Lower mortgage rates extend housing momentum into fall
Buyers and sellers remained unseasonably active, bouncing back after an August lull
- The number of buyers markets more than doubled, rising from six to 15 over the past year.
- New listings from sellers rose 3% annually, emerging from a 3% annual decline in August.
- Buyers have 14% more options to choose from compared to a year ago.
SEATTLE, Oct. 20, 2025 /PRNewswire/ -- A September dip in mortgage rates paired with a stock market bump gave a boost to what is traditionally the start of the slow season in real estate. The latest market report1 from Zillow® shows activity from sellers and buyers is unseasonably resilient after a lackluster August.
"September's market showed surprising stamina," said Kara Ng, senior economist at Zillow. "Typically, both buyers and sellers step back this time of year, but lower mortgage rates and stock market highs provided a second wind heading into fall. This time of year can be a sweet spot for buyers. There's often less competition than in the spring and more time to make sure the home's a perfect fit. Sellers who stay in the market into the holidays may be more open to negotiating."
Unexpected showing of sellers in September
More homeowners decided to list their properties in September after a particularly slow August. New listings, which were down 3% year over year in August, rebounded to show 3% annual growth in September. Typically, new listings drop off sharply heading into fall — they've fallen an average of 9% in September over the past seven years — making this year's mere 2% drop exceptional.
Buyers also remained active in September. Pending sales fell 5.4% from August to September, a smaller drop than is typical for this time of year and less than half the usual monthly decline in September.
Total inventory fell 1% from August to September, but is up 14% from last year.
Buyer's markets more than double as competition eases
A year ago, six of the nation's 50 largest metros were buyer's markets; this September, buyers have the edge in 15 metros. Zillow's market heat index shows the strongest buyer's markets are Miami, New Orleans, Austin, Jacksonville and Indianapolis. That's due, in large part, to a surge of new construction in most of those areas in recent years.
The hottest markets for sellers are in the Northeast and Bay Area: Buffalo, Hartford, San Jose, San Francisco and New York — places where builders face some of the most stringent land use restrictions.
Fall outlook for buyers & sellers
Fall can be a sweet spot for buyers, with lower competition than in the spring and more homes for sale than later in the year. Sellers who don't sell by the holidays may be more open to negotiating concessions on price, closing costs and mortgage rate buydowns.
Sellers, meanwhile, should present their listings in the best possible light to help them stand out to buyers. Home sellers in a buyers or neutral market should be prepared for buyers asking for concessions on closing costs and rate buydowns.
Metro Area* | Zillow Home Value Index (ZHVI) | ZHVI Year over Year (YoY) | Share of Listings With a Price Cut | Market Favors (Zillow Market Heat Index) | Inventory Change YoY | New Listings Change YoY | New Listings Change Month over Month |
United States | $364,891 | 0.0 % | 26.2 % | Neutral | 14.0 % | 3.3 % | -2.0 % |
New York, NY | $712,114 | 2.8 % | 16.4 % | Strong Seller | 7.6 % | 4.8 % | 24.1 % |
Los Angeles, CA | $948,924 | -1.3 % | 23.0 % | Seller | 18.5 % | -4.9 % | -2.9 % |
Chicago, IL | $342,600 | 3.4 % | 29.4 % | Seller | -2.5 % | 0.2 % | -0.8 % |
Dallas, TX | $363,788 | -4.1 % | 32.8 % | Neutral | 15.6 % | -3.1 % | -9.5 % |
Houston, TX | $306,359 | -2.2 % | 28.7 % | Buyer | 25.0 % | -2.5 % | -10.6 % |
Washington, DC | $576,227 | 0.3 % | 29.3 % | Seller | 30.5 % | 7.7 % | 20.2 % |
Philadelphia, PA | $381,306 | 2.8 % | 26.7 % | Neutral | 10.4 % | 6.6 % | 11.2 % |
Miami, FL | $471,301 | -5.0 % | 20.1 % | Buyer | 13.6 % | -7.9 % | 3.3 % |
