Zillow’s September 2025 housing market report reveals an unexpected surge of activity during what is typically real estate’s slow season. A dip in mortgage rates—combined with a strong stock market—sparked renewed energy among both buyers and sellers after a sluggish August.
New listings climbed 3% year over year in September, reversing the 3% decline a month earlier. On a monthly basis, listings dipped 2%, outperforming the historical average of a 9% tumble heading into the fall.
Total inventory slipped just 1% from August to September but sits 14% higher than last year’s levels.
The report also shows a shifting balance of power: 15 of the nation’s 50 largest metros are now buyer’s markets, up from six last year.
Zillow’s heat index names the top buyer-friendly metros:
Miami, Florida
New Orleans, Louisiana
Austin, Texas
Jacksonville, Florida
Indianapolis, Indiana
In contrast, seller-leaning markets remain hot due to limited housing supply and restrictive land-use laws.
The best seller’s markets named by Zillow include:
Buffalo, New York
Hartford, Connecticut
San Jose, California
San Francisco, California
New York, New York
Recent nationwide data reinforces Zillow’s message of resilience. According to Freddie Mac, the average 30-year fixed mortgage rate has dropped to about 6.19%, its lowest point of 2025. Meanwhile, existing-home sales rose to a seven-month high in September as affordability began to improve. And even as 15% of pending sales were canceled amid nervous buyers, Redfin’s numbers show that sellers are adjusting expectations—making price cuts and accepting slower deals.
Together, these trends suggest the housing market is thawing rather than overheating. Zillow’s economists expect this “unseasonably active” fall to carry into the holidays, powered by easing borrowing costs and pent-up demand. For buyers who’ve been waiting for a window, this may be the first real opening in nearly three years.
For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.
