Residential Brokers & Property Managers NAICS 531311, 531210

Dec 20, 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 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.
• 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."

• U.S. renters are benefiting from a tenant-friendly market, with slowing rent growth, generous concessions, and record leasing incentives, according to The Wall Street Journal. A surge in apartment construction, delayed by supply-chain issues, has led to a glut of new units, especially in Sunbelt and Mountain West. National average rent fell 0.3% in September, the steepest drop for that month in over 15 years, according to data firm CoStar. Young renters face job market challenges, with unemployment for ages 20 to 24 at 9.2%, prompting many to delay moving out or seek roommates. Landlords are offering months of free rent, gift cards and other perks to fill vacancies. Some analysts now expect rent growth to remain subdued through 2027, as more units come online and demand softens.
• Multifamily developer confidence improved in the third quarter of 2025 but remained in negative territory, according to the National Association of Home Builders’ (NAHB) latest Multifamily Market Survey. The Multifamily Production Index (MPI) rose six points in Q3 2025 to 46 compared to the third quarter of 2024. The Multifamily Occupancy Index (MOI) decreased by one point to 74 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. While the MPI index indicates weakness in the multifamily construction market, the softness is mostly concentrated in mid-to-high-rise and condominium development, while developers of low-rise and subsidized rental properties are more optimistic.