The U.S. real estate market in September 2025 is showing a mix of resilience and cautious optimism, with notable trends across residential, industrial, and mortgage sectors.
Home Prices See Modest Decline
According to recent housing market predictions, home prices are expected to drop by approximately 0.9% by the end of 2025. This slight decrease follows several years of rapid appreciation and reflects a market that is gradually stabilizing after the post-pandemic boom. Some regions are experiencing price declines, while others continue to see modest growth, highlighting the importance of local market dynamics.
Inventory and Buyer Activity
Late September is being touted by experts as one of the best times to buy a home this year. After the summer rush, prices tend to dip, and more listings become available, resulting in less competition for buyers. However, the overall market remains “stuck,” with both buyers and sellers hesitant to make moves, possibly waiting for more favorable conditions in 2026.
Mortgage Rates Hit 10-Month Low
Mortgage rates have provided a glimmer of hope for prospective buyers. As of early September, 30-year fixed mortgage rates are hovering around 6.5%, marking a 10-month low. This drop could encourage more buyers to enter the market, though affordability remains a concern in many areas.
Industrial Real Estate Remains Strong
While the residential market cools, industrial real estate continues to demonstrate resilience. Steady pricing, rent growth, and ongoing investor optimism are driving growth in this sector, even as other parts of the market face headwinds.
Policy and Affordability Concerns
In response to ongoing affordability challenges, there are discussions at the federal level about declaring a national housing emergency. Policymakers are considering emergency measures to address the crisis, signaling that housing affordability will remain a key issue through the end of the year.
Regional Highlights
- In San Francisco, the median home sales price grew by just 1.97%, a significant slowdown compared to previous years.
- Markets like Irvine, CA, and other major metros are seeing inventory surges and a rise in months’ supply, giving buyers more options.
Outlook
Experts predict that the housing market may remain in a holding pattern until 2026, with both buyers and sellers waiting for clearer signals. In the meantime, lower mortgage rates and increased inventory could provide opportunities for those ready to make a move this fall.
