August 25, 2025 Housing Update

Inventory’s climbing and more buyers are shopping the low end

Mike Ugarte
August 25, 2025 • Estimated Reading Time: 3 minutes

Buyers, this week might feel a little different and that’s not just the afternoon storms rolling in.

After weeks of tight inventory and holding prices, we’re finally seeing more listings hit the market.

And while the median price took a noticeable dip, it’s not necessarily about falling values, it’s about where the action is happening.

We saw a solid increase in new listings this week, but the real eye catcher is the nearly $70K drop in median price.

Before you jump to conclusions, this doesn’t mean prices are crashing.

In fact, over the past three weeks, median price has gone down, then up, then down again.

What we’re seeing is likely a shift in which homes are selling, more activity in the lower price ranges, which pulls the median down.

It’s a sign that affordability is driving demand.

If you’re a buyer, there’s more to choose from, and better chances to negotiate.

Sellers in the higher ranges might need to be patient or get more competitive.

Interest Rate: 6.70% (⬆️ up from 6.67% last week)

So What Does That Actually Look Like?

Let’s do the math:

At the current median price of $489,999, with a 5% down payment ($24,950), your loan would be about $474,049.

At a 6.70% interest rate, your estimated monthly mortgage payment (principal & interest only) would be around $3,070.

That’s before taxes, insurance, and HOA fees, but it gives you a clear picture of what monthly costs look like in today’s market.

That $3,070/month doesn’t include taxes, insurance, or HOA, so buyers on a budget are likely targeting homes under $500K.

The drop in median this week lines up with that.

More buyers are getting priced out of the mid-$500s and above, and shifting their search lower.

It’s not a rate panic, its just a practical adjustment.

If you’re listing above the median, your pricing strategy needs to reflect how tight monthly budgets are for most buyers right now.

💡 Affordability Tip:

Even with rates at 6.70%, a small rate drop can save you hundreds per month.

Many lenders now offer rate buy downs or credits. Don’t skip the conversation.

👉 Buyer Tip: Get pre-approved before you shop. Knowing your monthly budget makes it easier to jump when the right home hits the market.

Ready to run the numbers on you ideal home?

Schedule a quick call with me here and I’ll connect you with a local lender who can show you exactly what’s possible in today’s market.