Is the housing market cooling? September 2025 housing market trends buyers and sellers should watch

TL;DR

September 2025 housing market trends point to rising inventory and longer days on market, giving buyers more options in many metros. With the national median list price near $425,000 and year-over-year declines concentrated in the West, the best strategy is hyper-local: compare supply, days on market, and price cuts by tier before you bid.

Why September 2025 feels different for buyers and sellers

A data-driven map illustrates regional housing market shifts, highlighting varied inventory and pricing trends across the US.

Here’s the thing about the housing market right now: it’s both cooler and complicated. Recent national listing data shows active inventory up double digits year over year for the 23rd straight month, yet the pace of growth is slowing. For buyers, that means more choice than they’ve had in years. For sellers, it means pricing discipline is back in style.

Zoom in, though, and the map splits. The South and West sit above their pre-2020 inventory baselines while the Northeast and Midwest remain short on supply. Meanwhile, the typical listing lingered around 62 days — about a week longer than this time last year — a clear signal that negotiation is back on the table in many zip codes.

Prices? Flat nationally near $425,000, but they’re falling in parts of the West while holding or edging up on a price-per-square-foot basis in the Northeast and Midwest. In short, the September 2025 housing market trends favor informed, tactical moves — not blanket assumptions.

What the data says: inventory, prices, and days on market

What the data says: inventory, prices, and days on market

Active listings rose roughly 17% year over year in September, while time on market stretched to about 62 days — seven days slower than a year ago.

Supply is the headliner. National inventory has held above one million listings for months, yet still sits about 13.9% below typical 2017–2019 levels, signaling recovery without a full reset. The divide is stark: the West and South are now above pre-pandemic inventory (roughly +7.5% and +6.1%), whereas the Midwest and Northeast remain deeply undersupplied (down around 36% and 49% from their 2017–2019 norms).

Time on market is doing the heavy lifting for buyers’ leverage. Many Southern and Western metros added the most days, with places like Las Vegas and several Florida markets seeing double-digit slowdowns. When homes take longer to sell, price cuts follow — and nearly 20% of listings saw reductions in September, with the $350,000–$500,000 tier most likely to trim.

Prices are steady at the national level — median list price around $425,000 — but the West saw a drop of about 3.6%. On a price-per-square-foot basis (a better apples-to-apples measure), the Northeast and Midwest are inching up, while the South and West are slipping. Translation: a three-bed in Phoenix might price softer than last year, while a smaller home near Boston may look pricier per square foot despite a flat headline number.

User insight: Buyers comparing median list price alone can miss the story. Look at price per square foot, days on market, and the share of price cuts in your target tier to understand true momentum.

Anecdote

A designer friend swears by the “third weekend test.” If a listing hasn’t adjusted by day 21, her buyers write with a value ask and fast-close terms — and win more often than not.

Common mistakes in a cooling-but-split market

Common mistakes in a cooling-but-split market

Buyers often overgeneralize trends, but September’s market rewards metro-level nuance and tier-aware offers.

• Using national averages to set offers. Why it happens: headlines are simpler than comps. Fix it: filter by neighborhood, property type, and price tier. A 62-day national average won’t help if your micro-market still sells in 20 days.
• Ignoring price-per-square-foot. Why it happens: list price is louder. Fix it: normalize by size; experts recommend checking at least three comps within ±10% of your target home’s square footage.
• Chasing “deal” metros without factoring holding costs. Why it happens: falling prices tempt investors. Fix it: run the full carry — taxes, insurance, HOA, utilities — and assume a 30–60 day longer lease-up or resale window in slower markets.
• Sellers anchoring to spring pricing. Why it happens: recency bias. Fix it: if you’re 10–14 days with light showings, adjust quickly. Data shows reductions cluster in the $350,000–$500,000 range; better to right-size early than chase the market down.
• Skipping pre-list refreshes. Why it happens: low-inventory muscle memory. Fix it: minor updates (paint, lighting, curb appeal) can cut days on market by a week or more in cooler submarkets, agents say.

Pro tips to win now — without overpaying

Pro tips to win now — without overpaying

In markets with 60+ median days on market, buyers can often negotiate 1–3% off ask or secure credits for closing costs or repairs.

