The U.S. housing market is finally catching its breath. After years of price surges and bidding wars, November 2025 brings balance — not collapse, but recalibration. Prices remain resilient while buyers quietly regain power through rising inventory and longer listing times.
Price Growth Softens but Stays PositiveHome prices rose in 77% of U.S. metros during the third quarter, reaching a national median of $426,800, up 1.7% year-over-year. Yet this average conceals a split: the Northeast surged 6%, while the West edged down 0.1%. The Midwest and South are treading water.
Active listings jumped 15.1%, and homes now sit 63 days on the market — a signal that sellers can no longer dictate terms. For buyers, patience is leverage. Phoenix, for instance, has flat prices and rising inventory, showing a local pivot toward negotiation-friendly deals.
Mortgage Rates Ease but Affordability Remains ElusiveAfter brushing 7% earlier this year, the 30-year fixed rate now hovers around 6.2%. The relief is psychological more than practical. Affordability remains squeezed by record-high down payments — 19% overall, and 10% for first-time buyers, the highest since 1989.
Tighter credit standards and higher living costs are pushing younger buyers to the sidelines. All-cash deals now account for 26% of sales, reflecting both investor dominance and a wealth gap between generations.
Proptech’s Big Leap: AI Becomes a Realtor’s Co-PilotThe week’s biggest story in real estate tech is Zillow Pro, a unified AI-powered suite combining Follow Up Boss, My Agent, and Agent Profiles. It promises to streamline communication and market insights for agents, with nationwide rollout expected mid-2026.
Zillow also became the first real estate app integrated with ChatGPT, allowing property searches through plain-language prompts — a milestone for how consumers will soon shop for homes.
Meanwhile, La Rosa Holdings unveiled JAEME AI 2.0 and blockchain payment integration, and AppFolio launched a data-driven Real Estate Performance Management platform for landlords. Proptech is no longer experimental; it’s operational.
New Rules, New RealitiesThe NAR settlement continues reshaping how agents work. Buyer-broker agreements are now mandatory before property showings, with explicit compensation terms. Commissions are technically negotiable, but in practice, the average buyer-agent fee only dipped slightly — from 2.45% to 2.37%.
Regulatory updates also extend beyond commissions. New TCPA rules (effective January 2025) require individual written consent for automated messages, and some states like Missouri now mandate written agency agreements for all brokerage services. Compliance is no longer optional — it’s a branding issue.
Economics of Emotion: The Buyer’s DilemmaDespite cost pressures, homeownership still carries emotional weight. 87% of buyers are happy they purchased, though 65% admit financial regrets, mostly around high rates and stretched budgets. The typical buyer is now 40 years old — a record high — while sellers average 64, a demographic shift that keeps boomers in control of supply.
The multifamily sector offers a small bright spot. Effective rents rose 1.1% over the past year, with vacancy steady at 6.5%. Investment volume is up 13%, suggesting investors still see opportunity where individuals hesitate.
The Bottom LineNovember’s data tells a story of normalization. Inflation is cooling, the Fed is cautious, and the market is moving from adrenaline to analysis. Real estate professionals who embrace AI, master new regulations, and manage client expectations with clarity will define success in 2026.
