Back in my day, a handshake sealed a deal, a dollar bought you lunch and a newspaper, and a house was something you lived in — not something you bid for like a Picasso at Sotheby’s. But now? Well, welcome to 2025, where buying a house is about as simple as brain surgery during a bumpy stagecoach ride.
The housing market’s got more twists than a rope you left in the trunk of your car twenty years ago — and just about as trustworthiness. Realtors are squabbling over commissions, websites are gatekeeping listings and the folks who just want a place to call home are left wondering if they need a law degree, a crystal ball, and a small inheritance just to make an offer.
It is a brave new market, the game’s changed — but the stakes remain the same: freedom, stability, and maybe a quiet porch to sit and watch the world go mad.
Let’s dive deeper into this topic.
1. The Old Way of Buying a Home (Pre-August 2024)
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Traditionally, the seller paid the commissions for both their own listing agent and the buyer’s agent.
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A standard 6% commission was split — 3% to the listing agent, 3% to the buyer’s agent.
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Buyers didn’t directly pay their agents, making it easy to hire one.
2. The New Rule (Post-August 2024)
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A legal shift now requires buyers and sellers to negotiate separately with their own agents.
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Buyers must pay their agents out-of-pocket, typically 3% of the purchase price.
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On a $500,000 home, that’s $15,000, now paid by the buyer.
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3. Buyers Push Back
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Many buyers now opt to skip buyer agents to save money.
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They use platforms like Zillow and Redfin to search for homes themselves.
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The perceived value of a buyer’s agent has diminished, unless the agent offers significant negotiation skill or saves time.
🧩 Realtor Workarounds and the Tech Pushback
4. Realtors Try to Regain Control
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Some agents exclusively listed homes on the MLS (only accessible to agents), and delayed listings on public sites like Zillow or Redfin.
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This move was designed to steer buyers back to agents for access to listings.
5. Zillow and Redfin’s Response
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Both platforms declared they will no longer list homes that are not publicly shared through the MLS first.
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Their stance: all buyers deserve equal access to all listings.
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This increases pressure on realtors to stop playing “access control” games.
📉 A Market Already Struggling
6. Sales Volume Has Collapsed
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From 6.1 million home sales in 2021 to around 4 million in 2024 — a 33% drop.
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Fewer sales = less income for realtors.
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Market slowdown stems from high prices, high mortgage rates, and limited affordable inventory.
💰 The Affordability Crisis
7. Prices and Mortgage Rates Have Exploded
| Year | Median Price | Mortgage Rate | Monthly Payment |
|---|---|---|---|
| 2020 | $329,000 | ~3% | ~$1,380 |
| 2024 | $420,000 | ~7% | ~$2,800 |
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Mortgage payments have more than doubled, while median incomes rose ~20%.
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Result: Massive affordability gap for new buyers.
🚫 Why People Aren’t Selling
8. Locked-In Low Rates
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Many homeowners refinanced or bought when rates were 2–4%.
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They’re reluctant to give up low rates for today’s 7% loans — creating a “golden handcuff” effect.
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Homeowners stay put → low inventory.
🧱 Builders Face Hurdles Too
9. New Construction Is Slowing
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Builder confidence has fallen to a 7-month low.
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Causes:
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Tariffs on imported building materials (like Canadian lumber).
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Labor shortages, worsened by worker deportations.
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Rising construction costs → fewer affordable new homes.
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🧨 The Perfect Storm
10. Agents Under Siege
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Agents now face:
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Legal pressure from commission lawsuits.
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Market pressure from slower home sales.
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Competitive pressure from buyers skipping agents.
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Platform pressure from Zillow and Redfin enforcing transparency.
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🧠 Key Takeaways for Buyers and Sellers
11. Smart Home Buying Principles
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Don’t buy based on emotion — buy when you can truly afford it.
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Requirements:
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20% down payment.
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Ability to save and invest while paying your mortgage.
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Budget for furnishing, moving, and upgrades.
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A home is not an investment — it’s a liability unless rented out.
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Want to build wealth? Buy rental properties, not personal residences.
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12. Understanding Supply and Demand
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More demand than supply → prices rise.
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More supply than demand → prices drop.
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Right now? Low supply, especially for affordable homes, is propping up prices even as buyers struggle.
🌐 Global Factors in the Background
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Tariffs and trade tensions (especially with China) are driving up material and borrowing costs.
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Bond yields are rising (partly from concerns over China dumping U.S. debt), which pushes mortgage rates up.
💡 Final Thoughts (Expanded Wisdom)
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The real estate game has changed. Buyer agents are now a luxury, not a given.
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Digital platforms have become gatekeepers, forcing transparency in a once-exclusive world.
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If you’re a buyer: wait for the right house, but don’t try to time the market.
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If you’re an investor: own assets that generate income and appreciate over time — that’s where the real wealth is.
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Above all, stay informed, because every aspect — from policy to international economics — is now woven into the American dream of homeownership.
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