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ccording to Zillow's research, the Southwest is expected to become a buyer's market in 2025, with inventory increasing in relatively affordable regions. This shift is a departure from 2024, when most of the 13 major metro areas with buyer's markets were located in the Southeast. While affordability will still be an issue, Zillow's prediction suggests that buyers will have more leverage in negotiations due to increased housing options.

    Real estate agents agree that the Southwest should be a buyer's market in 2025. Alexei Morgado, founder of Lexawise, attributes this change to an expected boost in housing inventory, giving buyers more choices and lower competition. With sellers having to negotiate with buyers, prices may decrease if interest rates don't drop significantly.

    The Southwest has experienced rapid growth, attracting individuals and businesses, but also leading to oversaturation of new builds. This, combined with higher interest rates and economic factors, may give buyers more negotiation power. Population growth in the region has led to an increase in available options, which could result in better deals for those in the market if interest rates don't drop.

    Real estate experts agree that the Southwest's prolonged development curve, driven by tech businesses relocating and retirees moving to sunnier environments, will lead to a mix of market saturation and declining demand. This is expected to provide consumers with more negotiating power in 2025. Morgado notes that buyers must also consider shifting mortgage rates when navigating the market.