Home sales numbers varied in the summer of 2025, with important distinctions between U.S. regions.

On a monthly basis, the Midwest and West experienced growth in sales, while the Northeast and South saw declines. 

Looking at the annual trend, sales were up in the Midwest and South but down in the Northeast and West.

With those trends in mind, many homebuyers are looking to the fall for some relief in affordability.

“Home sales have been sluggish over the past few years due to elevated mortgage rates and limited inventory,” said National Association of Realtors (NAR) chief economist Lawrence Yun. “However, mortgage rates are declining and more inventory is coming to the market, which should boost sales in the coming months.”

Warren Buffett’s Berkshire Hathaway HomeServices, however, explained a serious problem that still confronts first-time homebuyers.

“Even if they can afford to buy a home, many first-time homebuyers aren’t able to save enough to make a substantial down-payment and rely heavily on subsidies such as grants, gifts from friends and relatives, down-payment loans, government programs, and down-payment assistance,” wrote the company on its blog.

Housing market activity improved during summer 2025

Trends in some of the top housing market indicators began to show signs of improvement during the summer of 2025, according to the U.S. Department of Housing and Urban Development.

• Existing home sales rose 2.0% in July to 4.01 million units, up from 3.93 million in June and 0.8% higher year-over-year.
• Single-family housing starts hit 939,000 units in July, up 2.8% month-over-month and 7.8% year-over-year, while multifamily starts reached 470,000 units, up 11.6% month-over-month and 27.4% year-over-year.
• Total housing starts climbed to 1.428 million units in July, rising 5.2% from June and 12.9% higher than one year ago.
• The Federal Housing Finance Agency (FHFA) seasonally adjusted house price index fell 0.2% month-over-month in June but rose 2.6% year-over-year.
• The FHFA seasonally adjusted index rose to 11.6% above its June 2022 peak.
• New home inventory fell 0.6% month-over-month to 499,000 units in July but rose 7.3% year-over-year, supporting 9.2 months of sales.
• Existing home inventory rose 0.6% month-over-month to 1.55 million units in July, up 15.7% year-over-year, with supply dropping to 4.6 months from 4.7.
• The 30-year fixed-rate mortgage rates dropped to 6.56% in late August, down from 6.67% in July and well below the October 2023 peak of 7.79%.

Berkshire Hathaway explains top priorities for first-time homebuyers

Heading into the fall, first-time homebuyers are increasingly drawn to properties that feature eco-friendly enhancements designed to lower expenses and support sustainability, Berkshire Hathaway wrote. 

In regions where water scarcity is a concern, low-maintenance landscaping options are gaining favor over traditional lawns that demand regular irrigation and upkeep. 

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To appeal to this environmentally conscious demographic, sellers are encouraged to incorporate upgrades such as energy-efficient windows and appliances, enhanced insulation, and other cost-saving improvements.

Berkshire Hathaway also notes a rising interest in multi-generational living arrangements. 

Homes that accommodate extended families not only foster shared caregiving for children and elderly relatives but also offer financial benefits.

Related: Fannie Mae predicts major mortgage rate change coming soon

Older generations may bring equity from previous residences, and the household can pool resources to manage expenses more effectively.

“According to NAR, 17% of homes purchased in 2024 were multi-generational, an all-time high, highlighting how this arrangement is increasingly popular and practical,” Berkshire Hathaway noted.

Berkshire Hathaway highlights top priorities for homebuyers

• Bedroom count is a key priority for accommodating family needs.
• Garages, luxury primary bedrooms, front porches, and large yards are also high on buyers’ lists.
• Buyers with more flexible budgets are seeking upscale and design-forward features in their homes.
• Copper and brass accents are important to living spaces.
• Entertainment-focused spaces such as beverage bars and game rooms are increasingly sought after by buyers.
• Outdoor fun zones such as kitchens, pools, and courts are popular when space and budgets allow.
• Buyers across generations value short commutes and access to shopping, services, and recreation.
• Older buyers often look for homes that support aging in place with comfort and accessibility.

Related: Dave Ramsey shares key insight on mortgage rates