balance. Reach out to me and I can help you with this. Define Your Needs: Clearly outline what you intend to use the equity for. This will help you choose the right type of loan or line of credit. Consult with Professionals: Real Estate Agent: If you’re considering using equity for real estate investments, or just need help to define your next steps, feel free to contact me. I can provide you with all the info you need and connect you with other professionals. Lender: Speak with a mortgage lender or financial institution to explore your options for home equity loans or lines of credit. They will inform you on interest rates, terms, and application requirements. Financial Advisor: For complex decisions, such as using equity for retirement or business, a financial advisor can offer valuable guidance. Apply for the Loan/Line of Credit: Complete the application process with your lender once you've chosen the right financial product and gathered all documentation. Plan Your Expenditures: Ensure you have a clear plan for how you will use the funds and manage repayments. Whether you're looking to improve your home, consolidate debt, or fund major life events, I am here to help you navigate the process of leveraging your home equity. Your journey to financial empowerment begins with understanding and utilizing the resources available to you – let's explore your options together! Essential Fall Home Maintenance Checklist As the vibrant colors of fall begin to emerge, it's the perfect time to prepare your home for the months ahead. Proper maintenance can prevent costly repairs and keep your living space in top shape. Here's an essential fall home maintenance checklist. September: Seal and Protect Seal Windows and Doors Check for drafts around windows and doors. Use weatherstripping or caulk to seal any gaps. Replace worn-out seals to improve energy efficiency and keep your home cozy. Service the Heating System Schedule a professional inspection and tune-up of your furnace or heat pump. Replace filters and test the system to ensure it's working properly. If you live in an apartment, coordinate with your landlord or building management to make sure everything is in a good shape. October: Clean and Inspect. Safety First Inspect the Fireplace and Chimney As the temperatures drop, a warm fire becomes inviting. Have your chimney inspected and cleaned by a professional. Check the fireplace for cracks and repair any damage. If you live in an apartment, check with management for maintenance services. Clean and Store Outdoor Furniture Give your outdoor furniture a good scrub with mild soap and water. Once dry, store it in a shed or garage, or use weather-resistant covers. For apartments, consider indoor storage or protective covers for balcony furniture. Test Smoke and Carbon Monoxide Detectors Ensure these lifesaving devices are functional. Test each detector and replace batteries if needed. Replace units that are over 10 years old to ensure your home is safe. Check Insulation Proper insulation helps maintain indoor temperatures and reduces heating costs. Inspect insulation in your attic, walls, and basement. Add more insulation if needed, particularly in drafty areas. For apartments, discuss insulation concerns with your landlord. November: Prepare for Winter (Homeowners) Inspect and Clean Gutters Prevent water damage by clearing out fallen leaves and debris. Use a sturdy ladder to reach your gutters. Remove debris by hand or with a gutter scoop, then flush with a garden hose to ensure water flows freely. Drain and Winterize Outdoor Faucets and Sprinklers Disconnect and drain garden hoses. Shut off the water supply to outdoor faucets and drain any remaining water. Blow out sprinkler systems to prevent water from freezing in pipes. Check the Roof Before winter arrives, inspect your roof for missing, damaged, or loose shingles. Look for signs of wear around chimneys and vents. Consider hiring a professional for a thorough inspection. Trim Trees and Shrubs Trim dead or overgrown branches to prevent damage to your home during windy or stormy weather. Keep branches at least three feet from the house to avoid damage. Enjoy the cozy season with the peace of mind that your home is well-prepared and maintained! If you need any professional recommendations or further advice, feel free to reach out! QUESTIONS? VISIT www.thebasilgroup.com

 

REAL ESTATE NEWS Brought to you by Dan and Lisa Basil . Navigating Homeownership with an HOA If you’re considering buying a home in a community governed by a Homeowners Association (HOA), you’re not alone. HOAs are common, offering a structured community environment with shared amenities and well-maintained surroundings. However, navigating life with an HOA can come with its own set of challenges and benefits. Here’s a handy guide to help you make the most of your HOA experience. The Pros of Living in an HOA Community Well-Maintained Properties and Common Areas: One of the primary advantages of living in an HOA community is the assurance that your neighborhood will be well-maintained. HOAs enforce rules that ensure lawns are mowed, properties are in good repair, and common areas are clean and attractive. This can enhance your home’s curb appeal and overall