If there’s anyone with their finger on the pulse of America’s real estate market, it is your humble Realtor. We’re out and about every day, trying to find homes for our clients and negotiating with sellers.
If there’s a whiff of economic concern in the wind, we’re among the first to notice. Nothing makes folks back off a property deal faster than fears for their own job security and the performance of the economy.
So, a new survey of what Realtors are seeing and learning from their clients, plus their own business concerns, is compelling commentary for the state of American real estate as we approach the end of 2025.
The survey, conducted by the National Association of Realtors (NAR), captures some of the top challenges for Americans as they consider buying a new home and selling their existing property.
At the top of the list is housing affordability.
With average deal sizes rising for the 28th successive month in October, I don’t think any Realtor would argue against that point on behalf of your average American. Indeed, to paraphrase the 1992 Clinton presidential campaign slogan, “it’s affordability, stupid”.
The average American re-sale price for a house is now more than $415,000. And even with mortgage costs falling to approximately 6.25% in recent weeks, the question of affordability remains the most relevant in real estate.
Local economic conditions are also troubling Realtors. To some extent, this reflects concerns for their own business. However, we’re all operating in the same economy and we all depend on consumer confidence to a greater or lesser degree.
Interestingly for buyers and sellers, the survey found 71% of real estate firms say they actively encourage agents to pursue certifications. Another 61% say they encourage agents to take additional training classes. And some 44% of sales volumes for a Realtor comes from past client referrals.