Every year there is speculation as to the health of the real estate market. 2025 is no different. However, real challenges continue for both buyers and sellers. Today we are going to explore those challenges and give tips for selling in a sluggish market.

Sluggish Market Defined

The real estate market tends to follow the overall economy. Therefore, when the economy in general is slow, the real estate market follows suit. Homes sitting on the market longer is an indicator of a sluggish market. This is mainly due to high interest rates, which causes an affordability issue for buyers.

I wanted to share this video from Yahoo Finance with you because I think it explains the challenges of a sluggish real estate market well. To sum up, buyers have lots of challenges—affordability due to high home prices, inflation, and high interest rates. Also, there are inventory constraints, which are projected to continue throughout 2025. However, the buyers who are submitting offers on homes in 2025 have come to terms with the state of the real estate market and are not standing on the sidelines. This is all important information for sellers to understand.

Tactics for Selling

First, sellers must understand that prices are decreasing. Home values are still appreciating but at a more modest level. Gone are the days of bidding wars and over-asking offers. In fact, in Montgomery County, 74% of homes sold in December 2024 below asking. Therefore, make sure that your home is priced for the current conditions. Otherwise, your house might sit on the market without any interest or offers.

Second, sellers need to understand the challenges buyers face. Realizing the affordability challenge alone can help the seller increase the appeal of the home for the buyer. This will help make your home more attractive. How can you “sweeten the deal”? Sellers can offer to cover a portion of closing costs. In your contract, you can state that you will cover “up to” an agreed-upon amount. Sellers can also offer to include personal goods in the sale. The refrigerator, washer and dryer, or hot tub are examples of personal property that buyers often want to stay with the house. After a home inspection, sellers can also agree to cover any repairs needed. These are three tactics to make buying your home more attractive.

Lastly, sellers need to adjust their expectations. Again, this goes back to coming to terms with the current market. You want your home to sell as quickly as possible with the highest price possible. The average home in Montgomery County, Texas is on the market for 56 days. Compared to the average home in the United States, this is 14 days faster. Without beating a dead horse, sellers must price their homes competitively.

Goins Realty

Having an experienced real estate agent is paramount. If you are looking to sell a home or property, consider Goins Realty to list your house. Mike Goins or one of his associates would love to help you. Call 936-444-5929 to discuss. They know the Lake Conroe area and can help you price your home fairly as well as help you understand the current local real estate market. There are buyers. There is likely no reason your home cannot sell in the sluggish market of 2025.