2025 Real Estate Trends

Wondering if it’s a buyers or sellers market in 2025? Learn how current real estate trends affect your buying or selling strategy and what to expect this year.

When you’re thinking about buying or selling a home, it’s important to know whether you’re in a buyers or sellers market.

Understanding the current real estate climate can help you make smarter decisions, whether you’re trying to get the best price or secure the right home for your needs.

What Is a Buyers Market?

A buyers market happens when there are more homes for sale than there are buyers looking to purchase. This usually gives buyers the upper hand. Sellers may need to lower prices, offer incentives, or agree to more negotiation points to make a deal happen.

Signs of a buyers market include:

• Homes staying on the market longer
• Price reductions becoming common
• More listings available than usual

If you’re buying during a buyers market, you’ll often have more options and better negotiating power. If you’re selling, it may take longer to close a deal, and you might need to price competitively.

What Is a Sellers Market?

A sellers market is the opposite. It happens when there are fewer homes for sale than there are buyers ready to buy. This gives sellers an advantage, often leading to higher prices and quicker sales.

Common signs of a sellers market include:

• Homes selling quickly, sometimes within days
• Multiple offers on the same home
• Sale prices often above the listing price

If you’re selling during a sellers market, you’re more likely to get your asking price—or even more. Buyers, on the other hand, may have to act quickly and may find themselves competing against others.

Are We in a Buyers or Sellers Market Right Now?

As of early 2025, the real estate market remains mixed, depending on where you are. Nationally, interest rates have stayed higher than we saw a few years ago, which has cooled off the frantic sellers markets of 2020–2022. In many suburban and rural areas, inventory is beginning to rise, leaning slightly toward a buyers market. In hotter urban markets, however, low inventory continues to favor sellers.

In Minnesota, for example, we’re seeing a shift. More homes are coming on the market, and price growth has slowed, but competition remains strong in desirable areas. This makes it a balanced market in many places—neither strongly favoring buyers nor sellers.

How to Navigate Today’s Market

Whether you’re buying or selling, the key is to understand your local conditions:

For Buyers: Get pre-approved for a mortgage and work with an agent who knows how to spot value. Be ready to move quickly when the right home appears.

For Sellers: Price your home correctly from the start. Homes that are priced well still sell quickly, even if buyers have more choices.

In any market, preparation makes a difference. Whether you’re buying or selling, knowing whether you’re in a buyers or sellers market can help you approach the process with confidence.