Published: August, 7, 2025| Time to Read: 5 minutes | Word Count: 0
Welcome to our August 2025 real estate update! In this edition, we're diving into the latest trends from July across the housing market, with insights on price fluctuations, inventory changes, and regional updates. Whether you're buying, selling, or just staying informed, we've got the details you need to navigate the evolving market and make smart decisions.
August Financial Market News
- The Conference Board's Consumer Confidence Index increased to 97.2 in July, surpassing expectations. This improvement was attributed to a slight decline in inflation concerns and increased optimism about short-term income and business conditions.
- The U.S. economy rebounded with a 3.0% annualized growth rate in Q2 2025, recovering from a 0.5% contraction in Q1. This marks a significant turnaround in economic performance.
- President Donald Trump plans to announce replacements for two key positions: one at the Federal Reserve, following the resignation of Governor Adriana Kugler, and another at the Bureau of Labor Statistics, after the firing of Commissioner Erika McEntarfer.
- The July jobs report revealed weak job growth, with only 73,000 jobs added and unemployment ticking up to 4.2% from 4.1% in June.
August National Housing Market News
- In July, all 50 of the largest markets recorded year-over-year inventory growth, with the sharpest increases seen in Las Vegas, NV (+65.7%), Washington, DC (+56.5%), and Raleigh, NC (+45.4%).
- The inventory of homes for sale rose 24.8% year-over-year in July, marking the 21st consecutive month of inventory growth and the third consecutive month with over one million active listings.
- Nearly one-third of the 100 largest U.S. housing markets are now seeing year-over-year home price declines of at least 1%, as June marks the slowest annual growth in two years—just +1.3%, down from +1.6% in May.
- Existing home sales are projected to hit four million in 2025, down 1.5% from 2024, as the spring boost faded, but buyer interest hints at possible late-summer momentum.
- The new One Big Beautiful Bill Act raises the State and Local Tax (SALT) deduction cap to $40K, providing tax relief for homeowners in high-tax states (phases back to $10,000 after 2030).
- Fannie Mae and Freddie Mac’s new policy could help renters become homeowners. By using VantageScore, which factors in rent payments, first-time buyers with no traditional credit history now have a chance to qualify for a mortgage.
- Homes spent a median of 58 days on the market in July, five more than June and seven more than July 2024.
- American buyers are investing in Caribbean real estate for second passports, with demand up 53% in Q1 2025. Countries like Antigua and St. Kitts offer citizenship through property purchases starting at $300,000.
August 2025 National Housing Trends
- Nearly half of U.S. mortgaged homes are now “equity-rich,” meaning the loan balance is no more than half of the home’s value—46.2% in Q1 2025, down slightly from 47.7% at the end of 2024.
- Luxury buyers are shifting focus to smaller, inland markets like St. Louis, Santa Fe, and Salt Lake City, drawn by a mix of livability, economic stability, and more affordable price points.
- Home prices are still climbing, but only by about 2.5% this year—a slower pace than 2024 as inventory rises and more markets see price softening.
- More homes on the market means less competition and more negotiating room for buyers, though some sellers are choosing to delist rather than drop prices (delistings jumped 47% in the past year).
- Inventory has now increased for 20 consecutive months, up 28.9% year-over-year, giving buyers more options and sellers more competition.
- The national median list price for homes in July was $439,450, up 0.5% from July 2024, consistent with 2023–24 levels.
- Price cuts were reported on 20.6% of listings in July, a slight decline from June, marking the first fall in price cuts in 2025.
August Regional Housing Market News
Curious about how the housing market is shifting in your area? Here’s a closer look at the latest trends across different regions of the U.S. From price changes to inventory updates, we’ve got the insights you need to stay ahead in your local market.
August 2025 Northeast Region Housing News:
- In the Northeast, housing starts jumped 73.3% month-over-month in June and 52.9% year-over-year, driven entirely by multifamily builds.
- Vermont leads the nation in equity, with nearly 86% of mortgages considered equity-rich, followed by New Hampshire (60.5%) and Rhode Island (59.8%).
- New York led all tracked metros with 7.4% year-over-year home price growth, showing that demand in the region is holding strong despite higher borrowing costs.
- In the Northeast, sellers are increasingly removing properties from the market rather than reducing prices, contributing to tighter inventory.
August 2025 Midwest Region Housing News:
- St. Louis tops the latest Wall Street Journal/Realtor.com Luxury Housing Market Ranking, offering luxury buyers strong value with a 90th percentile price of $697,000, about half the national luxury benchmark.
- Midwestern shoppers are the most likely to stay put. Just 54% of searches left their metro, the lowest share of any U.S. region.
