US Real Estate Sector NAICS 531

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 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 agents value promoting sustainability but face challenges due to the limited availability of green building data in commercial information exchange (CIE) databases, according to a recent report by the National Association of Realtors (NAR) and reporting by Facilities Dive. The survey showed that just 13% of commercial-focused NAR members reported access to green features data in their CIE. While 54% of those with access to green building data utilize it, most agents rarely work with sustainable buildings, and only 19% do so annually. Still, 55% see value in highlighting energy-efficient or eco-friendly features, although few believe that certifications boost valuations or speed up sales. Approximately 58% of agents reported that green building features are what tenants most often inquire about, yet buyers and lessees remain focused on hard costs. The most sought-after sustainable elements include lower utility expenses, improved indoor air quality, efficient windows and doors, resilience against extreme weather conditions, and enhanced lighting. The findings underscore both growing interest in sustainability and structural barriers to fully marketing green properties.

• 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.
• Retail landlords are entering 2026 with cautious optimism after a strong third quarter, reversing earlier declines tied to bankruptcies, tariffs, and weak sentiment, according to The Wall Street Journal. In Q3, retailers entered 5.5 million more square feet than they vacated, according to data firm CoStar. Discount chains such as Dollar General, Aldi, and 7-Eleven drove demand, while construction remained historically low, keeping the Q3 vacancy rate at 4.3%. Although closures from bankruptcies pushed store shutdowns up 11% in the first three quarters of 2025 compared to the same period in 2024, landlords are finding higher-paying tenants. Online sales growth and flat inflation-adjusted retail spending have slowed rent gains; however, analysts predict that consumer resilience will remain if the labor market remains steady.