As the housing market continues to evolve, Nest's goal is to keep you informed on the trends that matter—whether you’re thinking about buying, selling, or simply keeping an eye on your home’s value.
In this issue of Real Insights, we’ll look at rising inventory levels, current mortgage rate dynamics, and shifting buyer and seller behaviors. With more homes hitting the market and rates settling into a new normal, it’s an important moment to understand how today’s trends could shape your real estate decisions.
What You Need to Know — Current Trends
45%
OF RENTERS LIKELY TO BUY
Nearly half of renters say they’d be “very or extremely likely” to buy if mortgage rates fall. With affordability challenges easing and inventory rising, many renters may shift from renting to buying in the coming year.*
24%
OF BUYERS ARE FIRST-TIMERS
First-time buyers made up just 24% of home purchases this past year—the lowest share since 1981. High prices and limited starter-home inventory remain challenges, but life events and potential rate drops could bring more first-timers back into the market.**
36%
OF SELLERS REDUCED THEIR PRICE
As inventory grows, more sellers are adjusting expectations. Last year, 36% reduced their asking price at least once, and 24% offered buyer incentives. With buyers gaining leverage, competitive pricing and strong presentation are more important than ever.**
17%
OF BUYERS CHOSE MULTI-GENERATIONAL HOMES
A record 17% of buyers purchased multi-generational homes, driven by cost savings, the need for elder care, and adult children moving back home. This growing trend highlights changing family dynamics and evolving housing needs across all generations of buyers.**
20
MILES IS THE DISTANCE MOVED BY THE MEDIAN BUYER
The median distance buyers moved was 20 miles, down from a peak of 50 miles during the pandemic. Many buyers today are opting to stay cloer to family and community, reversing the long-distance moving trends observed earlier this decade.**
*Data from: Zillow, Consumer Housing Trends Report
**Data from: National Association of Realtors Home Buyers and Sellers Profile
BY THE NUMBERS
Inventory is up.
What does that mean for the market?
Supply matters in housing. When inventory increases, buyers have more choices, and sellers must adjust. Over the past five years, national active listings have steadily increased, nearing or surpassing pre-pandemic levels in many metropolitan areas. This shift is altering the dynamics of today’s market, transitioning from the seller-dominated conditions of recent years to a more balanced environment.
For Buyers
- More choice, less pressure. With inventory rising in many markets, buyers now have more choices and time. bidding wars are less common.
- Negotiating power. Sellers are more likely to offer price cuts, incentives, or rate buydowns to attract buyers.
- Pricing moderation. Slower home price growth may create new buying opportunities, especially where supply outpaces demand.
For Sellers
- Price strategically. With more listings on the market, strategic pricing is key to attracting serious buyers.
- Prepare to compete. Incentives, staging, and prep matter more than ever – presentation can make all the difference.
- Today's market moves a little differently. Homes are still selling, just not as fast as during the boom. Having the right strategy in place is even more important.
WANT TO DIG DEEPER?
The chart above illustrates the steady recovery of inventory over the past five years. And with nearly 500,000 more sellers than buyers nationally (according to Realtor.com), supply is outpacing demand in many regions.
But while national trends tell part of the story, real estate is always local. If you're considering buying or selling, let's connect. One of our agents could be happy to help you navigate what's happening in your neighborhood.
FALL TREND WATCH
Let's Talk Interest Rates
Mortgage rates remain one of the key forces shaping today's housing market. For more of the past three years, they have stayed between 6.5% and 7.5%, well above pandemic-era lows but far below the double-digit highs of earlier decades. This stabiliy at higher levels has reshaped affordability and market expectations.
We're seeing many buyers and sellers move forward based on life needs and local opportunities, not just rates. If you're wondering how the current market affects your plans, we'd be happy to talk it through.
Thinking about buying or refinancing? Nest Realty is happy to recommend a great local lender who can help you explore your options and make the process a little easier.