Atlanta, GA | $381,717 | -3.0 % | 29.7 % | Buyer | 18.4 % | -1.7 % | -5.9 % |
Boston, MA | $724,620 | 1.0 % | 24.4 % | Seller | 17.8 % | 8.5 % | 62.8 % |
Phoenix, AZ | $446,616 | -3.5 % | 31.3 % | Neutral | 16.2 % | 1.5 % | 12.6 % |
San Francisco, CA | $1,102,769 | -3.5 % | 20.8 % | Strong Seller | 8.8 % | 0.2 % | 35.8 % |
Riverside, CA | $579,795 | -2.6 % | 22.8 % | Seller | 15.7 % | -4.0 % | -2.1 % |
Detroit, MI | $263,008 | 3.3 % | 28.2 % | Buyer | 11.7 % | 5.2 % | -9.1 % |
Seattle, WA | $744,272 | -1.1 % | 31.7 % | Neutral | 20.7 % | 3.6 % | 14.5 % |
Minneapolis, MN | $384,177 | 2.0 % | 29.2 % | Seller | 7.0 % | 3.1 % | -1.7 % |
San Diego, CA | $917,590 | -2.8 % | 28.0 % | Seller | 19.6 % | -6.6 % | -11.5 % |
Tampa, FL | $357,862 | -6.4 % | 31.1 % | Buyer | 13.1 % | 4.7 % | -4.4 % |
Denver, CO | $572,214 | -3.0 % | 36.0 % | Neutral | 15.8 % | -4.4 % | 3.0 % |
Baltimore, MD | $397,496 | 1.6 % | 29.4 % | Seller | 22.1 % | 10.0 % | 1.5 % |
St. Louis, MO | $267,715 | 2.3 % | 28.6 % | Seller | 7.1 % | 5.4 % | 0.9 % |
Orlando, FL | $386,342 | -4.7 % | 28.0 % | Neutral | 15.4 % | -4.6 % | -6.0 % |
Charlotte, NC | $386,142 | -0.7 % | 29.3 % | Buyer | 20.2 % | 7.0 % | -1.1 % |
San Antonio, TX | $279,011 | -3.1 % | 29.6 % | Buyer | 11.8 % | 0.0 % | -7.7 % |
Portland, OR | $545,908 | -1.1 % | 31.4 % | Neutral | 11.9 % | -3.5 % | -9.6 % |
Sacramento, CA | $575,319 | -2.5 % | 28.6 % | Seller | 13.4 % | -6.9 % | -9.2 % |
Pittsburgh, PA | $225,624 | 1.8 % | 31.1 % | Buyer | 8.8 % | 8.1 % | -0.5 % |
Cincinnati, OH | $300,755 | 2.9 % | 31.8 % | Neutral | 16.5 % | 10.6 % | -5.4 % |
Austin, TX | $428,956 | -6.0 % | 29.5 % | Buyer | 11.2 % | -3.0 % | -10.5 % |
Las Vegas, NV | $430,992 | -1.2 % | 30.0 % | Neutral | 27.8 % | -7.9 % | -9.5 % |
Kansas City, MO | $317,274 | 2.6 % | 32.1 % | Neutral | 13.4 % | 4.9 % | -1.1 % |
Columbus, OH | $324,608 | 1.5 % | 34.2 % | Neutral | 18.2 % | 1.9 % | -12.2 % |
Indianapolis, IN | $288,729 | 1.5 % | 36.4 % | Buyer | 18.2 % | 11.4 % | -3.0 % |
Cleveland, OH | $244,289 | 4.6 % | 27.1 % | Seller | 11.7 % | 8.7 % | -2.3 % |
San Jose, CA | $1,563,966 | -1.7 % | 19.6 % | Strong Seller | 7.9 % | -3.6 % | 19.4 % |
Nashville, TN | $452,379 | -0.2 % | 34.1 % | Buyer | 19.5 % | 3.1 % | -12.8 % |
Virginia Beach, VA | $362,433 | 1.7 % | 26.2 % | Neutral | 16.6 % | 6.1 % | -10.8 % |
Providence, RI | $507,577 | 2.3 % | 24.2 % | Seller | 10.9 % | 1.5 % | 10.1 % |
Jacksonville, FL | $349,829 | -3.4 % | 29.0 % | Buyer | 9.9 % | -5.0 % | -7.2 % |
Milwaukee, WI | $374,084 | 3.5 % | 22.4 % | Neutral | 1.0 % | 6.9 % | 0.3 % |
Oklahoma City, OK | $241,588 | 1.0 % | 30.1 % | Neutral | 14.8 % | 1.8 % | -10.7 % |
Raleigh, NC | $439,652 | -2.5 % | 36.8 % | Neutral | 36.2 % | 11.6 % | 4.5 % |
Memphis, TN | $241,573 | -0.6 % | 30.0 % | Buyer | 8.9 % | -3.9 % | -14.0 % |
Richmond, VA | $384,103 | 1.3 % | 30.1 % | Seller | 17.3 % | 6.5 % | 12.6 % |
Louisville, KY | $271,220 | 3.4 % | 32.7 % | Buyer | 19.8 % | 11.2 % | -3.9 % |
New Orleans, LA | $255,808 | 0.6 % | 24.7 % | Buyer | 4.9 % | 15.6 % | 3.3 % |
Salt Lake City, UT | $559,991 | 2.2 % | 33.9 % | Neutral | 19.8 % | 6.2 % | -2.5 % |
Hartford, CT | $387,227 | 4.1 % | 20.9 % | Strong Seller | 3.5 % | 1.3 % | -1.1 % |
Buffalo, NY | $280,447 | 3.6 % | 23.0 % | Strong Seller | 8.8 % | 7.8 % | -3.1 % |
Birmingham, AL | $255,704 | 0.4 % | 24.5 % | Neutral | 16.3 % | 14.2 % | 3.2 % |
*Table ordered by market size | |||||||
1 The Zillow market report is a monthly overview of the national and local real estate markets. The report is compiled by Zillow Research. For more information, visit zillow.com/research.
About Zillow Group
Zillow Group, Inc. (NASDAQ:Z) is reimagining real estate to make home a reality for more and more people. As the most visited real estate app and website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated real estate professionals, and easier buying, selling, financing, and renting experiences.
Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce®, and Follow Up Boss®.
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