Real Estate in 2025: A Slower Market, a Smarter Approach

March 2025 saw 892,561 active home listings — up 28.5% year-over-year, the highest March inventory in years.

In 2025, we’re seeing a market that looks very different from the one we experienced just a few years ago. Interest rates have settled above 7%, buyers are more deliberate, and sellers are approaching their decisions with added care. But contrary to what some may assume, activity hasn’t disappeared, it’s just evolved.

One of the clearest signs of that shift is the rise in inventory. After a slow 2023, more homeowners are returning to the market. According to Realtor.com, the total number of unsold homes, including those under contract, was up 17.3% year-over-year in March 2025, with new listings climbing more than 10%, making it the most active March in three years. It’s a signal that many sellers are adjusting to the current landscape and re-engaging with clearer expectations.

A More Considered Buyer Experience

For buyers, this environment offers something we haven’t seen in a while: breathing room. With more options available and fewer bidding frenzies, people are taking time to understand what really fits their lifestyle, their needs, and their future plans.

This isn’t a market defined by urgency, it’s one shaped by intention. And for buyers who are prepared, there are meaningful opportunities to find the right home with more flexibility and less pressure.

Sellers Still Have an Advantage With the Right Approach

On the seller side, the path to a successful transaction is still very much open. But in a slower market, strategy matters. Well-prepared listings—priced accurately, presented cleanly, and launched with intention—are seeing strong engagement.

One approach I use at Compass is a three-phase marketing strategy. It begins with a Private Exclusive listing, shared strategically with a network of agents and clients to gauge early interest without accruing days on market. From there, a Coming Soon phase on Compass.com helps build visibility before the home hits public platforms. Finally, we go fully live on the MLS and major listing sites, informed by data and feedback from earlier stages.

Timing Isn’t Just About Rates

There’s been plenty of conversation about waiting for rates to drop, but timing the market is rarely simple. When rates do eventually ease, demand may increase, and with it, competition. Buyers who move now with preparation and guidance often find themselves in a stronger position to negotiate and plan for the long term.

The same is true for sellers. Listing in a moment of growing inventory and buyer re-engagement, with the right tools in place, can lead to a smoother and more confident sale.

A Market That Reflects Real Life

Ultimately, people make real estate decisions based on life—changing needs, growing families, new chapters. That’s what keeps the market moving, even as it shifts.

In today’s market, thoughtful planning goes a long way. For those willing to take a more measured approach, 2025 offers opportunities that are just as real as the ones we saw in faster-paced years, just with a little more clarity.

Mendel Fellig is a top-producing agent with Compass, specializing in luxury real estate across Miami Beach, Bal Harbour, Surfside, and greater South Florida. With over a decade of experience, he brings strategic insight and steady guidance to buyers and sellers navigating a changing market.