Surprising Housing Market Revival: Buyers Return Stronger

Unexpected Revival in the Housing Market

The latest September 2025 housing market report from Zillow has unveiled a surprising uptick in activity during what is traditionally a quieter time for real estate. A recent decline in mortgage rates, combined with a robust performance in the stock market, has injected fresh vigor into the market, reviving interest from both buyers and sellers following a lackluster August.

New Listings and Inventory Insights

In September, new listings saw a year-over-year increase of 3%, marking a turnaround from the 3% decrease experienced in August. Monthly figures indicate a slight 2% drop in listings, which is notably better than the historical average of a 9% decline typically seen as the market transitions into fall.

When examining total inventory, there was a modest 1% decrease from August to September; however, this figure remains 14% higher compared to the same time last year.

A Shift in Market Dynamics

The report also highlights a significant change in market dynamics, with 15 of the 50 largest metropolitan areas in the U.S. now classified as buyer's markets, a notable increase from just six such markets last year.

Top Buyer-Friendly Markets According to Zillow

• Miami, Florida
• New Orleans, Louisiana
• Austin, Texas
• Jacksonville, Florida
• Indianapolis, Indiana

Hot Seller's Markets Remain Competitive

Conversely, markets that favor sellers continue to thrive, driven by limited housing supply and stringent land-use regulations.

Leading Seller's Markets as Identified by Zillow

• Buffalo, New York
• Hartford, Connecticut
• San Jose, California
• San Francisco, California
• New York, New York

National Trends Support Zillow's Findings

Recent national statistics bolster Zillow’s observations of a resilient housing market. According to Freddie Mac, the average 30-year fixed mortgage rate has dipped to approximately 6.19%, representing the lowest point of 2025. Additionally, existing home sales surged to a seven-month high in September, as affordability began to improve. Even with 15% of pending sales canceled due to buyer trepidation, data from Redfin indicates that sellers are adjusting their expectations by implementing price reductions and accepting slower-moving transactions.

A Thawing Market Ahead

Collectively, these trends suggest that rather than overheating, the housing market is entering a phase of thawing. Economists at Zillow predict that this “unseasonably active” fall period will extend into the holiday season, fueled by decreasing borrowing costs and pent-up demand. For prospective buyers who have been patiently waiting, this could represent the first genuine opportunity in nearly three years.

This article was adapted from a draft created using generative AI, with an editor verifying the accuracy of the information prior to publication.

This story was originally featured on Fortune.com