May 2025 Real Estate Market Recap: What Buyers & Sellers Need to Know Nationwide

As we head into May of 2025, the national real estate market continues to evolve offering both opportunities and challenges for buyers and sellers alike. With interest rates stabilizing and inventory slowly creeping upward, many are asking: Is now a good time to make a move?

Let’s break down what’s happening on a national level—and what it means for you.

🔍 National Real Estate Trends to Watch

Across the country, we’re seeing a few key shifts that are shaping the housing market this summer:

1. Inventory Is Gradually Rising

After years of tight supply, new listings are finally starting to increase in many markets—particularly in suburban areas and mid-sized cities. While inventory still hasn’t reached pre-pandemic levels, buyers are seeing more options than they did this time last year.

2. Home Prices Are Holding Strong

Despite some slight softening in specific regions, national home prices remain stable overall. High demand for updated, move-in-ready homes continues to push values upward—especially in desirable neighborhoods and school districts.

3. New Construction Is on the Rise

Builders are stepping up to meet demand, and many are offering attractive incentives like rate buydowns, design upgrades, and closing cost contributions to draw in buyers. If you haven’t explored new builds, now might be the time.

💸 Where Are Interest Rates Now?

As of May 2025, the average 30-year fixed mortgage rate sits between 6.6% and 6.8%. While that’s higher than the record lows of 2020–2021, it’s relatively stable—and there are whispers that the Fed may begin trimming rates later this year if inflation continues to cool.

The takeaway? Rates aren’t skyrocketing, but they’re not dropping dramatically anytime soon either. If you’re waiting for 4% interest to come back, you could be waiting a long time.

What Buyers Should Know?

If you’re in the market to buy this summer, here’s what you should keep in mind:

• Affordability is tight, but there are creative ways to make it work. Think: lender credits, rate buydowns, and adjustable-rate mortgages.

• Motivated buyers are winning: With fewer bidding wars than past years, well-prepared buyers are landing homes at fair prices.

• The cost of waiting could outweigh the cost of buying now, especially if prices continue rising.

What Sellers Should Know?

If you’re considering selling, you’re still in a favorable position—if you play your cards right:

• Price and presentation are everything. Today’s buyers are budget-conscious and selective. Homes that are clean, staged, and priced correctly are moving quickly.

• Move-up sellers are making a comeback. Many are using their equity to transition into their “forever home,” with help from rate strategies to offset higher borrowing costs.

• Overpricing = missed opportunity. Buyers are informed and cautious. Set your price based on current comps—not wishful thinking.

The Bottom Line

The national real estate market well into Q2 is balanced, strategic, and full of potential—for those who are informed and prepared. Whether you're buying your first home, selling to upgrade, or investing in your next property, the right guidance and market insight can make all the difference.

📍Have questions about your local market? Want to talk strategy for your next move? Let’s connect.