Evan Draxler
The real estate market is constantly evolving. Whether you're thinking about selling, buying, or investing, understanding current trends can help you make smarter decisions. Here are the key trends shaping the real estate market and what they mean for your property decisions.
1. Home Prices: Growth Slowed but Prices Remain Elevated
After years of aggressive price appreciation driven by pandemic-era demand and record-low inventory, home price growth has decelerated significantly. According to the S&P CoreLogic Case-Shiller Home Price Index, national home prices increased approximately 4.5% year-over-year through mid-2024, down from the double-digit gains seen in 2021 and 2022. However, prices have not declined nationally — they are simply growing at a more sustainable pace. In the five states where Premium Cash Buyers operates, the picture varies. Indiana and Ohio saw modest appreciation of 3 to 5%, while Tennessee and Georgia metros like Nashville and Atlanta maintained stronger gains due to continued population in-migration. Wisconsin markets remained relatively stable with 2 to 4% appreciation. The key takeaway for sellers: your home is likely worth more than you think, but the days of receiving 10 offers over asking price within a weekend are largely behind us.
2. Mortgage Rates: Elevated and Reshaping Buyer Behavior
Mortgage rates have been one of the most significant forces in the real estate market. After bottoming near 2.65% in early 2021, the average 30-year fixed rate climbed above 7% in late 2023 and has stabilized in the 6.2 to 6.8% range according to Freddie Mac. This means a buyer purchasing a $300,000 home with 20% down now pays approximately $1,570 per month in principal and interest, compared to $965 at the 2021 low — a 63% increase in monthly cost for the same home. The impact on demand has been substantial. Many would-be buyers are priced out or choosing to wait, reducing competition for sellers. First-time buyers are particularly affected, as higher rates shrink the price range they can afford. For sellers, this means fewer qualified buyers in the traditional market, longer days on market, and a growing advantage for cash buyers who are not affected by interest rate fluctuations.
3. Inventory: Rising but Still Below Historical Norms
Housing inventory has been the central constraint on the market since the pandemic. According to the National Association of Realtors, active listings rose to approximately 4.2 months of supply nationally by early 2026, up from a historic low of 1.6 months in early 2022. While this represents a meaningful improvement, it remains below the 5 to 6 months that economists consider a balanced market. The inventory increase is driven by two factors: more new construction (single-family housing starts have risen to approximately 1 million units annually according to the Census Bureau) and some existing homeowners finally choosing to sell despite the so-called lock-in effect, where homeowners with sub-4% mortgages are reluctant to sell and take on a new mortgage at 6 to 7%. In Indiana, Ohio, and Wisconsin, inventory levels are slightly higher than the national average, creating more options for buyers but longer selling timelines for owners listing traditionally.
4. Cash Sales Continue to Grow in Market Share
One of the most significant structural shifts in the market is the growing share of cash transactions. According to NAR data, cash sales now represent approximately 28% of all residential transactions nationally, up from 19% in 2019. In many Midwest and Southeast markets, the cash share is even higher. This trend reflects several factors: institutional investors and iBuyers have expanded their footprint, individual investors are deploying capital into rental acquisitions, and more homeowners are discovering that cash offers provide a faster, more certain path to closing. For sellers, the rise of cash transactions means more options. Rather than being limited to listing with an agent and waiting for a financed buyer, homeowners can now compare traditional listing estimates against cash offers and choose the approach that best fits their timeline, financial situation, and property condition.
5. Local Markets Vary — Midwest and Southeast Remain Resilient
National headlines do not always reflect what is happening in your local market. While coastal markets like San Francisco and New York have experienced more pronounced price corrections, Midwest and Southeast markets have remained remarkably resilient due to lower price points, continued population growth, and relative affordability. In Indiana, the Indianapolis metro area continues to attract relocating workers and remote employees drawn by a cost of living roughly 10% below the national average. Ohio markets like Columbus and Cincinnati benefit from diversified economies and strong job growth in healthcare and technology. Tennessee cities, particularly Nashville and Memphis, remain popular relocation destinations. Georgia, led by the Atlanta metro, continues to see robust demand driven by corporate relocations. Wisconsin markets are steady with consistent demand from local buyers. Understanding your specific local market is essential when deciding when and how to sell.
What These Trends Mean for Sellers
For homeowners considering a sale, the current market environment creates a specific set of considerations. First, pricing your home competitively from day one is more important than ever — overpriced listings sit on market and often sell for less than they would have at a realistic initial price. According to Realtor.com, 35% of listings required at least one price reduction before selling, with the average reduction being 5.5% of the original list price. Second, prepare for a longer selling timeline. Days on market have increased from the record lows of 2021 to 2022, and sellers should budget for 2 to 3 months of carrying costs (mortgage payments, taxes, insurance, utilities) during the listing period. Third, consider all your options. A cash offer may produce a lower sale price than a traditional listing, but when you subtract commissions (5 to 6%), closing costs (2 to 3%), repair costs, staging, and carrying costs, the net difference often shrinks to 2 to 5% of the home value — and you close in days rather than months.
What These Trends Mean for Buyers
Buyers today have more options and more negotiating leverage than at any point since before the pandemic. With inventory rising and competition declining, you can take your time, compare properties, and negotiate on price, closing costs, and repair credits. Shop around aggressively for mortgage rates — even a 0.25% difference can save thousands over the life of a loan. Consider emerging markets in the Midwest and Southeast where your dollar goes further. Pre-approval is still essential, as sellers in a more balanced market will prioritize buyers who can demonstrate financing readiness. If you are also selling a home to fund your purchase, consider the timing carefully — selling for cash first gives you the financial certainty to make a stronger offer on your next home.
Looking Ahead: What to Watch in 2025 and 2026
The real estate market will continue evolving based on three primary drivers: Federal Reserve interest rate decisions (which influence mortgage rates), new housing construction levels (which determine inventory), and broader economic conditions (employment, inflation, consumer confidence). Most economists project mortgage rates will gradually decline toward the 5.5 to 6% range over the next 12 to 18 months, which could unlock pent-up demand from both buyers and sellers. For homeowners who need to sell now — whether due to foreclosure, relocation, divorce, inheritance, or financial hardship — waiting for better market conditions is not always an option. In those situations, a cash sale provides certainty and speed regardless of where rates, prices, or inventory levels stand.
