Co-authored by Moneyshow Editor-in-Chief Redfin and Mike Larson
If you’re just starting out in real estate, the housing market may feel like a puzzle with too many moving pieces. Prices go up and then fall. The house looks abundant in abundance in abundance, and the next year is scarce. If interest rates rise before you lock yourself in a mortgage, your potential monthly payments may change dramatically.
Learning how to recognize and adapt to these changes in housing market trends can help you, whether you are keeping an eye on the market or simply keeping an eye on it.
To break it all down, we partnered with Moneyshow. There, key real estate voices recently shared insights about the company’s virtual exposition platform. In this Redfin guide, we walk through the key forces of shaping real estate today and take a closer look at the expert’s perspective on what’s going on in 2025.
Why market trends are important
Trends are more than topics. They provide context and guardrails for decision-making. Without them, it is easy to misconceive short-term spikes and dips as more permanent.
This is what the Redfin data currently shows:
In August 2025, home prices in the US rose 1.5% year-on-year, with median selling prices at around $439,419. Meanwhile, the number of homes sold fell by 2.5%, while active listings rose 10.1% over the same period. Tell the statistics: There are nearly half a million sellers in the US market than buyers, but so far, there is the biggest record gap for each Redfin data. Also, just 28% of homes sell at more than the asking price, starting from about 32% a year ago.
This data suggests:
The fact that listings are rising while sales are falling is aimed at easing demand and increasing room for negotiation. Seller surplus to buyers is a classic signal for buyers’ markets in many places, so buyers may get more leverage. Slowing sales and competition slows down the chances of a fierce bidding war and a bit of a frenzy in timing (although local dynamics are still important).
In short, trends can help you turn noise into patterns and see when the market is cooling, heating, or balanced.
Core factors that shape the market
To understand trends, it helps to understand the power of play. Below are some of the major factors and how it will appear in today’s data.
Supply and Demand: The balance between available homes and enthusiastic buyers forms price and negotiation power. Interest Rates: Higher interest rates make mortgages more expensive, reducing affordable prices and often reducing cooling demand. Lower rates can attract more buyers. Check out Redfin’s mortgage calculator to see how your fees affect your monthly payments. Regulations and policies: Local or state rules, such as short-term rental restrictions or new tax proposals, can change the profitability of property owned in certain areas. Investor Activities: From small landlords to large investors, the decision to buy or hold property can affect both supply and competition.
Think of these as “levers” that keep the housing market moving.
Read >>Is this the best time to buy a house?
Look at the current real estate market
So, what do these trends look like now? According to Moneyshow’s contribution experts, 2025 is beginning to return to stability, but without some surprises, it has grown into a year-long transition.
Multi-family opportunities may be emerging
Kathy Fettke, founder of Realwealth.com, says that multi-family is in a very different world than in recent years. She expects pricing and rent to stabilize as there is less new supply offered online compared to 2023-2024. She calls this period a potential “sweet spot” of the cycle for investors.
When supply is constrained, existing rental inventory becomes important. For those looking at a market with strong rental demand, this could mean less stable cash flow and volatility than excessive conditions.
Single-family homeowners are stable
Fecke also pointed out that homeowners today are not facing the same struggles seen in home busts in the mid-2000s. So many people are trapped in low fixed-rate mortgages, so they are not under pressure to sell, even if the fees are high. Its stability is unlikely due to widespread residential crashes.
For everyday buyers, this may still feel like the price is high, but it means that you are less likely to see sharp, volatile drops. It reminds us that not all “slowing down” in the market is the same.
Foreign buyers and life changes are bringing about movement
Patrick Duffy, senior real estate economist at US News & World Report, noted that foreign buyers are gradually returning, increasing demand for housing. He also highlighted how the so-called “lock-in effect” is fading. Even with low-cost mortgages, people ultimately need to move for new jobs, growing families, or other life changes.
This is an important reminder that the housing market is never static. Life events and external buyers create cancellations even when affordable prices are strict.
Investors continue to be active
Cotality’s leading economist Thomas Malone said small and medium-sized investors still account for “about 25-30% of market activity.” Despite the wider markets being cooled, their continued presence supports the stability of certain segments.
The combination of participation helps explain why supply imbalances do not always lead to a significant price drop. In particular, investors’ demand can absorb some slackening in rental demand and upward trends.
Take home
Trends in the housing market, although at first, can seem complicated, are actually the driving and drag of supply and demand, demand, interest rates, and human behavior. By learning to recognize these signals, you can place a list that you can see in the news you hear and context.
For those who have begun their real estate journey, their goal is not to predict the future. It’s about understanding the troops in play so that you can make informed and confident decisions when the time is right.
