Buyers, Selles and Renters – New Real Estate Rules/Trends
Boston Condos for Sale and Apartments for Rent
Buyers, Selles and Renters – New Real Estate Rules/Trends
This has and will be a transformative year for the real estate industry, marked by the ripple effects of major legal settlements, significant tax reforms, and a shifting economic landscape.
1. The “New Rules” of Real Estate Commissions
Following the National Association of Realtors (NAR) settlement in late 2024, 2025 served as the first full year under new operational standards that fundamentally changed how agents are paid.
- Negotiable Fees: Buyer’s agent commissions are no longer listed on Multiple Listing Services (MLS), forcing buyers and agents to negotiate fees upfront.
- Mandatory Agreements: Buyers must now sign a written representation agreement before touring a property, outlining exactly how much their agent will be paid.
- Impact on Costs: While intended to lower costs, reports mid-year showed that average buyer’s agent fees remained largely consistent with historical norms as many sellers continued to cover these costs to attract buyers.
2. Major Federal Tax Reform
The “One Big Beautiful Bill,” signed into law on July 4, 2025, introduced permanent changes to real estate taxation:
- Bonus Depreciation: The law permanently restored 100% bonus depreciation for qualifying properties, reversing a scheduled phasedown that would have dropped the rate to 40% in 2025.
- First-Time Buyer Support: New tax-free savings accounts were introduced to help first-time home buyers save for down payments.
- Preserved Incentives: The bill solidified long-standing benefits like the mortgage interest deduction and increased limits for State and Local Tax (SALT) deductions.
3. Shifting Market Dynamics
- Inventory Surge: Some markets saw a significant “supply glut,” with new home listings in certain cities outpacing buyers at rates not seen since 2013.
- Price Moderation: While national home prices rose roughly 2-3% overall in 2025, many regions in the South and Southwest shifted toward “buyer’s markets” with falling prices.
- Mortgage Stabilization: After years of volatility, 30-year fixed mortgage rates began to stabilize, ending the year around 6.7%, which encouraged a late-year uptick in sales.
Peace be with you
Updated: Boston Real Estate Blog 2025
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