October 7, 2025
This is a question that many are asking after so many years of a seller’s market within the real estate sector. There has been a shortage of listings for so long that it is hard to comprehend an era in which buyers actually had a variety of choices for their next home. The beginnings of the real estate market beckon back to the time of the Great Recession of 2008 when the real estate market was red hot fueled by risky mortgage products which did not sufficiently restrict the qualification of buyers. Foreclosures and short sales reigned across America and builders cut back on their building for years to come.
Gradually, the excess inventory was absorbed, and the insufficient pace of building new homes did not keep up with population growth. This situation strengthened the real estate market, which was already strong when the pandemic induced recession hit and mortgage rates moved to historic lows. The result was a steep escalation of home prices as buyer demand soared. Fast forward to the past few years and higher mortgage rates along with these high home prices made many homes unaffordable to potential buyers.
Inevitably, this situation has caused home prices to level off. Combined with the fact that mortgage rates have started to move lower, affordability has improved while the number of listings have increased buyers’ choices. Are we moving to a buyer’s market? Certainly, the real estate market is in transition. Many sellers have pulled their listings because they are not selling, and others are locked in to holding their homes with lower mortgage rates. But the tide is coming as boomers can’t hold onto their homes for ever and life goes on for others as families expand and moves have to take place. For now, we will say the real estate market is more balanced, but a buyer’s market is not out of the question for the future.
Source: Origination Pro
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