Q3 2025 - Compass National Market Insights Report
August 2025
RESIDENTIAL REPORTS
August 2025 National Report with sales data through July
Compared to 1 year ago, the U.S. median existing-house sales price ticked up .3% in July 2025, while the median condo/co-op price declined 1.2%. The number of active listings increased slightly from June and 16% from July 2024, while sales volume dropped slightly both month over month and year over year. Nationally, the market remained relatively subdued, effectively hungover from the political/economic volatility and uncertainty prevailing in much of Q2, but conditions and price changes vary by region. Most areas see a seasonal slowdown in summer, though big second-home markets often buck this trend.
58% of sales went into contract within 1 month of coming on the market {vs. 62% in July 2024); 21% sold above asking price {vs. 24% last year). The median time-to-acceptance-of-offer was 28 days, up 4 days from July 2024. Cash purchases accounted for approximately 31% of transactions; 28% of sales were to first-time buyers; 6% were for vacation use; and the percentage of "distressed" sales remained very low at 2%. The average number of offers for sold homes was 2.1 (vs. 2.7 last year), while the number of price reductions rose 22% year over year to its highest month-of-July count since 2018. Over the past 3 months, 6% of contracts were cancelled before the close of escrow, and 13% saw delays in closing.
As of August 20th, mortgage rates, at slightly over 6.5%, are at their lowest since October, but many analysts believe a reduction to the 6% range is needed to significantly boost buyer demand. Stock markets remain close to all-time highs, a big positive for more affluent real estate markets. The last inflation reading was unchanged at 2.7%, but the more recent Producer Price Index saw its largest monthly increase in over 3 years. The Fed kept its benchmark rate unchanged, but consensus opinion is predicting a drop in September. This is uncertain, and much depends on the next inflation report. "Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April ... however, [they] continue to expect both inflation and unemployment to deteriorate in the future." (Univ. of Michigan Surveys of Consumers).
All information is deemed reliable but not guaranteed and should be independently reviewed and verified.
Nicholas Theodore Wong
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