So what’s really going on? Let’s break down the key changes affecting homebuyers and sellers—and share a few grounded strategies to help you make the right decision for your finances.

1. The Big Commission Shake-Up

In August 2024, a major legal change flipped the traditional real estate commission model on its head.

Historically, home sellers paid both their own agent and the buyer’s agent. Now, buyers must separately negotiate and pay their own agents. This might sound fair in theory—but in practice, it’s made buyers hesitant to use agents at all.

Why? Imagine paying 3% commission on a $500,000 home—that’s $15,000 out of pocket, on top of your down payment and closing costs. It’s a hard pill to swallow, especially for first-time buyers.

Realtors tried to adapt by keeping listings private—sharing them only through the MLS to encourage buyers to use agents. But Zillow and Redfin pushed back.

2. Zillow and Redfin Push for Transparency

To level the playing field, Zillow and Redfin now refuse to publish listings that aren’t made publicly available through the MLS. Their reasoning? All buyers should have access to all listings, not just those working with agents.

Redfin’s CEO even stated that “buyers deserve access to the full market,” reinforcing a shift toward greater transparency—but also creating tension between agents and listing platforms.

3. Home Sales Are Down—Way Down

This legal drama comes at a time when home sales have already dropped 33% since 2021, falling from 6.1 million homes to around 4 million in 2024. That’s the lowest level in 30 years.

Why? Buyers are struggling with affordability, and sellers with low mortgage rates don’t want to give them up. Real estate agents, once riding the high of a post-pandemic boom, are now feeling the crunch.

4. Mortgage Rates and Home Prices Are a Painful Combo

In 2020, you could get a 30-year mortgage for around 3%. In 2025, you’re likely looking at 7% or higher.

That change has more than doubled monthly mortgage payments on a median-priced home, which jumped from $329,000 in 2020 to $420,000 in 2024.

Here’s a rough example:

• In 2020: $329,000 home = $1,380/month
• In 2024: $420,000 home = $2,800/month

Meanwhile, median income has only increased by 20%—which doesn’t come close to keeping up with the housing cost spike.

5. Affordable Homes Are Still in Short Supply

While overall inventory has increased slightly, affordable homes remain scarce. Many current homeowners are sitting on ultra-low mortgage rates (2.5%–4%) and don’t want to trade them in for much higher payments.

At the same time, builder confidence is down, thanks to labor shortages and rising construction costs—some caused by tariffs on materials like Canadian lumber.

6. The Economy Isn’t Helping Either

Wages aren’t keeping pace with inflation, and essentials like groceries, transportation, and energy have all gone up.

That means fewer people can save enough for a down payment—let alone afford the ongoing costs of homeownership.

Higher mortgage rates are also tied to global market pressures, including fears that China may dump U.S. Treasuries. When demand for U.S. bonds drops, bond yields go up—and so do mortgage rates.

7. So, Should You Still Buy a Home?

Here’s some real talk: Buying a home can still be a good move—but only if you do it on your terms.

Ask yourself these questions:

• Can I comfortably afford the 20% down payment, plus closing and moving costs?
• Will the monthly mortgage payments fit in my budget without relying on credit cards or dipping into savings?
• Am I buying this house because it suits my life—or because I think it’s a “smart investment”?

If you answered “yes” to all of those, great—you’re ready.

If not? Consider renting for now or saving more aggressively. Owning a home is not your only path to wealth. Rental property investing, index funds, or REITs (real estate investment trusts) are often better long-term options for building wealth without overextending yourself.

Final Thought: Buy a Home to Live In—Not Just to Get Rich

In this market, buying a home should be about stability, comfort, and lifestyle, not chasing returns. The real estate market is changing—fast—and financial security matters more than bragging rights.

So take your time. Crunch the numbers. And most of all, don’t let hype or pressure steer one of the biggest financial decisions of your life.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence

The post Why Buying a Home in 2025 Feels So Hard appeared first on ROI TV.

Rising Home Prices: Who’s Really Winning?

