Illinois, US, 21st October 2025, ZEX PR WIRE, As mortgage rates continue to fluctuate and homebuyers face tightening budgets, one question dominates the American real estate conversation: Is the U.S. housing market cooling or finally correcting after years of volatility? According to real estate attorney Eric Sander Chicago, the answer depends largely on where you look and who you ask.

“The national numbers only tell part of the story,” says Eric Sander, partner at Sander Law Offices and a respected figure in the Chicago legal and real estate community. “While some regions are experiencing price drops and slower sales, others especially in the Midwest and parts of the South are showing remarkable stability and even modest growth.”

Sander, who has advised hundreds of clients on residential and commercial property transactions, says the 2025 housing market is best described as fragmented but functional. “We’re not seeing the kind of dramatic downturn many feared at the start of the year,” he explains. “Instead, we’re watching a series of local corrections that are gradually bringing property values back in line with real demand.”

Regional Trends: A Market of Contrasts

Data from the National Association of Realtors (NAR) and regional MLS systems highlight the widening gap between overheated coastal markets and resilient heartland metros. In cities like San Francisco, Seattle, and Austin, home prices have declined between 6% and 10% since early 2024. By contrast, areas such as Cleveland, Indianapolis, and Kansas City have recorded steady appreciation of 2% to 4%.

“Buyers who were priced out of the market during the 2020–2022 boom are now re-entering in regions that never fully overheated,” says Sander. “The Midwest is benefiting from affordability, strong local economies, and a slower pace of life that appeals to remote workers and young families.”

In Chicago, where Attorney Eric Sander’s firm is headquartered, the market remains surprisingly balanced. Median home prices have held steady, and inventory levels have improved slightly compared to last year. “Chicago has never been a speculative market,” Sander notes. “That’s our strength. Prices move based on fundamentals, not frenzy.”

Inventory and Interest Rates: The Twin Levers of 2025

The biggest challenge facing buyers and sellers alike remains the persistent inventory shortage. Nationally, active listings are still about 35% below pre-pandemic levels, limiting buyer options even as demand cools. Builders are cautiously increasing production, but labor shortages and high material costs continue to constrain supply.

Meanwhile, the average 30-year fixed mortgage rate has hovered around 6.5% to 7% for much of 2025, keeping many homeowners from selling. “We call it the ‘golden handcuff’ effect,” Sander explains. “Millions of Americans are sitting on historically low mortgage rates often under 4% so they’re reluctant to trade up and take on higher payments.”

For buyers who can afford to move, this dynamic creates opportunity. “Less competition means more negotiating power,” says Eric Sander Chicago. “We’re seeing a return to inspection contingencies, appraisal discussions, and price flexibility was unheard of during the pandemic frenzy.”

Investor Activity and the Rental Market

While traditional buyers are moving cautiously, real estate investors are quietly expanding their footprints. Institutional investors and private equity firms continue to target single-family rentals in growing suburban areas, particularly in the Sun Belt and Midwest.

“Rental demand remains extremely strong,” Sander says. “Many households simply can’t qualify for mortgages under current conditions, so they’re renting longer. That keeps the rental market competitive, especially for well-maintained single-family homes.”

However, Attorney Eric Sander cautions that investor activity must be balanced against community needs. “In certain neighborhoods, too much investor ownership can reduce opportunities for first-time buyers and create long-term affordability issues,” he explains. “Smart local policies will be key to keeping markets fair and accessible.”

Buyer Sentiment: From FOMO to Caution

Perhaps the most striking shift in 2025 is psychological. The “Fear of Missing Out” that defined pandemic-era buying has been replaced by a more measured, research-driven mindset. According to recent surveys, nearly 70% of potential buyers say they are waiting for prices to stabilize before making a move.

“This new wave of cautious optimism is healthy,” says Eric Sander Chicago. “Buyers are asking better questions, seeking legal advice early, and making decisions based on long-term value rather than panic. It’s a sign of maturity in the market.”

As a real estate attorney, Sander emphasizes the importance of professional guidance at every stage of the process. “Buying or selling property isn’t just a financial decision, it’s a legal one,” he notes. “Clear contracts, clean titles, and well-structured contingencies protect clients from unnecessary risk.”

A Legal Expert’s Perspective

Attorney Eric Sander’s perspective carries weight not only because of his market insight but also his legal acumen. A cum laude graduate of Illinois Wesleyan University with a Juris Doctor from the University of Detroit Mercy School of Law, Sander combines analytical precision with real-world experience. Before founding his practice, he gained hands-on knowledge in foreclosure litigation and property law, experiences that now inform his counsel to homeowners and investors alike.

“Real estate isn’t just about location rather it’s about preparation,” Sander says. “When clients understand the legal and financial implications of each step, they make better decisions and avoid costly surprises.”

Community Commitment Beyond the Office

Beyond his professional achievements, Attorney Eric Sander remains deeply involved in Chicago’s local community. He volunteers with Gigi’s Playhouse and Big Brothers Big Sisters of Chicago, mentors young athletes through Notre Dame College Prep, and coaches youth hockey and basketball. A devoted father, he spends much of his free time supporting his children, Max and Gwen, in their sports pursuits.

“These community connections keep me grounded,” Sander reflects. “They remind me that real estate isn’t just about buildings, it’s about families, neighborhoods, and long-term stability.”

Looking Ahead: A Market of Measured Opportunity

As 2025 enters its final quarter, most analysts including Eric Sander Chicago expect the housing market to remain stable, with modest corrections continuing through 2026. While affordability challenges persist, rising wages and easing inflation may help more buyers re-enter the market.

“This isn’t a crash; it’s a reset,” says Sander. “After years of extreme highs and lows, we’re finally finding equilibrium. That’s good news for buyers, sellers, and communities alike.”

Sander’s advice for anyone considering a move this year? “Stay informed, stay patient, and work with trusted professionals,” he says. “Real estate is still one of the most powerful paths to long-term wealth but only if you approach it with strategy and common sense.”

About Eric Sander Chicago

Eric Sander is a real estate attorney based in Chicago, Illinois, and a partner at Sander Law Offices since 2015. He advises clients across the Chicagoland area on residential and commercial transactions, property disputes, and eviction procedures. A graduate of Illinois Wesleyan University and the University of Detroit Mercy School of Law, Sander combines legal expertise with a deep commitment to community engagement and ethical practice.