Sellers Take Note, It’s a Housing Rollover

Those home equity fantasies not looking so firm now hunh Boomer

It is finally happening. We waited on this and wondered when the hell it was going to hit. The Biden admin did a great job paying off mortgages to delay a reckoning until after the election, and that election is in the rearview mirror. The American housing market in spring of 2025 is hitting a wall, and it’s not pretty. We’re talking a full-on rollover with prices stalling and falling, inventory piling up, and buyers ghosting like they’re swiping left on Tinder. This ain’t the insane days of 2021 when every Joe Sixpack with a pulse could slap an overpriced listing on Zillow and watch the offers roll in 20% above listing price. The market’s turned, and sellers better wake up, smell the coffee, and get their act together if they want to close deals in this mess. We should offer some guidance and the unvarnished truth about what it’ll take to move a house as the fat lady is warming up.

The mortgage rate problem remains so this limits our pool of buyers. Mortgage rates are sitting at 7%, maybe higher depending on your credit score, and they’re choking demand. That is only part of the problem as the other issue is delusional sellers. The median home price is still in nosebleed territory, around $410,000, according to the National Association of Realtors. That’s pricing out the first-time buyer crowd and making move-up folks think twice. Existing home sales? Down to 3.8 million annualized, a number that screams “recession vibes”. Meanwhile, inventory’s creeping up. Homes are sitting 45 days on market, double what we saw five years ago when we had everyone buying homes in the great city exodus of Covid and Defund the Police mania. Buyers have options now, and they’re picky or squeezed by general inflation pressure. Sellers, do you feel in charge? Stop acting like it because you’re not in charge anymore. Lower your prices.

Some of these sellers are AirBnB investors, some are Boomers who treated their home as their retirement nest egg and some are sellers who think home prices only go up. Sorry if you missed the 2009-2011 cycle, but there are lessons from that you can review. What’s a seller gotta do to get a deal done? Step one: accept the current environment. Stop dreaming about 2022. Pricing your house like it’s still a seller’s market is dumber than betting on a meme stock. Buyers aren’t idiots. They’re scrolling Redfin, checking comps, and laughing at your $500,000 listing when the neighbor’s place sold for $470,000 last month. Your own realtor cannot find the comps you want to justify your desired price because sales numbers are down. Overprice, and your house will sit there collecting dust, racking up days on market. If you don’t have a handful of showings that first week, you overpriced. Smart sellers are coming in at or below comps, 5-10% under an already reduced asking price is the new normal in places like Austin or Miami, where the pandemic boom is done and the market is firmly rolling over. Price it right, or you’re toast. Lower your prices.

You have to work it. Austin and Miami are getting the publicity now but this is a nationwide issue. Real estate is a bit vibes based, and buyers are not going to accept your crap any longer. Your house better look like it’s ready for its close-up on HGTV. Buyers aren’t desperate anymore; they’re comparison shopping and the new generation of buyers (Millennials and even Zoomers) have been raised on mass selection and online presentations. Data from the National Association of Home Builders says move-in-ready homes sell 20% faster. If problems are found at inspection, you will be expected to pay to fix them now. So just take care of it ahead of time. Definitely pony up for some paint, new light fixtures, or a pro stager who can make your place look like a Pinterest board. If you’re really smart, throw in a home warranty or guarantee to cover minor repairs to sweeten the pot. Buyers want turnkey, not a fixer-upper. Lower your prices.

Buyer incentives have entered final contracts again. We have not seen these since 2010. With mortgage rates making buyers’ eyes water, sellers who want to stand out are getting creative. Think rate buydowns. Shell out a few grand to lower the buyer’s rate for a couple of years. On a $400,000 loan, that could save them $300 a month upfront. More standard option is cover closing costs, which run 2-3% of the price. I’ve even heard of sellers throwing in the furniture to seal the deal. In a market where buyers can afford to be choosy, these moves are differentiators. Lower your prices.

Marketing has to be excellent, too. This ain’t the time for grainy iPhone pics or a lazy MLS listing. Professional photos, drone shots, and virtual tours are table stakes now. Redfin says listings with professional visuals get 44% more clicks. Hit every platform, from Zillow to Instagram, and don’t skimp on targeted ads. Open houses, which were unnecessary in ‘21 and ‘22, are back, too. Roll out the red carpet, maybe even partner with a lender to pitch financing options to first-timers. Get bodies through the door, or you’re just yelling into the void. Lowers your prices.

Finally, don’t be a Boomer. Don’t be a hard-ass in negotiations. Buyers are bringing back contingencies and escape clauses because sellers got lazy and the tables have turned. Push back, and they’ll walk to the next listing because there are hundreds of thousands more sellers now. Be ready to split appraisal gaps or fix that leaky faucet the inspector flagged. Some sellers are even doing lease-backs to give buyers flexibility on move-in dates. In a buyer’s market, you bend, or you break. Lower your prices before it’s too late.

Bottom line: spring 2025 is a gut check for sellers and an emerging opportunity for buyers. The housing market’s rolling over, and the days of easy money for lazy asset holders are gone. Timing is so wild because if the rollover turns into a full market correction nationwide, this could be for older Zoomers the 2009-2012 opportunity older Millenials had. Remember buyers, you never have to buy that specific house, but that owner playing hardball is only selling that home.