The real estate industry continues to navigate significant shifts in market dynamics, technological innovation, regulatory compliance, and economic pressures. This week brings a mix of cautious optimism and persistent challenges as stakeholders adapt to the evolving landscape.
Key findings reveal that while inventory is increasing and mortgage rates have slightly declined to 10-month lows of 6.58%, buyer demand remains sluggish due to affordability concerns and economic uncertainty.
Market Conditions and Pricing Trends
National Housing Market Stabilization
- Home price appreciation has slowed to 2.5% annually, below the 2.7% inflation rate—the first time in years that price growth has fallen behind inflation.
- The national median list price for homes in July was $439,450, up just 0.5% from July 2024.
- Inventory levels have now increased for 20 consecutive months, up 28.9% year-over-year, the longest streak since before the pandemic.
- New listings growth slowed to just 1.5% annually during early August, showing seller reluctance.
- Median listing prices have remained flat for two weeks, with 20.6% of listings reporting price cuts.
- Zillow’s forecast projects only 0.4% growth nationally from July 2025–July 2026.
Regional Highlights:
- Atlantic City, NJ is projected to lead with +4.3% appreciation.
- Houma, LA may see the steepest decline (–8.6%).
- The Bay Area shows a “two-market” split: Silicon Valley remains competitive, while East Bay and condo markets are cooling, with condos taking 31–35 days to sell.
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New Real Estate Technology Launches
AI-Powered Search and Engagement
- Inside Real Estate launched HomeSearch AI on August 17, integrating natural language search, image recognition, and AI to deliver personalized property suggestions and lead reactivation.
- Lone Wolf Technologies unveiled Foundation Dashboard on August 21, a customizable agent homepage pulling data from multiple sources.
PropTech Awards and Recognition
- EliseAI won Proptech AI Solution of the Year for its conversational AI platform.
- Mount Street’s CreditHub earned Commercial Real Estate Asset Management of the Year.
Market Expansion & Integrations
- Rayse partnered with Stellar MLS, following earlier deals with CRMLS and IRES MLS, helping agents track and showcase time spent on transaction tasks.
- Buildout released Rethink+, integrating property/ownership data directly into CRM for streamlined prospecting.
Regulatory Changes Affecting Agents and Transactions
NAR Commission Settlement Implementation
- Nearly one year later, written buyer-agent agreements before showings and prohibition of commission offers on MLS remain the biggest changes.
- Commissions have stayed stable at ~2.37%, though listing appointments are now longer due to increased negotiation and education.
Federal Housing Finance Agency (FHFA) Updates
- Issued 2025–2027 housing goals for Fannie Mae and Freddie Mac, maintaining the 61% low-income multifamily goal while adjusting others.
State-Level Changes
- Florida amended the Live Local Act, expanding land use mandates, reducing parking requirements, and streamlining approvals.
- Texas enacted SB 840 (effective Sept 1, 2025), allowing commercial-to-residential conversions without rezoning.
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Economic Factors Driving Buyer/Seller Decisions
Mortgage Rate Environment
- 30-year fixed mortgage rates hit 6.58% on August 21 (10-month low).
- Fed expected to cut rates by 0.25% in September.
- A 0.3% drop in rates = ~$1,000 annual savings on a median-priced home loan.
Affordability & Buying Power
- Buying power has decreased by $30,000 since 2019, despite 15.7% wage growth.
- Home prices are still 50% higher than pre-pandemic, leaving affordability stretched.
- In cities like Cleveland, buying power has improved, with household incomes rising to $79,000.
Economic Uncertainty & Inflation
- Ongoing trade policy tensions and job concerns reduce buyer confidence.
- Inflation accelerated to 2.8% in July 2025, with core inflation at 3%.
- Despite affordability issues, strong home equity and stock market gains are supporting price stability.
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Conclusion
This week’s updates underscore the real estate industry’s continued adaptation to structural commission changes, new AI-powered tools, and economic headwinds. While inventory growth and slightly lower mortgage rates provide some relief, affordability challenges and uncertainty remain significant barriers.
The combination of regulatory clarity, AI adoption, and localized market resilience suggests a foundation for gradual, sustainable growth—even as the broader national picture stays cautious.
