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)

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.

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])

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])

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)

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.