National Real Estate Market Update – September 2025

The U.S. housing market continued to show modest gains in September, with existing-home sales rising 1.5% month-over-month, according to the National Association of REALTORS® (NAR). Year-over-year, sales increased 4.1%, reflecting the impact of falling mortgage rates, growing inventory, and improving affordability. Sales expanded in the Northeast, South, and West, while the Midwest saw a slight decline.

Inventory Continues to Expand

Total housing inventory reached 1.55 million units at the end of September, up 1.3% from August and 14.0% higher than September 2024. This represents a 4.6-month supply of unsold homes, unchanged from August, but above the 4.2 months seen last year—indicating a market that continues to balance opportunities for buyers and sellers.

NAR Chief Economist Dr. Lawrence Yun noted, “As anticipated, falling mortgage rates are lifting home sales. Improving housing affordability is also contributing to the increase in sales. Inventory is matching a five-year high, though it remains below pre-COVID levels.”

Prices Remain Strong

The national median existing-home price for all housing types was $415,200 in September, up 2.1% from last year—marking the 27th consecutive month of year-over-year gains. Regional trends varied slightly:

• Northeast: $500,300 (+4.1% YoY)

• Midwest: $320,800 (+4.7% YoY)

• South: $364,500 (+1.2% YoY)

• West: $619,100 (+0.4% YoY)

This steady price growth, combined with expanding inventory, continues to create a more balanced market where buyers have options and sellers maintain strong value.

Buyer and Seller Activity

• Median time on market: 33 days, up slightly from 31 days in August.

• First-time buyers: 30% of all sales, up from 28% in July and 26% last year.

• Cash sales: 30%, unchanged from last year.

• Investor/second-home buyers: 15%, down from 21% last month.

• Distressed sales: 2%, remaining historically low.

Mortgage Rates

Mortgage rates continue to ease, with the average 30-year fixed-rate mortgage at 6.35% in September (Freddie Mac), down from 6.59% in August but slightly above 6.18% a year ago. This decline gives buyers additional flexibility to explore options like rate buydowns and low down payment programs.

Single-Family vs. Condo/Co-op Sales

• Single-Family Homes: Sales rose 1.7% month-over-month and 4.5% year-over-year, with a median price of $420,700 (+2.3% YoY).

• Condominiums & Co-ops: Sales remained flat month-over-month and year-over-year at 370,000 units, with a median price of $360,300 (–0.6% YoY).

Regional Highlights

• Northeast: Sales increased 2.1% MoM, up 4.3% YoY.

• Midwest: Sales decreased 2.1% MoM, up 2.2% YoY.

• South: Sales grew 1.6% MoM, up 6.9% YoY.

• West: Sales rose 5.5% MoM, unchanged YoY.

Key Takeaways for Buyers & Sellers

For Buyers: Falling mortgage rates and expanding inventory give more choices and negotiating power. With prices growing modestly in most regions, buyers are in a stronger position to find the right home.

For Sellers: Prices remain robust, but more homes on the market increase competition. Strategic pricing, effective marketing, and excellent presentation remain critical for a successful sale.

The market continues to shift toward balance, providing opportunities for buyers while preserving value for sellers. Staying informed is key as we move through the fall season.

Krista Freshour

Realtor

865-776-9608

Information provided by National Association of Realtors