Housing market fall surprise: Buyers are back, and Zillow says the momentum isn’t over yet
Zillow September 2025 Housing Market The report reveals an unexpected increase in activity during what is typically a slow season for real estate. Dip in Mortgage rates– coupled with a strong stock market – sparked renewed energy among buyers and sellers alike after a slow August.
New listings rose 3% year-on-year in September, reversing a 3% decline in the previous month. On a monthly basis, listings fell 2%, exceeding the historical average of 9% before the fall.
Total inventory fell just 1% from August to September, but is 14% higher than year-ago levels.
The report also shows a shift in the balance of power: 15 of the country’s 50 largest metros are now buyers’ markets, compared to six last year.
The Zillow Heat Index identifies the best buyer-friendly metro areas:
- Miami, Florida
- New Orleans, Louisiana
- Austin, Texas
- Jacksonville, Florida
- Indianapolis, Indiana
In contrast, seller-oriented markets remain hot due to limited housing supply and restrictive land use laws.
Top selling markets identified by Zillow include:
- Buffalo, New York
- Hartford, Connecticut
- San Jose, California
- San Francisco, California
- New York, New York
Recent nationwide data reinforces Zillow’s message of flexibility. according to Freddie MacMeanwhile, the average interest rate on a thirty-year fixed mortgage fell to about 6.19%, the lowest level in 2025. Meanwhile, existing home sales rose to a seven-month high in September as affordability began to improve. Up to 15% of pending sales It was canceled amid nervous buyersRedfin numbers show sellers are adjusting their expectations, leading to price cuts and slower deals being accepted.
Together, these trends indicate that the housing market is improving rather than overheating. Zillow economists expect this “unusually active” holiday decline to continue, supported by easing borrowing costs and pent-up demand. For buyers who have been waiting for a window, this may be the first real opening in nearly three years.
For this story, luck Use generative AI to help with the rough draft. An editor verified the accuracy of the information before publication.
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