As the housing market experiences a slowdown, sellers are adapting by providing enticing incentives to attract buyers, as highlighted in a recent report by Zillow. It was discovered that a significant number of sellers, approximately two-thirds, included closing cost coverage in their transactions in 2025. Furthermore, one in three sellers opted for a rate buydown, while an equal proportion placed importance on finalizing the sale within their preferred timeframe, even if it meant a slight reduction in profit.
The current shift towards a buyer’s market has resulted in an excess of properties available compared to the number of potential buyers, creating a scenario where buyers are benefiting from an array of incentives towards the end of the year. The Case-Shiller Home Price Index indicated a slowdown in property value growth in 2025, with appreciation rates dipping below historical averages. Although some sellers have chosen to hold off on listing their properties, anticipating better conditions in the spring, there continues to be a substantial inventory to sustain a reasonable level of property appreciation nationwide.
According to Zillow’s analysis, today’s homebuyers are more discerning and strategic in how they engage with the real estate market. Repeat buyers now make up the majority of purchasers, bringing with them experience and a methodical decision-making process that focuses not only on prices and interest rates but also on potentially impactful public policies related to housing affordability.
Consumers are increasingly turning to digital tools to gather information and make informed choices. The report emphasized the significant reliance on online platforms by both sellers and buyers to select real estate agents and facilitate transactions. This digital proficiency is shaping the current real estate landscape, with nearly half of repeat buyers narrowing down their list of agents through online research.
Overall, the changing dynamics in the housing market point towards a shift in consumer behavior, as individuals become more knowledgeable and deliberate in their real estate dealings. Sellers are responding to market conditions by offering attractive incentives to draw in buyers amidst this evolving economic backdrop.
How ABC Lower Can Help:
ABC Lower provides quick property-based financing options that can assist both buyers and sellers in navigating the changing landscape of the real estate market with flexibility and ease.
Source: National Mortgage News
