Are We Entering a Buyer’s Market?
The U.S. housing market is sending mixed signals in 2025—and if you’re a real estate investor or a first-time buyer, you’ve probably noticed it.
Inventory is up.
Buyer activity is down.
And it’s not playing out the way we’re used to seeing during the typical peak listing season.
So, what’s going on?
Rising Listings, Vanishing Buyers
Every June, we expect to see more homes hit the market. That’s not unusual. But this year, the demand hasn’t followed the supply.
Instead of a flurry of offers, homes are sitting longer. We’re seeing more price cuts, longer days on market, and frustrated sellers wondering where all the buyers went.
The core issue? Interest rates.
Rates are still high, and they’ve created what I call the “golden handcuffs” of cheap debt.
The Golden Handcuffs of Cheap Debt
Let me give you a real example.
Danille owns a condo with a 2.5% mortgage. She wants to upgrade, but if she sells and buys something new, her mortgage rate jumps to 7% or more. That move alone could double her monthly payment, despite sitting on hundreds of thousands in equity.
She’s not alone.
Between 2020 and 2022, millions of homeowners locked in historically low interest rates. That cheap debt is now acting like an anchor, keeping homeowners in place—even if they want to move.
This Is Not 2008
Here’s where things differ from the 2008 crash:
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In 2008, people had to sell—they were overleveraged with little to no equity.
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In 2025, people can sell, but they won’t—because financially, it just doesn’t make sense.
So what we have now is a psychological standoff:
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Homeowners won’t sell unless forced.
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Buyers won’t buy unless prices or rates drop.
That’s jamming up the entire single family housing market.
So… Are We Headed for a Buyer’s Market?
Not everywhere. But in select metros, we’re already seeing signs:
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Motivated sellers
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Investor pullbacks
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Move-up buyers staying put
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First-time buyers still priced out
That’s a perfect storm for softening prices, without a full-blown crash.
What Should Real Estate Investors Do?
If you’re an investor, this could be your window of opportunity—but you need to think strategically. Here’s how I approach it:
1. Focus on Cash Flow
Price is important, but monthly cash flow is king. Make sure the numbers work now, not just in some theoretical future.
2. Lock In Fixed Rate Debt
A fixed-rate mortgage gives you stability. If rates drop, great—refinance. If they rise, you’re protected.
3. Be Patient, But Be Ready
Start watching the market now. We’re already seeing divorce sales, tired landlords, and stale listings; all signs of motivated sellers.
Want to avoid costly mistakes?
I created a free Single Family Rental Due Diligence Checklist based on 30+ years of investing. Download it here to make smarter buying decisions.
