Buyers Gain Traction During the Slowest Month of the Year in Real Estate

The housing market continues to move in buyer’s favor as 2025 comes to a close and the focus turns to the holidays. After a hotter-than-normal early fall, with elevated activity among both buyers and sellers, the market largely fell back in line with seasonal norms in November. Sellers stepped back in time for the holidays, as they typically do, while lower mortgage rates brought affordability to highs not seen since 2022. 

The number of total homes for sale fell in November, and so did the share of listings with price cuts. More than 1 in 5 sellers (21%) cut their prices in November, a drop of nearly 6% from the previous month and a steeper than normal decline. New listings in November declined 30%, a sign that sellers appear to be biding their time rather than continue to cut prices. 

Most homeowners still have equity in their homes, which gives them breathing room and the option of waiting to sell in the Spring, when buyer demand usually picks back up. 

“Affordability is still a hurdle for home buyers, but 2025 brought real progress,” said Zillow Senior Economist Kara Ng. “Mortgage payments dropped by more than $100 a month, while incomes continued to rise. For many households, that small shift can be the difference between sitting out the market and finally being able to buy or sell a home. While sellers and buyers alike pulled back in November, reminding us that seasonality still matters, we expect the market to warm up a bit next spring.”

Over the past three years, November has been the slowest month for buying and selling, according to Zillow data, so there’s a good chance that competition for homes could see an upswing after the new year.

Where we’re seeing shifts in Zillow’s Market Heat Index

The following chart shows how the national housing market has shifted over time to give buyers and sellers equal leverage. Local markets, however, vary greatly. 

Buyers saw two new metros move to favor them in November: Milwaukee and Birmingham. Meanwhile, San Jose, San Francisco and New York cooled down from a strong seller’s market to a seller’s market designation in Zillow’s Market Heat Index. Only Hartford remains a strong seller’s market. 

The main difference between a "sellers market" and a "strong sellers market" is the degree to which market conditions favor sellers. In a sellers market, buyers outnumber sellers, leading to more competition for available homes. In a strong sellers market, competition is even more pronounced, often resulting in multiple offers well above asking price and extremely fast sales.

Metros where home values are declining

Monthly declines 

According to a Zillow analysis, home values fell on a monthly basis in 48 major metro areas. The largest monthly drops were in:

• Austin, TX (-1%)
• Denver, CO (-0.7%)
• Dallas, TX (-0.7%)
• Atlanta, GA (-0.6%)
• Raleigh, NC (-0.6%)

Annual declines 

A Zillow analysis shows home values are down from year-ago levels in 24 major metro areas. The largest drops were in:

• Austin, TX (-6%)
• Tampa, FL (-5.6%)
• Miami, FL (-4.6%)
• Orlando, FL (-4.3%)
• Dallas, TX (-3.9%)

Metros where home values are increasing

Monthly increases 

Home values climbed month over month in just one of the 50 largest metros in November: 

• San Jose (+0.1%)

Other metros with flat or the smallest declines were: 

• New York (0%)
• Birmingham (-0.1%)
• Oklahoma City (-0.1%)
• Memphis (-0.1%).

Annual increases 

Compared to a year ago, home values rose in half of the 50 largest metro areas. Annual price gains are highest in: 

• Hartford (4.6%)
• Cleveland (4.6%)
• Milwaukee (4.5%)
• Buffalo (3.9%)
• Chicago (3.8%)

Check out Zillow's Market Explorer dashboard to see the growth in home values in the U.S. and major metros. (Use the drop-down menu to see individual metros.)

A look back at 2025 national housing market trends

Slow start to the shopping season. Elevated interest rates and economic uncertainty held back home sales during what is usually the busy Spring shopping season. A surge of sellers entered the market, but buyers pressed by affordability concerns didn’t show up in the expected numbers, according to Zillow economists.  

Inventory increased and buyers gained leverage. Existing inventory rose 11.2% compared to a year ago, giving buyers more choices and more time to shop.

Home values flattened. Home values nationally are ending the year right where they started. Homes in some markets lost value, while others gained, according to the Zillow Home Value Index. Nationally, the typical U.S. home in November was worth $359,241. 

Lower rates led to late-season activity. Mortgage rates that declined In October brought buyers and sellers back to the market at a time when things typically cool down for the Fall. Zillow data shows newly pending sales and new listings each were up 5% year over year.

Affordability improved slightly. The combination of falling rates and prices pushed mortgage payments on a typical home down by more than 5% since last year, according to Zillow economists. Mortgage payments as a share of income fell from 35.4% a year ago to 32.6% now. Affordability is still a challenge, but it’s improving by degrees. 

Mortgage interest rates edged down. Mortgage interest rates are about a half point lower in November than they were a year ago. The typical mortgage payment for a buyer putting down 20% with a 30-year fixed mortgage rate of 6.24% was $1,767. View current mortgage rates from Zillow Home Loans.

Find homes in your budget with BuyAbility℠

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Takeaways for buyers and sellers

Buyers should be especially watchful for new listings during the slow season

As sellers take a wait-and-see approach to listing, buyers looking for fresh choices during the slow season would do well to set alerts on their Zillow app so they get notified of new listings when they hit the market. Although buyers generally have more time to shop in most markets, well-priced homes in good condition can still attract competition. That’s why it’s important to stay on top of listings and be prepared to make an offer if you find a home you like.

You should also keep an eye on interest rates, which will affect your monthly payment and/or how much you can afford to spend on a home. The mortgage market tends to react to anticipated cuts by the Federal Reserve Board, which have tended to pull more buyers and sellers into the market. Zillow Home Loans’ BuyAbility tool can help you gauge when it might be a good time for you to buy by giving you a personalized estimate of your buying power based on your financial situation and current mortgage rates. 

Sellers tend to face a harder time in the winter, but local markets and home types have different dynamics

Late Fall/early Winter can be a tough time for sellers, especially if your home has been listed for months. Talk to your agent about trends in your market, and whether you’re likely to fare better in the Spring or benefit now from other sellers pulling back. Zillow data shows sellers of luxury homes continue to fare well, mostly because they’re more likely to have leeway in whether to list or not. Well-priced and well-presented homes continue to sell, so make sure your marketing efforts reach the broadest possible audience. Talk with your agent about strategies that take into account the dynamics of your market, seasonal swings and what makes sense if you’re buying as well as selling.