2025 Year in Review

In 2025, the real estate market moved steadily along, with bursts of activity when interest rates dipped and slower periods in between. More homes came on the market, but sales largely stayed the same, creating pressure on prices and leading to more negotiations. Buyers were less urgent, and homes that weren’t in prime locations or well-priced often sat longer. That said, well-priced homes in desirable locations—and especially luxury properties—still sold quickly, often with multiple offers and above asking price. Condos, on the other hand, faced challenges with higher HOA fees, insurance, and financing hurdles, making them a weaker segment of the market.

Top agents continued to excel, demonstrating that skill, consistency, and creative problem-solving make a difference even in a slower market. Longer sales cycles and cautious buyers required more proactive marketing, stronger social media content, and innovative outreach to stand out.

Looking ahead to 2026, there’s reason for optimism. Mortgage applications in 2025 outpaced 2024, suggesting a pool of buyers ready to act if interest rates drop or economic conditions improve. While affordability challenges remain, the steady demand and continued strength in luxury homes point to a potentially robust spring market. Overall, the market is expected to move similarly to 2025, but with opportunities for smart agents to capture more transactions and build momentum.

Mark Daker of Ameris Bank InsightsEmpty heading

In 2025, the real estate market showed gradual improvement. As interest rates eased throughout the year, mortgage activity slightly increased compared to 2024. Looking ahead to 2026, a new Fed chair is likely as Jerome Powell’s term ends, and lower rates or other incentives may be introduced to improve housing affordability and support buyers. The market remains highly rate-sensitive, with homebuying activity closely tied to interest rate changes.

One notable shift in 2025 was a decline in first-time buyer activity. While grants and down payment assistance remain widely available, rising home prices, property taxes, HOA dues, and rates continue to outweigh these incentives. Meaningful movement in affordability will likely require one of these factors to fall.

Heading into 2026, there is cautious optimism. Interest rates are already back in the high 5% range, historically a level that sparks activity. While dramatic changes are unlikely, steady improvements in rates and buyer activity appear probable. With inflation remaining within manageable levels, the Fed may act to encourage economic growth while maintaining stability, creating favorable conditions for the housing market.