Real Estate Industry Updates: Week of August 18,
2025
The real estate industry this week presents a complex landscape of shifting market dynamics,
technological innovation, regulatory adjustments, and economic pressures that are
fundamentally reshaping how Americans buy and sell homes. From falling mortgage rates to
emerging proptech solutions and ongoing adjustments to commission structures, the industry is
navigating a period of significant transition.
Market Conditions and Pricing Trends
Mortgage Rates Hit 2025 Lows, But Housing Correction Spreads
Mortgage rates have reached their lowest point in 2025, with the 30-year fixed-rate mortgage
dropping to approximately 6.58% as of August 15, representing a decline of about 0.5% from
earlier in the year. This relief comes as investors grow concerned about economic conditions,
with new and revised jobs reports increasing recession likelihood.
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Housing market corrections are now affecting nearly 50% of the country. According to Zillow
data, 26.6% of for-sale listings experienced price reductions in June, with pandemic boomtowns
leading the way in price cuts. Denver leads at 38.3%, followed by Raleigh 36.4%, Dallas
35.5%, Nashville 35.5%, and Phoenix 35.5%.
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National price appreciation is decelerating significantly. The median existing home price
reached $435,300 in June 2025, representing only a 2% increase from the previous year – a
dramatic slowdown from the double-digit increases of 20212022. Eight major forecasting
organizations predict average home price appreciation of just 1.9% for 2025, with two Redfin
and Zillow) actually forecasting price declines.
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Regional Market Variations
Charlotte, NC, relevant to the user’s location, is experiencing moderate price growth with some
market cooling. The median sales price in Charlotte reached $435,000 in June 2025, up 2.4%
from the previous year, while year-to-date median prices show a 2.5% rise to $415,000.
However, inventory has surged 39% with 8,967 homes on the market compared to 6,452 in
June 2024, and homes are taking longer to sell 40 days versus 29 days).
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North Carolina statewide shows similar trends, with home prices up 1.5% year-over-year in July,
homes sold rising 1.4%, and inventory increasing 19%. The state is approaching a more
balanced market with 5.7 months of supply, nearly reaching the 6-month benchmark that signals
market equilibrium.
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Builder Confidence at Multi-Year Lows
Homebuilder confidence remains deeply pessimistic, with the NAHB/Wells Fargo Housing
Market Index dropping to 32 in August from 33 in July – the lowest level since April 2020. This
marks the 16th consecutive month in negative territory, with affordability cited as the top
challenge. Significantly, 37% of builders reported cutting prices in August, while 66% are using
sales incentives – the highest percentage in the post-COVID period.
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New Real Estate Technology Launches
AIDriven Platforms Dominate PropTech Innovation
PropTech Breakthrough Awards 2025 highlighted significant AI innovations in real estate
technology. EliseAI was named “PropTech AI Solution of the Year” for its comprehensive
conversational AI platform that automates the entire resident lifecycle from initial inquiry through
renewals and maintenance requests, handling over 95% of routine interactions.
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MRI Software introduced major AI capabilities in June 2025, including an AI agent for month
end reconciliation that can reduce reconciliation time by two-thirds, and an enhanced Ask Agora
page assistant that provides contextual insights and recommendations.
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Nakisa IWMS released its 2025.R1 product featuring AI Document Abstraction and an AI Agent
for complex variable rent calculations, allowing real estate professionals to enter lease terms in
plain English and automatically generate appropriate formulas.
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Market-Specific Technology Launches
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Propbee launched in Charlotte on August 14, 2025, offering a next-generation real estate
platform combining smart analytics with end-to-end services for both investors and
homebuyers. The platform provides real-time data analysis and offers buyer rebates up to 1% of
purchase price.
Lone Wolf Technologies launched Deal Tracker in June 2025, a visual pipeline dashboard that
provides real estate agents with complete visibility into every deal stage from warm prospects to
closed transactions, integrating seamlessly across their ecosystem.
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Partner Real Estate introduced Instant Offers Exchange IOX, allowing sellers to receive
multiple competitive cash offers within minutes without committing to a sale. The platform
generates offers in as little as three minutes with flexible closing timelines.
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MLS and Industry Platform Updates
Voiceflip presented “Ardi” to the MLS Innovator Network in August 2025, an AI-driven multi
channel assistant trained exclusively on MLS and Association-specific content, operating across
eight different channels including Slack, Teams, and WhatsApp in over 26 languages.
