Buyers Return to the Housing Market: Zillow Predicts Sustained Momentum Ahead

Housing Market Defies Expectations with September Surge, Buyers Gain Ground

Washington D.C. – the Nation’s housing market demonstrated unexpected resilience in september 2025, bucking seasonal trends and registering increased activity. A decline in mortgage rates, coupled with continued strength in the stock market, spurred a renewed wave of interest from both buyers and sellers following a subdued August, according to recent data.

new Listings and Inventory Trends

Property listings experienced a 3% year-over-year increase in September, reversing a 3% decrease observed the previous month. Monthly listings dipped just 2%, significantly outperforming the historical average of a 9% decline during the autumn season. Total housing inventory decreased only 1% from August to september, remaining 14% higher than levels recorded last year according to industry reports.

Did You Know? The typical home spent 34 days on the market in September, up from 28 days a year earlier, suggesting a slight cooling but still solid demand.

A shifting Balance of Power

The real estate landscape is adapting; approximately 15 of the 50 largest metropolitan areas in the country are currently categorized as buyer’s markets, a notable increase from six the year prior. This demonstrates an evolution in negotiating power.

Top Buyer-Amiable Metros

Analysis identifies several metropolitan areas particularly favorable to buyers:

• Miami, Florida
• New Orleans, Louisiana
• Austin, Texas
• Jacksonville, Florida
• Indianapolis, Indiana

Seller’s Markets Remain Competitive

Conversely, select markets continue to favor sellers, driven by limited housing supply and strict zoning regulations. These include:

• Buffalo, New York
• Hartford, Connecticut
• San Jose, California
• San Francisco, california
• New York, New York

Market Type	Key Characteristics	Examples
Buyer’s Market	Higher inventory, longer time on market, price reductions.	Miami, Austin, New Orleans
Seller’s Market	Low inventory, fast sales, rising prices.	San Francisco, New York, San Jose

Mortgage Rates and Home Sales on the Rise

The average 30-year fixed mortgage rate has fallen to around 6.19%, the lowest point recorded in 2025, according to Freddie Mac. Afterward, existing-home sales experienced a seven-month high in September, signaling improved affordability. While approximately 15% of pending sales were withdrawn due to cautious buyers,sellers are responding by making price adjustments and increasing flexibility in negotiations.

Pro Tip: potential homebuyers should get pre-approved for a mortgage to demonstrate seriousness to sellers and understand their budget.

Economists predict this “unseasonably active” trend will extend into the holiday season, fueled by decreased borrowing costs and unmet demand. Those who have been considering a home purchase may find this an opportune moment, representing the most meaningful opening in nearly three years.

Understanding the Long-Term Housing Market

The housing market is influenced by a multitude of factors including economic growth, population shifts, and government policies.Long-term trends suggest that housing demand will likely remain strong,driven by demographic factors such as household formation. Though, affordability and interest rates will continue to play a pivotal role in shaping market dynamics. This September’s activity coudl indicate a stabilization,rather than a boom,allowing for more sustainable growth in the future.

Frequently Asked Questions about the Housing Market

What are your thoughts on the recent housing market trends?

Do you think this surge in activity will continue through the winter months?

Share your insights in the comments below!

How do fluctuating mortgage rates impact homebuyer affordability and confidence, according to the article?

The Shift in Market dynamics: Why Now?

for months, the housing market felt…stuck.High mortgage rates,limited inventory,and economic uncertainty kept many potential homebuyers on the sidelines. But the landscape is changing. Zillow’s latest data and forecasts point to a definitive return of buyers, and importantly, suggest this isn’t a fleeting trend. Several key factors are converging to create sustained momentum in real estate, impacting both home buyers and home sellers.

Mortgage Rate Influence & Affordability

The biggest driver? A slight, but significant, easing of mortgage rates. While still higher than the historic lows of recent years, the recent dip has unlocked affordability for a segment of the population previously priced out. This isn’t just about lower monthly payments; it’s about renewed confidence.

* 30-Year Fixed Rate: Tracking the movement of the 30-year fixed mortgage rate is crucial. Even a quarter-percent decrease can translate to substantial savings over the life of a loan.

* Adjustable-Rate Mortgages (ARMs): While less popular, ARMs are seeing increased interest as buyers seek initial lower rates.

* FHA Loans & VA Loans: Government-backed loans continue to be vital for first-time homebuyers, offering more lenient requirements and lower down payments.

Zillow’s Forecast: What to Expect in the coming Months

Zillow’s economists are predicting this buyer resurgence will continue into 2026. their analysis focuses on several key indicators:

* Pending Sales Growth: A consistent increase in pending sales signals growing buyer demand. Zillow data shows a steady climb in recent weeks.

* Days on Market: Homes are spending less time on the market, indicating increased competition among buyers. This is especially noticeable in desirable locations.

* Inventory levels: While still below historical averages, housing inventory is slowly increasing, providing buyers with more options.This is a critical factor in preventing a rapid price surge.

* New Construction: The uptick in new home construction is adding much-needed supply, particularly in areas experiencing high population growth.

Regional Variations: Hot Markets & Cooling Spots

The recovery isn’t uniform across the country. Some markets are experiencing a more robust rebound than others.

* sun Belt Strength: Cities in the Sun Belt – like Atlanta, Charlotte, and Raleigh – continue to attract buyers with their relatively affordable housing and job opportunities.

* midwest Resilience: The Midwest is showing surprising strength, with stable prices and steady demand.

* West Coast Adjustments: California and Washington are still navigating affordability challenges, but even these markets are seeing increased activity as buyers adjust to the new normal.Luxury homes in these areas are experiencing a slower recovery.

Understanding Buyer Behavior in 2025

Today’s buyers are different. They’re more informed, more cautious, and more tech-savvy.

1. Online Research: The vast majority of buyers begin their search online, utilizing platforms like Zillow, Redfin, and Realtor.com.
2. Virtual Tours: Virtual home tours have become a standard expectation,allowing buyers to narrow down their options before scheduling in-person showings.
3. Data-Driven Decisions: Buyers are relying on data – including school ratings, crime statistics, and neighborhood demographics – to make informed decisions.
4. Prioritizing Home Features: Post-pandemic, buyers are prioritizing features like home offices, outdoor space, and updated kitchens.

The Impact on Home Sellers: A Balanced Approach

For homeowners considering selling, this is a favorable time. However, it’s not a return to the frenzied bidding wars of 2022.

* Pricing Strategy: Accurate pricing is more crucial than ever. Overpricing can lead to a home sitting on the market, while underpricing can leave money on the table.

* Home Readiness: Investing in minor repairs and staging can significantly increase a home’s appeal.

* Professional Photography: High-quality photos are essential for attracting online buyers.

* Working with a Real Estate Agent: A skilled real estate agent can provide valuable guidance on pricing, marketing, and negotiation.

Navigating the Market: Practical Tips for Buyers

* Get Pre-Approved: Before you start your search,get pre-approved for a mortgage. This will give you a clear understanding of your budget and make your offers more competitive.

* Be Patient: Finding the right home takes time. Don’t rush the process.

* Consider Your Needs: Prioritize your must-haves and be willing to compromise on your nice-to-haves.

* Don’t Be Afraid to Negotiate: Even in