The numbers don’t lie: home prices in the U.S. have surged by 6.5% over the last year. To put that into perspective:

• In 2010, the average home sale price was $272,000.
• By the end of last year, that number had soared to $492,000.

But here’s the kicker—it’s not just first-time buyers feeling the pinch. Even existing homeowners, who should theoretically benefit from high prices, face their own challenges. Selling an overpriced home means buying another one—often with sky-high mortgage rates and increased property taxes.

Realtors and Their Influence: More Than Just Middlemen

Not all real estate agents are Realtors, but all Realtors are real estate agents who belong to the NAR—and that membership comes with perks, like exclusive access to the Multiple Listing Service (MLS).

The NAR operates almost like a union, ensuring agents don’t compete on commission rates. This means that:

• The industry-standard commission rate is 6%, regardless of the market.
• That commission is split between the listing agent and the buyer’s agent.
• As home prices have doubled, so have commissions—outpacing inflation by a staggering 120%.

This arrangement has historically kept commissions high and competition low—until now.

The Antitrust Lawsuit That Could Change Everything

In a groundbreaking lawsuit, the National Association of Realtors was hit with a $418 million fine and ordered to change its commission practices. The lawsuit’s outcomes include:

• Removing buyer agent compensation information from the MLS to encourage fair competition.
• Potentially breaking the long-standing 6% commission standard, which could reshape the industry.

For buyers and sellers, this could mean lower transaction costs. But for Realtors? A potential hit to their bottom line.

Why First-Time Home Buyers Are Disappearing

The share of first-time homebuyers has plummeted since 2010—and the reasons are clear:

• The average commission on a home sale now equals nearly half of the average American’s pre-tax salary.
• Rising transaction costs and record-high interest rates have made it nearly impossible for young buyers to enter the market.

As a result, most home purchases are now made by those upgrading or downsizing—not first-time buyers.

Struggles Within the Real Estate Industry

Despite higher commissions, many Realtors are struggling to stay afloat:

• Slow sales are making it difficult for agents to cover basic expenses.
• Some agents are cutting commission rates to attract clients, increasing competition within the industry.
• The MLS system itself is under scrutiny, accused of fueling price growth and encouraging biased advice.

Online Platforms: Disrupting Traditional Real Estate

Tech platforms like Zillow and Redfin are transforming how people buy and sell homes:

• Buyers now rely on self-research instead of agents for information.
• Some agents outside the NAR are offering fixed-price sales, pressuring traditional agents to justify their hefty 6% commission.

As these platforms grow, they could empower more homeowners to sell independently—potentially attracting more institutional investors in the process.

The Rise of Institutional Investors: A New Market Force

Institutional investors are reshaping the housing landscape:

• In Q3 2023, they purchased 25% of homes flipped in the U.S.
• Independent investors accounted for 44% of all home sales.

If transaction costs decrease, more institutional investors could flood the market, further driving up home prices and making homeownership even more challenging for everyday buyers.

What’s Next for the Housing Market?

The antitrust lawsuit against the NAR, combined with rising home prices and market shifts, signals a turning point for U.S. real estate. Here’s what to watch for:

1. Lower Commission Rates: Homebuyers and sellers could save thousands if the standard 6% commission drops.
2. Increased Market Competition: Online platforms and fixed-rate services may force traditional agents to adapt.
3. More Institutional Investment: Reduced transaction costs could attract larger investors, driving up prices further.
4. Potential Market Reforms: The lawsuit could inspire additional reforms aimed at increasing transparency and fairness.

The Bottom Line: A Market in Flux

The real estate market is undergoing seismic shifts. Rising prices, changing commission structures, and increased competition from online platforms are reshaping how homes are bought and sold. For first-time buyers and everyday homeowners, these changes could either level the playing field—or make it even harder to get a foot in the door. As the dust settles from this historic lawsuit, one thing is clear: The future of U.S. real estate will look very different from the past.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post How Rising Home Prices and a Landmark Lawsuit Are Reshaping the Housing Market appeared first on ROI TV.