Increased inventory continues to put downward pressure on pricing, leading to a 4% drop month-over-month. In other words, the prices we saw just 2 to 4 months ago are no longer achievable in today’s market. We’re also down 4% year-over-year—though that sounds more dramatic than it likely is.
For context: 2024 pricing peaked in May (a bit later than usual), whereas 2025 pricing peaked in March (a bit early). May 2025 prices are roughly in line with June 2024, suggesting a seasonal softening. And yes, it’s very likely we’ll see prices dip again next month.
The big question now: will inventory stabilize or continue to climb? We’ve had a notable spike in new listings, which is a welcome shift! More inventory means more choice for buyers—and it also introduces new strategy considerations for sellers.
The old “stick a sign in the yard and it’ll sell” mindset? That’s long gone (and frankly, I’ve never liked that phrase—there’s a world of difference between selling and maximizing value, but I digress).
A balanced market is healthy. It just takes some getting used to.
Such a fun client appreciation event! I’m so grateful for my amazing clients and referrers, as well as the best lending partner in the industry – Wendy Mariani.
Now that buyers have more options for their move, you need to be a bit more intentional about making sure your house looks its best when you sell. And proper staging can be a great way to do just that.
What Is Home Staging?
It’s not about making your house look super trendy or like it belongs in a magazine. It’s about helping it feel welcoming and move-in ready, so it’s easy for buyers to picture themselves living there.
It’s important to understand there’s a range when it comes to staging. It can include everything from simple tweaks to more extensive setups, depending on your needs and budget. But a little bit of time, effort, and money invested in this process can really make a difference when you sell – especially in today’s market.
A study from the National Association of Realtors (NAR) shows staged homes sell faster and for more money than homes that aren’t staged at all (see below):
Which Rooms Matter Most?
The best part is, odds are you don’t have to stage your whole house to make an impact. According to NAR, here’s where buyers’ agents say staging can make the biggest difference (see graph below):
As you can see, agents who talk to buyers regularly agree, the most important spaces to stage are the rooms where buyers will spend the most time, like the living room, primary bedroom, and kitchen.
While this can give you a good general idea of what may be worth it and what’s probably not, it can’t match a local agent’s expertise.
How an Agent Helps You Decide What You Need To Do
Agents are experts on what buyers are looking for where you live, because they hear that feedback all the time in showings, home tours, walkthroughs, and from other agents. And they’ll use those insights to give their opinion on your specific house and what areas may need a little bit of staging help, like if you need to:
Declutter and depersonalize by removing photos and personal items
Arrange your furniture to improve the room’s flow and make it feel bigger
Add plants, move art, or re-arrange other accessories
A lot of buyers can use the agent’s know-how as the only staging advice they need. But, if your home needs more of a transformation, or it’s empty and could benefit from rented furniture, a great agent will be able to determine if bringing in a professional stager might be a good idea, too. Just know that level of help comes with a higher price tag. NAR reports:
“The median dollar value spent when using a staging service was $1,500, compared to $500 when the sellers’ agent personally staged the home.”
A local agent will help you weigh the costs and benefits based on your budget, your timeline, and the overall condition of your house. They’ll also consider how quickly similar homes are selling nearby and what buyers are expecting at your price point.
Bottom Line
Staging doesn’t have to be over-the-top or expensive. It just needs to help buyers feel at home. And a great agent will help you figure out the level of staging that makes the most sense for your goals.
Which room in your house do you think would make the biggest impression on a buyer?
Let’s walk through your home together and chat about what will make your house stand out.
A few years ago, homes were flying off the shelves and getting multiple offers well over their asking price. It felt like you could name your price and still have buyers lined up at the door.
But today’s housing market is different. Buyers are getting more selective now that inventory has grown. Homes are sitting a little longer. And more sellers are having to cut their prices.
So, how do you still come out on top? It all starts with one thing, pricing your house right from the start. Today, that matters more than ever – and it can make or break your sale.
There’s a Real Price Disconnect Between Buyers and Sellers
A recent survey from Realtor.com shows 81% of home sellers believe they’ll get their asking price or more. But the actual sales data shows there’s a growing gap between what sellers expect and what buyers are actually willing to pay.
In fact, an annual report from the National Association of Realtors (NAR) shows 44% of recently sold homes went for less than the asking price. And 1 in 3 sellers had to cut their price at least once before the home sold. It’s a sign that expectations may be a little out of step with today’s reality.
Check out the graph below. It uses data from Redfin to show that asking prices (blue line) are higher than actual sales prices (green line) by a wider and wider margin:
This tells you something important: not all buyers are willing to pay what many sellers are asking. That doesn’t mean you can’t sell for a great price – but it does mean you need to start with a price that reflects what people are willing to pay in today’s market.
What Happens When You Overprice Your House?
Pricing your house high initially may seem like a smart move, so you have more room to negotiate. But the reality is, an overpriced home can sit on the market and turn buyers away.
