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Chris Lamm

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The Market Just Shifted, Here’s What You Need to Know

Originally published

Watch the original video: The Housing Market Just Flipped- Here's What No One's Saying

The Real Reason Buyer Demand Just Flipped

We’re seeing a clear shift in the housing market. National homebuilders like Lennar are offering some of the biggest buyer incentives in years. That’s a strong signal that buyer demand has softened. Inventory is climbing across the country, and buyers are gaining negotiating power. Meanwhile, companies like Redfin and Zillow have revised their forecasts. Zillow now expects prices to drop by 1.4% in 2025. This is the first time in years we’re seeing a measurable pullback in home values. Sellers who price above local comps may sit on the market longer, while motivated sellers are adjusting quickly to get offers.

Why Waiting Might Cost You More Than Acting Now

Many buyers are hesitating, thinking prices or rates will drop dramatically. But inventory is still relatively low in historical terms, and in states like California, it hasn’t surged as much as others. On the flip side, if rates do come down, buyer competition could spike again, pushing prices back up. Acting now could give you an edge: less competition, more negotiating power, and sellers who are willing to offer concessions like rate buy-downs or cover closing costs. Waiting could cost you the opportunity to make a better deal in this moment.

How to Spot the Signs of a Changing Market in Your Area

Watch inventory levels and days on market. Nationally, it now takes an average of 38 days to sell a home. In states like Florida and Texas, inventory is up 50 percent or more. In Shasta County, it’s up by 25 to 35 percent. That means sellers have to work harder and price more competitively. More listings in your area often mean more negotiating power for buyers.

The Federal Reserve held rates steady in June, but political pressure is building and volatility remains. Many lenders avoid discussing temporary buy-down strategies that can significantly reduce early monthly payments. These tools are available now and can make a big difference while long-term rates remain elevated. Smart buyers are using them to bridge the gap.

Rates and terms subject to change without notice. Not a commitment to lend. Not available in all states. This is not tax, legal, or financial advice. Consult a qualified professional for your specific situation.

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Reverse mortgage borrowers must complete a counseling session with a HUD-approved counselor before applying. This material is not from HUD or FHA and has not been approved by HUD or any government agency.

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