- Approximately 15.4% of listings in the Midwest had price reductions in July, reflecting a modest increase in seller concessions.
- Home prices varied across the Midwest in July, with some metros experiencing notable growth:
- Cincinnati, OH saw a 9.7% year-over-year increase in median home prices.
- Grand Rapids, MI saw a 14% rise in home prices.
- In contrast, Chicago, IL and Detroit, MI saw modest declines of 4.4% and no change, respectively.
- Lansing, MI's affordable housing and strong local economy have driven a 13% rise in home prices, with median listings at $282,450. Homes are selling quickly, averaging just 31 days on the market, as demand continues to outpace the limited supply.
August 2025 Texas Housing News:
- Starting September 1, 2025, a new Texas law (SB 840) will allow developers to convert existing commercial land (office, retail, warehouse) into multifamily or mixed-use housing without rezoning, aiming to ease the housing shortage.
- The median sales price for single-family homes in Dallas reached $525,000 in July, up from $510,000 last year, indicating that home values are holding steady despite slower sales.
- Houston stands out as a retention success story. Locals are slightly less likely to look elsewhere (down four points), likely thanks to its relative affordability and strong job base.
- Nearly 100,000 Californians relocated to Texas in 2023, with Harris County seeing significant migration due to housing costs being 63% lower than in California. Former Los Angeles, CA residents, for example, saw home prices drop by 82%, making Texas an appealing destination for affordable living.
August 2025 Southeast Region Housing News:
- Renters paying $2,500–$3,000 a month in Nashville, TN could finally see those payments help their credit scores under the FHFA’s new policy that factors rent history into mortgage applications.
- Tampa, FL saw the steepest home price drop among tracked cities, down 2.4% year-over-year, as more listings and affordability concerns weighed on the market.
- The median home price in Atlanta, GA, dropped 8.6% to $397,000, with homes staying on the market longer (51 days). Active listings surged 10.2%, signaling a more balanced market.
- Davidson, NC has become a luxury real estate hotspot, with nearly a third of current listings exceeding $1M —up from just 8.4% pre-pandemic.
August 2025 Southwest Region Housing News:
- Colorado Springs, CO hit a record median home price of $500,000 in June, a symbolic “half a million” mark that’s making affordability even tougher for first-time buyers, despite the highest number of homes for sale in the region since 2014.
- In Albuquerque, NM abandoned Route 66 motels, like the Adobe Manor, are being renovated into affordable housing for working-class families and immigrants.
- Investor interest remains strong in certain Southwest metros. In Salt Lake City, UT, institutional investors continue to purchase homes at a steady rate, driven by factors like population growth and rental income potential.
- Santa Fe, NM, and Prescott, AZ, are attracting luxury second-home buyers with scenic beauty, lower taxes, and a tranquil lifestyle. Prescott offers an appealing option for retirees, while Santa Fe’s artsy culture and natural beauty draw those seeking a serene escape, with luxury homes priced around $2.7M.
August 2025 Pacific Northwest Housing News:
- In July, Oregon passed laws to allow lot splits for starter homes and give the state the power to override local zoning. This move aims to streamline housing development and address the growing shortage of affordable homes by standardizing zoning rules across cities.
- In Boise, ID, inventory surged by 56.3% from June to July, reaching 1,060 active listings. The average sold price in Ada County was $580,000, up nearly 2% from the previous year.
- As of July 2025, the median home sale price in Seattle, WA was approximately $854,669, reflecting a 2.5% increase compared to the same month in 2024.
- A new law in Washington encourages cities to build affordable housing near transit hubs, aiming to increase housing supply, reduce transportation costs, and promote sustainable urban development.
August 2025 California Housing News:
- Sonoma County homes are taking longer to sell, giving buyers more room to negotiate, with many homes selling 3–6% below asking once they sit for over a month.
- San Jose, CA, tops the list for out-of-market interest, with nearly 94% of local searches focused on other areas—most within California, but many to Nevada as well.
- In July, Northern California saw the strongest sales growth (+13.7%), while Southern California had modest growth (+1.9%). The Central Valley was the only region with a sales decline (-0.8%).
- Sales in California’s housing market are expected to increase by 10.5% to 304,400 units in 2025, driven by improved inventory and lower mortgage rates.
Be sure to check back next month for our updated insights and trends to keep you informed on the latest developments. In the meantime, if you’re thinking about buying, selling, or refinancing, our Home Loan Specialists are always ready to help you make the right move.
Frequently Asked Questions
Check our FAQs for responses to our most popular questions about our monthly housing updates.