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Mount Street’s CreditHub won the 2025 PropTech Breakthrough “Commercial Real Estate
Asset Management of the Year” award for its cloud-native platform designed to transform loan
servicing and asset management.
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Regulatory Changes Affecting Agents and Transactions
NAR Settlement Implementation Shows Modest Impact
The landmark NAR settlement changes that took effect August 17, 2024, are showing muted
results nine months later. Despite predictions of dramatic commission reductions, buyer’s agent
commissions have barely budged, averaging 2.37% for homes sold in Q4 2024, up slightly from
2.36% in Q3.
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Key regulatory changes from the settlement include:
Prohibition of compensation offers on Multiple Listing Services MLS
Mandatory written buyer-broker agreements before property showings
Greater transparency in commission negotiations
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Higher-priced homes are seeing some commission compression. For homes priced
$500,000$999,999, buyer’s agent commissions dropped from 2.42% in Q1 2023 to 2.29% in
Q1 2025. For homes above $1 million, commissions fell from 2.36% to 2.17%.
Continued Market Adaptation
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Sellers still predominantly offer buyer agent compensation despite the rule changes. Summer
Goralik, a real estate compliance advisor, noted: “If the goal was to stop sellers from financing
buyers’ agents, that has utterly failed. The situation is continuing as before, just presented in a
different manner”.
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Flat-fee brokerages are gaining traction as consumers become more aware of alternatives.
ShopProp Realty reported representing a buyer who purchased a $10.2 million home, receiving a
$247,000 rebate instead of paying the traditional $255,000 commission, paying only a $7,995
flat fee.
Enhanced Landlord Regulations in 2025
New tenant protection laws have taken effect, including stricter eviction procedures, longer
notice periods (up to 90 days for lease non-renewals in some states), and enhanced
transparency requirements for landlords. Many jurisdictions now require itemized receipts for
security deposit deductions and detailed justifications for lease changes.
Economic Factors Driving Buyer/Seller Decisions
Federal Reserve Policy and Inflation Concerns
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The Federal Reserve held rates unchanged for the fifth consecutive meeting on July 2930,
2025, maintaining the federal funds rate at 4.254.5%. However, two Fed officials dissented,
favoring a quarter-point cut, indicating growing pressure for rate reductions.
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Inflation remains a critical factor, with the core Producer Price Index rising 3.3% annually in
July, causing market concerns about guaranteed rate cuts. Fed Chair Jerome Powell has warned
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that lowering interest rates may not necessarily lead to lower housing costs due to the
underlying supply shortage.
Housing costs continue as the “jumbo heavyweight of inflation,” according to NAR Chief
Economist Lawrence Yun. The shelter category increased 0.2% month-over-month in July and
3.7% annually, remaining a primary contributor to overall inflation.
Buyer and Seller Behavior Shifts
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Buyers are increasingly waiting on the sidelines, with Fannie Mae’s Home Purchase Sentiment
Index showing 77% of consumers believe now is a bad time to buy a home. However, purchase
applications have shown 22 consecutive weeks of year-over-year growth, suggesting some
underlying demand resilience.
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Sellers are increasingly reluctant to list, with new listings growing only 1.5% year-over-year in
early August compared to 5% the previous week. This “game of chicken” reflects sellers’
unwillingness to accept lower prices while buyers wait for better affordability conditions.
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Inventory dynamics are creating buyer opportunities. National inventory reached over 1.1
million homes for the third consecutive month, with 92 consecutive weeks of annual gains.
However, homes are taking longer to sell, with the typical home remaining unsold six days longer
than a year ago.
Regional Economic Variations
Charlotte market fundamentals show resilience despite challenges, with closed sales up 8.2%
in June 2025 compared to the previous year, though inventory has increased 39% and days on
market have risen 37.9%. The region continues to attract inbound migration, supporting
underlying demand.
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Economic uncertainty from trade policy continues to weigh on consumer confidence, with
earlier tariff actions contributing to heightened uncertainty and contract cancellations in some
markets.
Demographic trends are shaping demand, with Millennials in their prime homebuying years
seeking larger homes for growing families, while Gen Z enters as first-time buyers focused on
affordability and remote work capabilities. Multigenerational living trends are driving demand for
homes with additional space.
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The real estate industry this week reflects a market in transition, where technological innovation
is accelerating, regulatory changes are gradually taking effect, and economic factors are
creating both challenges and opportunities for market participants. While mortgage rate relief
provides some optimism, the fundamental issues of affordability and supply constraints continue
to shape market dynamics across the country.