• Lead with speed, not just price. Shorten contingencies thoughtfully: a 5–7 day inspection window and a lender pre-underwrite can beat a higher offer with uncertainty.
• Target listings at 21, 35, and 49 days. Sellers commonly re-evaluate after three weekend cycles. If a home hasn’t adjusted, ask for credits or a price aligned with recent comps.
• Shop the middle tiers strategically. Where price cuts cluster ($350,000–$750,000 in many metros), ask for 2–3 asks: price, credit, and a needed repair. Sellers may accept one or two to keep optics on price.
• For sellers: front-load value. Price within 2–3% of the most recent comp, then stage the top three rooms buyers judge first — kitchen, living room, and primary suite. High-quality photos and precise copy lift click-throughs and tours.
• Use scenario planning. Build three offers: base (at ask), value (ask minus credit), and stretch (slightly above ask with stronger terms). Pick the right one based on days on market and showing traffic.

Reflection: Markets don’t turn on headlines; they pivot on behavior. When buyers and sellers adjust faster than their neighbors, they capture the spread.

Real stories from the field: what changed when strategy did

Real stories from the field: what changed when strategy did

In a West Coast suburb, a family watched a $615,000 listing sit for 28 days. They led with a clean pre-underwrite, asked for a $9,000 credit, and kept the price intact. The seller preferred saving face on price — the family saved cash at closing.

One Orlando condo seller held firm for three weeks and logged only four showings. After refreshing paint and swapping yellowed can lights for 3000K LEDs, photos popped; they cut $7,500 and accepted an offer within five days. The tweak trimmed almost two weeks off likely time on market in that micro-pocket.

A Denver buyer targeted homes around 35 days active. He negotiated a 2% seller credit to buydown his rate and won at asking. His takeaway: in markets with rising inventory, credits can be easier to win than outright price cuts.

In Hartford’s tight market, a couple avoided overbidding by studying price per square foot. They passed on a charming but overpriced bungalow and waited one week for a new comp to hit. Their final purchase appraised cleanly — less stress, fewer surprises.

Visualization Scenario

Picture opening your search app on a Saturday morning. You filter to homes at 30+ days on market within your target school zone and price tier. Three listings appear. You tour the best one at noon, confirm nearby comps are 2–3% lower, and send a clean offer with a 7-day inspection and a $10,000 credit for roof and HVAC. By Monday, you’re under contract — not because you paid more, but because you read the tempo.

Suggested image caption: “September 2025 housing market trends by region: higher inventory in the South and West, tighter supply in the Northeast and Midwest.” Suggested alt text: “Map showing September 2025 housing inventory growth and days on market by U.S. region.”

FAQ: quick answers for today’s housing market

FAQ: quick answers for today’s housing market

Is the housing market cooling in September 2025?

Yes, the market shows cooling signs: active listings are up year over year and median days on market are about seven days longer. Buyers in many South and West metros have more leverage than last year.

Where are home prices falling right now?

List prices are softest in parts of the West, with national prices roughly flat around $425,000. Always compare price per square foot locally to see true movement.

How long are homes sitting on the market?

The typical home spent about 62 days on market in September, with the biggest slowdowns in several Florida metros and Las Vegas. Longer marketing windows often precede price cuts.

Which markets have the most inventory growth?

Large metros across the South and West lead inventory gains, while the Northeast and Midwest remain below pre-2020 supply. More supply usually translates to stronger buyer negotiating power.

How should I negotiate in a buyer’s market?

Target listings past 21–35 days and pair a clean pre-underwrite with credits for closing costs or repairs. In many cases, 1–3% off list or equivalent credits are attainable.

Bottom line for September 2025 housing market trends

Bottom line for September 2025 housing market trends

Inventory is up roughly 17% year over year and homes are taking about a week longer to sell, creating leverage — but unevenly. The West and South feel cooler, the Northeast and Midwest tighter, and price reductions concentrate in lower and middle tiers.

If you’re buying, use days on market, price-per-square-foot, and local price-cut shares to guide your first offer. If you’re selling, price to the last 30 days of comps and make your home camera-ready; you’ll protect time and net. Want to test layouts, palettes, and listing visuals before you spend a dollar? Mock up rooms with ReimagineHome and launch with confidence.