In April 2025, the U.S. housing market quietly hit a milestone—and not the kind we celebrate. Existing home sales fell to just 4 million on a seasonally adjusted annual basis, making it the slowest April since 2009. That’s a 0.5% dip from March and a 2% decline year over year.
For homebuyers and sellers, this isn’t just another stat—it’s a wake-up call that we’re entering a new phase in the market. And whether you're buying your first home, trying to time a move-up, or listing your home soon, understanding what’s going on can make or save you thousands.
Let’s break down what’s driving the slowdown, how it’s reshaping the market, and what it means for your next move.
The Market Is Slowing—But Prices Aren’t
The current market is weird. There’s no other way to say it.
Home sales are down, but prices are not. In fact, the median sales price hit $414,000 in April—a record high for this time of year. That’s a 1.8% increase compared to 2024. At the same time, 30-year mortgage rates are hovering around 6.86%, which is putting serious pressure on affordability. For many buyers, that monthly payment is a non-starter.
Homes are also sitting longer—averaging 29 days on the market compared to 26 last year. That might not sound like a huge shift, but in real estate, even small delays signal change. Buyers are more cautious. Sellers are adjusting expectations. Negotiations are back in play.
Why This Is Happening: A Perfect Storm of Pressure
This isn’t about one single cause—it’s a mix of compounding issues:
High Mortgage Rates: With rates holding in the high sixes (6.83%), buying power has taken a hit. That dream home you could afford two years ago might now be out of reach. In fact, I just had to cancel two contracts because my seller/buyer realized they had bitten off more than they could chew on the new home they were having built, despite $32,000 in seller concessions to my clients. It’s tough out there.
Record Prices: Despite lower demand, prices have stayed high due to tight inventory over the past few years. That imbalance is only now starting to shift.
Economic Uncertainty: Inflation, job market jitters, and stricter lending standards have many buyers choosing to wait. Fewer people are willing to make a big financial move without certainty.
For sellers, this means it’s taking longer to sell. For buyers, it means less competition—but not necessarily lower prices.
What It Means for Buyers
If you're a buyer, you’re entering a market that finally gives you a bit of breathing room—but you still need to be smart.
You have leverage: More homes are sitting longer, and that opens the door for stronger negotiations. You might be able to ask for seller-paid closing costs, repair credits, or a price reduction—especially if you’re the only offer.
Rates are high, but not forever: If you can afford the payment now, you may be able to refinance later. The phrase “marry the house, date the rate” is more relevant than ever.
Avoid shiny object syndrome: Stick to your buy box—homes that meet your financial goals and lifestyle needs. Now is not the time to take unnecessary risks.
What It Means for Sellers
For sellers, this is not a panic moment—but it is time to get serious about your strategy.
You must price strategically: Overpricing will cost you. Buyers are not in a rush, and if your home sits too long, it will signal to the market that something’s wrong—even if there’s not.
Presentation matters more than ever: Homes that are clean, staged, and properly marketed will still sell quickly. Those that aren't? They’ll linger.
Be ready to negotiate: Offers might come in lower or with contingencies. Don’t take it personally—it’s the market talking. A strong agent will help you evaluate what’s worth accepting and where you can push back.
A Word on Local Markets
Every market is different. National trends don’t always reflect what’s happening in your neighborhood. In places like Middle Tennessee, we’re seeing some stark contrasts:
White House, TN: The average sales price is down 6% year over year, and days on market have ticked up slightly from 19 to 20. Closings are down 13% while new listings are up 4% signaling a slight shift. The silver lining is inventory is still in the range of a strong seller’s market at 2.83 months.
Hendersonville, TN: Prices are holding—up just under 1% year over year—but homes are taking longer to sell. Days on market have nearly doubled from 16 to 29. Sellers still have pricing power, but patience and preparation matter more than ever. Inventory still signals a seller’s market with 3.32 months of supply.
Nashville, TN: The average sales price is down 6%, and days on market are up significantly from 27 to 35. This signals a cooling trend in the city with inventory levels approaching a balanced market, even though it remains a competitive market overall.
Want to know what this means for your home or your next move? I’ve got all the local data you need to make a confident, informed decision.
The Bottom Line
The housing market is cooling—not crashing. And in every shift, there’s opportunity.
Buyers can take advantage of less competition and more negotiation power. Sellers can still win if they align with market conditions, price correctly, and present their homes well. Investors and strategic movers? You might find better deals now than you have in years—but only if you’re prepared.
The key to winning in this market isn’t timing the perfect wave—it’s knowing how to ride the one we’re on.
Thinking of buying or selling this year?
Let’s sit down and talk through your options with real numbers and local data—so you can make a confident, informed move.
