Is The Home Buying Market Turning 9/5/25

Summary

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Your Money Minute – “Is The Home Buying Market Turning?”

Host: Jessica Ettinger, CNBC
Air Date: September 5, 2025
Episode Length: ~1:45 (Excludes advertisements & disclaimers)

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Episode Overview

Jessica Ettinger explores whether the U.S. home buying market is at a pivotal moment. Drawing on recent summer 2025 data and expert insights, the episode examines increased inventory, slower sales, rising all-cash transactions, and early signs of softening prices—particularly in overheated Sun Belt states.

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Key Discussion Points & Insights

1. Market Slowdown and Shifting Seller Strategy

• Homes for Sale Sitting Longer
  • The summer saw a shift as homes lingered on the market rather than quickly selling.
  • Jessica Ettinger: “A turning point in the real estate market looks like it, as homes for sale this summer just sat there on the market for longer and sellers started lowering their prices.” ([00:01])

2. Notable Increase in All-Cash Sales

• Statistical Shift
  • All-cash transactions rose to 31% of home sales (from 27% the prior year), an “unusually high level.”
  • Jessica (quoting the Realtors chief economist): “Days on market rose... and all cash hit 31% of transactions, up from 27% the year before... a very unusually high level of all cash sales.” ([00:14])

3. Inventory Build-Up and Regional Weakness

• Inventory Trends
  • July showed an unusual pileup: homes took about six weeks to sell (compared to much shorter times in recent years).
  • Glenn Kelman (Redfin CEO): “For the first time in years, it was hard to sell a house. The number of weeks it took to get a home off the market went to about six weeks this year.” ([00:38])
• Sun Belt Cooldown
  • Price softness hit Texas, Florida, and other Sun Belt states hardest—areas that “got too hot” during housing booms.

4. Buyer Behavior: Cash Accumulation & Family Assistance

• Financial Shifts Among Buyers
  • With a prolonged period of unaffordable housing, would-be buyers have accumulated larger cash reserves or sought family help.
  • Jessica Ettinger: “People have put off buying homes for so long, they've built up so much cash to buy. And some have enlisted family members for help putting deals together.” ([00:56])

5. Stagnant Home Price Growth Signaling a Possible Turning Point

• July 2025 Median Price
  • The median price of an existing home: $422,400—a scant 0.2% increase year-over-year.
  • Jessica (quoting): “The median price of a home sold in July was $422,400, an increase of just 0.2%... This may be a turning point given that very, very slight increase.” ([01:11])
• Two-Year Trend
  • Annual price increases over the last two years, but this summer’s near-flat growth could mark a shift.

6. Local Variations Remain Crucial

• Markets Differ
  • Despite national data, real estate remains intensely local.
  • Jessica Ettinger: “These are overall numbers and of course it varies market to market because all real estate is local.”
• Sun Belt Focus
  • Jessica: “The Sun Belt, especially Florida, is the epicenter of home price weakness right now, according to Resi Club using Zillow data.” ([01:28])

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Notable Quotes & Memorable Moments

• Jessica Ettinger: “A turning point in the real estate market looks like it...” ([00:01])
• Diana Olek (CNBC): “Days on market rose both for the month and from last year, and all cash hit 31% of transactions... a very unusually high level of all cash sales.” ([00:14])
• Glenn Kelman (Redfin CEO): “For the first time in years, it was hard to sell a house... we saw prices starting to soften, especially in Texas and Florida and other Sun Belt states where the market had gotten too hot.” ([00:38])
• Jessica Ettinger: “People have put off buying homes for so long, they've built up so much cash to buy. And some have enlisted family members for help putting deals together.” ([00:56])
• Jessica Ettinger: “This may be a turning point given that very, very slight increase [in the median price].” ([01:11])

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Important Timestamps

• 00:01-00:13 – Market overview: sales slow, sellers lower prices
• 00:14-00:29 – Diana Olek: Days on market, rise in all-cash home purchases
• 00:30-00:55 – Glenn Kelman: First time in years homes are harder to sell, particularly in the Sun Belt
• 00:56-01:10 – Jessica on buyer strategies: cash buildup, family assistance
• 01:11-01:27 – Median home price, slight annual price gain, possible turning point
• 01:28-01:46 – Local market variations emphasized, Sun Belt weaknesses (esp. Florida)

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Summary Takeaway

This concise episode signals noticeable cooling in the American housing market, characterized by longer listing periods, surging all-cash purchases, a plateau in median prices, and distinct weakness in previously hot markets like Florida and Texas. Would-be buyers have adapted by saving more and getting family support, as sellers respond by dropping prices. The softening, while not uniform across markets, suggests the beginning of a new chapter in U.S. real estate dynamics.

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Transcript

[A]

With a CNBC you Money minute, I'm Jessica Ettinger. A turning point in the real estate market looks like it, as homes for sale this summer just sat there on the market for longer and sellers started lowering their prices.

[B]

Days on market rose both for the month and from last year, and all cash hit 31% of transactions, up from 27% the year before. And the Realtors chief economist noted that that is a very unusually high level of all cash sales.

[A]

That's CNBC's Diana Olek on July sales of used homes, they're called existing homes, new construction homes are measured separately.

[C]

There was a pileup of inventory over the summer. For the first time in years, it was hard to sell a house. The number of weeks it took to get a home off the market went to about six weeks this year. So suddenly we saw prices starting to soften, especially in Texas and Florida and other Sun Belt states where the market had gotten too hot.

[A]

That's Redfin CEO Glenn Kelman on cnb. People have put off buying homes for so long, they've built up so much cash to buy. And some have enlisted family members for help putting deals together. And sellers are on the edge of really lowering their asking prices.

[B]

The median price of a home sold in July was $422,400, an increase of just 0.2% from July of last year. Prices have been up annually for just over two years. This may be a turning point given that very, very slight increase.

[A]

These are overall numbers and of course it varies market to market because all real estate is local. The Sun Belt, especially Florida, is the epicenter of home price weakness right now, according to Resi Club using Zillow data. There's a lot more on real [e-mail] I'm Jessica Ettinger, CNBC.

[D]

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[C]

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