Escrow Agencies and Other Real Estate Services NAICS 531390

Dec 21, 2025 - Overpricing Causes Homes to Linger on the Market

• Elevated mortgage rates and economic uncertainty are forcing many home sellers to cut prices as overpriced listings linger on the market, according to The Wall Street Journal. In October, more than 20% of active listings had a price reduction, nearly double the share seen during the pandemic boom, according to Realtor.com. Homes priced correctly from the start tend to sell faster and closer to the asking price, while those requiring price cuts often sit on the market five times longer. By October 2025, 57% of homes sold had undergone at least one price cut, compared with 47% between 2020 and 2024, with an average reduction of 3.7%, according to the National Association of Realtors. Buyers now enjoy more leverage, negotiating discounts and inspections, while sellers in oversupplied markets such as Southern Florida and Texas face higher delisting rates. Experts advise pricing based on recent neighborhood sales to avoid prolonged listings and deeper cuts later.
• Commercial real estate remains out of favor with investors, who have been burned by falling property values, despite the Federal Reserve's repeated rate cuts, according to The Wall Street Journal. Institutional buyers, once the backbone of the market, have reduced their allocations as returns have lagged far behind those of equities, infrastructure, and commodities. US property values remain 17% lower than their 2022 peaks, with offices and apartments hit the hardest, according to Green Street. While opportunistic firms like RXR and Blackstone are acquiring assets at a discount, many investors are hesitant to invest in refurbishments. Amid the demise of cheap debt and the assumption of rising property values, income generation from property is becoming increasingly important, shifting the focus to assets such as senior housing, retail, and high-quality offices. With construction costs up more than 40% since 2020, the limited new supply could drive rent growth.

• Sales of existing US homes increased by 0.5% in November from October but were down 1.2% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "Existing-home sales increased for the third straight month due to lower mortgage rates this autumn," said NAR Chief Economist Lawrence Yun. "However, inventory growth is beginning to stall. With distressed property sales at historic lows and housing wealth at an all-time high, homeowners are in no rush to list their properties during the winter months."
• Compass’s $1.6 billion acquisition of Anywhere Real Estate will create the largest U.S. brokerage by agent count, expanding its network to over 200,000 agents, according to The Wall Street Journal. The merger strengthens Compass’s push for private listings; homes that are marketed exclusively to its agents and clients before public release. While Compass argues this gives sellers more control and privacy, critics warn it reduces market transparency. The deal, expected to close in 2026, reflects broader industry consolidation amid sluggish home sales and declining revenues. Compass and Anywhere (holdings include the Century 21, Sotheby's, and Coldwell Banker brokerage brands) have a combined market share of 18%. However, real estate consulting firm RTC Consulting estimates that in luxury markets like New York and San Francisco, the combined share could exceed 40%, raising potential regulatory concerns.