The 2025 housing market isn’t crashing—but it’s definitely shifting. If you’ve been trying to make sense of mixed headlines and uncertain trends, you’re not alone. While some deals are falling through and sellers are making price cuts, savvy buyers and sellers are finding new opportunities in the chaos.
Whether you’re buying or selling FSBO, understanding the current market gives you an edge—and might just help you save thousands.
Canceled Deals Are on the Rise
According to the National Association of Realtors (NAR), about 6% of pending home sales were canceled in May 2025—up from 5% the year before. Redfin’s numbers are even higher, reporting that nearly 14.6% of pending contracts fell through. That’s the highest cancellation rate for May since Redfin started tracking.
Why the spike? The most common reasons include financing problems, appraisal gaps, and sudden job losses.
This highlights the importance of choosing a lender that’s flexible and responsive. The right financing partner can make or break a deal, especially when things get complicated.
Buyers Are Starting to Regain the Upper Hand
Market power is shifting. A recent survey from Real Brokerage shows that 43% of agents now believe it’s a buyer’s market, while only 28% still see conditions favoring sellers.
Inventory is increasing, homes are sitting on the market longer, and sellers are more open to negotiations and concessions. It’s giving buyers more time—and more leverage—to find the right home and make competitive offers.
Price Cuts Are Becoming More Common
Another sign the market is adjusting? Price reductions. By the end of June, about 40% of homes for sale had cut their asking prices. That’s up from 38% last year and higher than the historical average of about one-third of listings.
These price drops may slow down if interest rates continue to fall, but for now, buyers are seeing more flexibility in list prices and room to negotiate better terms.
Mortgage Rates May Be Trending Down
After weak jobs data, the 10-Year Treasury yield dropped to 4.27%—its lowest point in weeks. Since mortgage rates tend to follow this yield, it’s a sign that rate relief may be coming soon.
Between late May and late June, the average 30-year fixed mortgage rate dipped from 6.925% to 6.678%. That downward trend could continue, especially if the Federal Reserve announces a rate cut at its next meeting in September.
What This Means for You
If you’re asking, “Is now the right time to buy?”—you’re not alone.
Here’s the reality: inventory is up, mortgage rates are easing, and sellers are more negotiable than they’ve been in a while. Waiting could mean more competition and fewer concessions if rates drop and more buyers flood back into the market.
That’s why many financially-ready buyers are choosing to act now, while the conditions are still in their favor.
If you’re planning to sell your home without an agent, now could be your moment. More buyers are active, price cuts are common, and mortgage rates are slowly improving—creating the perfect mix of motivation and flexibility.
At List With Freedom, we make it simple to list your home on the MLS, connect with serious buyers, and stay in control of your sale. No big commissions. No hidden fees. Just smarter selling.
👉 Ready to list your home and take advantage of today’s market? Start your listing now or explore our flat-fee MLS packages.