Buyers are smart. And when they see a house that’s been sitting for a while, they start to wonder what’s wrong with it. That can lead to fewer showings, less interest, and eventually, a price cut to re-ignite attention. As Realtor.comexplains:
“By getting the right price early on, you can increase the odds buyers will be interested in the home. In turn, this decreases the chances the home will sit on the market for a lengthier timeline, also reducing the odds you’ll need to lower the listing price.”
The longer a house sits, the harder it can be to sell.
You Still Have a Great Opportunity – If You Price Your House Right
To avoid making this mistake, it’s important to lean on an agent who knows what’s happening locally when you set your asking price.
Your agent will look at recent local sales, buyer trends, and inventory levels to find that pricing sweet spot for your neighborhood – because it’s going to be different based on where you live.
And here’s something else to keep in mind, home prices have climbed more than 57% over the past five years. So, even if you price a bit below the number you had your sights set on, you’ll likely still be in a great position profit-wise.
With a local real estate agent’s help, you’ll attract more attention, avoid seeing your house sit on the market too long, and maximize your chances of getting a strong offer.
In today’s market, the right price works. As Mike Simonsen, Founder of Altos Research, explains:
“. . . the best properties, well priced are selling quickly in most of the country.”
Bottom Line
The market has changed, but your opportunity to sell hasn’t. You just need the right pricing plan. Let’s walk through what’s happening with prices in our area and determine what price would help your house sell quickly and for top dollar.
We’re currently in a balanced market, with inventory on the rise. This increase in supply is putting downward pressure on prices. Still, some areas are experiencing strong demand—though it’s unpredictable and varies by neighborhood and price point.
A balanced market is healthy overall, but it does require a mindset shift.
What does this mean for you? Sellers should price strategically—often on the lower side. Overpricing can lead to missed opportunities and the risk of chasing the market downward, which can ultimately cost both time and money.
Buyers can feel more confident. If you’re financially comfortable with the monthly payment and plan to stay in the home for at least 3 years, this could be a smart time to make a move. After the initial weekend on the market, buyers can often negotiate about 3% off the list price.
Especially in areas where inventory is rising, both homebuilders and sellers are sweetening the deal for buyers with things like paid closing costs, mortgage rate buy-downs, and more. In the industry, it’s called a concession or an incentive.
What Are Concessions and Incentives?When a seller or builder gives you something extra to help with your purchase, that’s called either a concession or an incentive.
A concession is something a seller gives up or agrees to in order to reach a compromise and close a deal.
An incentive, on the other hand, is a benefit a builder or seller advertises and offers up front to attract and encourage buyers.
Today, some of the most common ones are:
Help with closing costs
Mortgage rate buy-downs (to temporarily lower your rate)
Discounts or price reductions
Upgrades or appliances
Home warranties
Minor repairs
For buyers, getting any of these things thrown in can be a big deal – especially if you’re working with a tight budget. As the National Association of Realtors (NAR) says: “. . . they can help reduce the upfront costs associated with purchasing a home.”
Builders Are Making It Easier To Buy It’s not just one builder willing to toss in a few extras. A lot of builders are using this tactic lately. As Zondasays: “Incentives continued to be popular in March, offered by builders on 56% of to-be-built homes and 74% of quick move-in (QMI) homes, which can likely be occupied within 90 days.”
That’s because they don’t want to sit on inventory for too long. They want it to sell. And according to the National Association of Home Builders (NAHB), one of the strategies many builders are using to keep that inventory moving (and not just sitting) is a price adjustment (see graph below):
Around 30% of builders lowered prices in each of the first four months of the year. While that also means most builders aren’t lowering prices, it also shows some are willing to negotiate with buyers to get a deal done.
This isn’t a sign of trouble in the market, it’s an opportunity for you. The fact that the majority of builders offer incentives and roughly 3 in 10 are lowering prices means if you’re looking at a newly built home, your builder will probably try to make it easier for you to close the deal.
Existing Home Sellers Are Offering More, Too More existing homes (one that someone has lived in before) have been hitting the market, too – which means sellers are facing more competition. That’s why over 44% of sellers of existing homes gave concessions to buyers in March (see graph below):
And, if you look back at pre-pandemic years on this graph, you’ll see 44% is pretty much returning to normal. After years of sellers having all the power, the market is balancing again, which can work in your favor as a buyer.
But remember, concessions don’t always mean a big discount. While more sellers are compromising on price, that’s not always the lever they pull. Sometimes it’s as simple as the seller paying for repairs, leaving appliances behind for you, or helping with your closing costs.
And considering that home values have risen by more than 57% over the course of the past 5 years, small concessions are a great way for sellers to make a house more attractive to buyers while still making a profit.
Bottom Line Whether you’re looking at a newly built home or something a little older, there’s a good chance you can benefit from concessions or incentives.
If a seller or builder offered you something extra, what would make the biggest difference to help you move forward? Let’s talk about it and see if it’s realistic based on inventory and competition in our local market.
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