value. Access to Amenities: Many HOA communities offer amenities like pools, gyms, parks, and clubhouses, providing a higher quality of life without the hassle and expense of maintaining them yourself. Conflict Resolution: HOAs mediate disputes between neighbors, helping to resolve issues like noise complaints or property boundaries amicably. This can save you the stress of direct confrontation and promote a peaceful living environment. The Cons of Living in an HOA Community Monthly Fees: HOA fees are a regular part of life in these communities. While these fees go toward maintaining common areas and amenities, they can add a significant cost to your monthly budget. Restrictions and Rules: HOAs enforce guidelines that can sometimes feel restrictive. From the color of your front door to the type of landscaping you can install, these rules are designed to maintain uniformity and property values. However, they might limit your personal freedom to modify your home as you see fit. Potential for Conflict: While HOAs can help resolve disputes, they can also be a source of tension. Disagreements over rule enforcement, fees, or community decisions can cause friction between homeowners and the HOA board. Tips for a Harmonious HOA Experience Read the Rules: Before buying a home in an HOA community, carefully review the Covenants, Conditions, and Restrictions (CC&Rs). These documents outline all the rules and regulations you’ll need to follow. Understanding these guidelines upfront helps prevent any surprises. Attend HOA Meetings: Stay informed and involved by attending meetings. These are opportunities to voice opinions and vote on community matters. Communicate Effectively: If you have concerns or suggestions, communicate them clearly and respectfully with the HOA board. Building a positive relationship with board members can make it easier to address any issues that arise. Stay Informed About Fees: Know what your HOA fees cover and stay updated on any changes. Knowing how your money is being used can help you appreciate the value provided by the HOA and avoid any misunderstandings. Embrace the Community Spirit: HOAs aim to foster a cohesive, well-maintained community. Embrace the spirit of cooperation and mutual respect that an HOA promotes. Get to know your neighbors, participate in community events, and contribute to the positive atmosphere of your neighborhood. Navigating life with an HOA can be a rewarding experience when approached with the right mindset. By understanding the pros and cons and following these tips, you can enjoy the benefits of a well-managed community while minimizing potential drawbacks. Pet-Friendly Home Design Tips Whether you’re a current pet owner or considering bringing a furry friend into your home, creating a pet-friendly environment can enhance both your life and theirs. Designing a space that accommodates pets’ needs doesn’t mean sacrificing style or functionality. Here are some tips to achieve a pet-friendly yet elegant home. Flooring Choices for Pet-Friendly Homes When it comes to flooring, durability and ease of cleaning are key. Here are some pet-friendly options: Tile and Laminate: Scratch-resistant and easy to clean, perfect for managing pet hair and accidents. Hardwood: Opt for harder woods like oak or hickory that can withstand scratches. Applying a durable finish can also protect your floors from pet-related damage. Area Rugs: Choose rugs made of stain-resistant materials with non-slip backing to prevent accidents. Pet-Friendly Furniture Selecting the right furniture can make a big difference in maintaining a pet-friendly home. Durable Fabrics: Choose furniture with durable, easy-to-clean fabrics like microfiber or leather, which are less likely to hold onto pet hair and are easier to wipe down. Washable Covers: Invest in furniture with removable and washable covers for easy cleaning. Pet-Friendly Spaces: Create designated spaces for pets with cozy beds or blankets to give them a comfortable spot to relax and keep fur and dirt confined to one area. Outdoor Spaces for Pets If you have a yard, designing a pet-friendly outdoor space can provide your pets with a safe and enjoyable environment. Secure Fencing: Ensure your yard is enclosed with a secure fence to keep pets safe, and check regularly for gaps. Pet-Safe Plants: Avoid toxic plants like lilies and azaleas. Opt for pet-safe plants such as marigolds and sunflowers. Learn more about keeping your pets safe here. Shaded Areas: Create shaded areas where pets can escape the sun with trees, shrubs, or a gazebo. General Tips for a Pet-Friendly Home Proper Storage: Keep pet supplies organized with designated storage areas for food, toys, leashes, and grooming tools. Regular Cleaning: Vacuum and clean regularly to manage pet hair and dander. Air purifiers can also help improve indoor air quality. Safety First: Keep hazardous items, such as cleaning supplies and medications, out of pets’ reach to prevent accidents. Even if you don’t have a pet now, these tips can help you create a welcoming space for future pets or visiting furry friends. With the right choices, you can design a space that’s both beautiful and accommodating for pets. Happy decorating! QUESTIONS? VISIT www.thebasilgroup.com