The U.S. housing market is entering a new phase as contract cancellations rise and sellers begin adjusting expectations. In a recent episode of On the Market, host Dave Meyer and the BiggerPockets team outlined three major real estate trends reshaping the landscape for buyers, sellers, and investors in 2025.
🔍 1. Buyer’s Market Emerges Nationwide
For the first time in over a decade, sellers now outnumber buyers in many U.S. cities, especially across the Southeast and Sunbelt regions. According to Redfin data, sellers exceed buyers by over 500,000, signaling a clear shift in market power.
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Inventory continues to rise
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Buyers are gaining leverage
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Negotiations favor buyers again
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Prices are softening in high-growth cities like Atlanta and Tampa
This shift creates both opportunities and risks. Buyers can secure better deals, but may face price declines if the trend persists.
📉 2. Contract Cancellations Hit 14.3% in April
Cancellations—homes going under contract but not closing—are on the rise, climbing to 14.3% in April 2025, up from 13.5% the previous year.
Top cities with high cancellation rates:
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Anaheim, CA – 16%
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Seattle, WA
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Milwaukee, WI
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Los Angeles, CA
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Nashville, TN
These trends suggest buyers are more cautious and are backing out when inspections, financing, or terms aren’t ideal—further evidence of shifting leverage.
🔑 Investor Tip:
Focus on properties returning to market after cancellations. Sellers may be more willing to negotiate favorable deals after losing a previous offer.
đź“Š 3. Mortgage Delinquencies Stay Low Despite Market Shifts
Contrary to fear-driven narratives, serious mortgage delinquencies for single-family homes remain low at 0.57%, down from 0.59% in March.
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Still well below the 4.2% level seen during the 2008 crisis
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Fewer signs of forced selling
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Residential market remains relatively stable
However, multifamily delinquencies are rising, reaching 0.5%—a notable increase from under 0.1% pre-pandemic. This is tied to adjustable-rate loans resetting and tighter financial conditions.
🧠What This Means for Investors in 2025
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Act strategically in a buyer’s market: Don’t overpay—negotiate below asking prices.
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Look for properties returning to market: Use failed contracts to your advantage.
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Stay cautious in multifamily: More delinquencies may lead to further price declines.
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Monitor local conditions: Regional differences remain significant.