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Zillow 2025 Seller Report and 2026 Predictions

Illustration of Year 2026 with houses around it


I thought I'd share some of the results from their 2025 seller report which indicates a shifting market where sellers experienced more competition with rising inventory in many cities, more price cuts, and more of a balanced market with modest value increases and much longer days on the market. Sellers saw slower time-on-market compared to peak frenzy, with homes taking longer to sell but still faster than pre-pandemic, as some potential sellers held off due to market conditions, despite inventory rising to normal levels by year-end.


Key Trends for Sellers in 2025:

  • Increased Price Cuts: A significant portion of sellers, peaking in January, reduced listing prices to attract buyers, a larger share than seen in years.

  • More Inventory: Housing stock grew throughout the year, approaching pre-pandemic levels by late 2025, giving buyers more choices.

  • Slower Pace of Sales: Homes took longer to sell compared to the intense seller's market of previous years, though still relatively quick.

  • Market Shift Towards Balance: The combination of more listings and slower demand reduced sellers' leverage, moving the market toward a more balanced state.

  • Local Variations: Performance varied significantly by region, with some markets seeing strong value growth (e.g., Hartford) and others experiencing declines (e.g., New Orleans).

2026 Seller Advice & Outlook:

  • Patience & Realism: Sellers need to be more patient and price competitively from the start, as the days of bidding wars for every home are largely over.

  • Moderating Appreciation: Home value growth is expected to be modest in 2025, not the rapid spikes seen previously, making it less frenzied and more 'balanced' but still potentially profitable. It's a great time to sell in many areas and neighborhoods.

  • Hold or List? Some sellers delayed listing in 2025, waiting for better conditions, while others listed and offered price cuts to compete.

Interesting Facts about 2025 Home Sellers:

57% sold and then bought a home. Of these folks, 59% sold first, 31% bought first, and 10% sold and bought simultaneously.

49% moved up to a larger home.

38% right-sized to a smaller, more manageable home.

78% of all sellers moved due to a "life event." (New job, lost a job, retired, found love/married, divorced, had a baby, became an empty nester, death, health challenge, etc.)

*****STAY TUNED! IN MY FEBRUARY Blog Post I WILL BREAK DOWN THE PROS & CONS OF SOME OF THE ABOVE SCENARIOS, SHARE THINGS TO KEEP IN MIND, AND SHARE WAYS TO MAKE THE MOST OF EACH SCENARIO.

Want to get a head start on your plans, preparations, and creating the best outcome? Let's chat!!!





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