These are the 10 words that will define real estate in 2025
Prices, mortgages, inventory and more. While we wrote a lot this year, from social media to murder mysteries, these are the 10 words that came up again and again.
While many publications choose a word of the year each December, we can’t possibly describe the complexity of the real estate industry in just one word. So here are the 10 words that kept popping up throughout the year and are having an impact on real estate agents and the buyers and sellers they serve.
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With each entry you’ll also find a recent Inman story to add even more context and insight to your lexical review.
Prices
Home prices started to skyrocket during the pandemic and while the trajectory has slowed through 2025, they are still holding up. While there has been a lot of talk about bubbles and affordability in recent years, prices are still rising in many markets across the country.
READ MORE: If price is king, why are we bringing new offerings to the market in the first place?
If pricing is the driving force behind selling an ad, Jos Ries writes: marketing is the steering wheel. Together they ensure that the deal moves forward.
Mortgage
Although mortgage rates are nowhere near the historic highs of the late 20th century, they still appear high compared to the lows of the early 1920s. Potential buyers’ hopes lived and died with movements in the mortgage market, and President Trump’s ongoing battle with the Federal Reserve this year stemmed largely from the agency’s handling of short-term interest rates, which influence mortgage rates.
READ MORE: The Fed will cut rates for a third time in 2025, but may cut rates just once next year
The 9-3 vote reflects differing views on whether the central bank’s main concern is inflation or rising unemployment, with numbers lagging after the government shutdown.
Inventory
The combination of high levels of home equity and low interest rates left many sellers behind in recent years, but in 2025 more and more homeowners began exploring the market. However, many of them were looking to get the best price for their homes even when their local market didn’t support aggressive pricing — so the stock took repeated hits from deletions.
READ MORE: Listing Leverage: How to Win the Game of Securing Sellers
Agents who wait for offers to fall into their laps will starve, Verl Werkman writes. Cops who execute? They will own their markets.
Affordability
Concerns about affordability have prompted starters to do this postpone their purchasesand their average age is now 40 years. Additionally, first-time buyers’ market share has fallen to nearly half the level we saw in 2008, according to data from the National Association of Realtors.
READ MORE: Falling mortgage rates contribute to affordability and start to bring back buyers: ICE
Lower inventories in some markets have pushed home prices higher in recent months, which will continue to put pressure on many homebuyers unless mortgage rates continue to fall.
Economy
This year has been a tough one for the economy, with the impact of tariffs driving up inflation and job losses creating uncertainty. For potential buyers, that was enough to remain sidelined, especially when combined with the one-two punch of high prices and high interest rates.
READ MORE: 6 housing market predictions for 2026, according to an economist
From mortgage rates to homeownership rates and more, Windermere’s chief economist Jeff Tukker offers tailored insights for 2026.
Mergers and acquisitions
The announcement of Compass’ proposed merger with Anywhere was the latest and biggest salvo in an ever-escalating consolidation trend in the real estate industry. How will this affect the agents involved and what will it do to smaller, indie brokers? Only time will tell.
READ MORE: How boutique brokerages can thrive as major brands merge
Marketing and transformation experts Troy Palmquist And Lauren Hens discuss the future for smaller independent agents in light of rampant consolidation in the real estate industry.
Facts
This year, Inman focused on the importance of data with the rollout of Market image and market trendstools designed to help you visualize your market and track its movements over time. Drill down to the zip code level and see how your micromarket compares to the country as a whole and to other micromarkets in your region.
READ MORE: Stock surge sputters. See how your market is performing
Markets that were bright spots during difficult times are now slowly seeing new listings appear. Dive into local data with Inman’s recurring series of interactive maps and charts.
AI
We’ve been talking about artificial intelligence for years, but this year we started to see the potential of agentic AI for the real estate industry. Whether you believe AI is a tool or a replacement for agents, understanding its development and using it to empower your business is a must, even if you don’t consider yourself a “techie.”
READ MORE: Ridley founder says platforms, not agents, will ultimately be at the heart of the transaction
The cash-and-carry company just secured new funding from lenders including Fifth Wall. CEO Mike Chambers says his company wants to “support agents” who are “unapologetically consumer first.”
Commissions
Since the settlement of the buyer’s commission which started last year, there has been speculation about the impact on agent pay. While industry watchdogs still believe agents are overpaidThe data shows that commissions remain stable following these major industry practice changes.
READ MORE: Buyer’s agent commissions see recovery after settlement
The average commission for buyers’ agents in the third quarter was 2.42 percent, which is still below the 2023 average but higher than rates following the announcement about industry practice changes following the NAR settlement.
Agents
Of course, whether you’re talking about the market, clients or broker moves, it all comes down to agents. What’s best for you, what helps you succeed in building your business and serving your customers: that’s what we’re all about. We loved giving you the best of ourselves in 2025 and we look forward to adding value to your professional life every day in 2026.
READ MORE: At Inman we believe in you, the real estate professional
Real estate embodies the American dream, and as a profession it is filled with people fighting for their communities and their clients.
Email Christy Murdock
