A Tale of Two Housing Markets: Why Real Estate Feels So Different Depending on Where You Are (Including Martha’s Vineyard)
For a long stretch during the pandemic, the housing market felt like a game of musical chairs—with too many buyers scrambling for too few homes. Sellers held the cards, homes sold in days, and bidding wars were the norm from coast to coast. But fast-forward to 2025, and the picture is a bit more... complicated.
Some regions—like parts of the South and West—are cooling off fast. Others, including the Northeast and Midwest, still have tight inventory and seller-friendly dynamics. But perhaps the most striking shift is happening in resort and second-home markets like Martha’s Vineyard, where the market hasn’t just cooled—it’s stalled.
In other words, it’s a tale of two markets. Or ten. And knowing which one you’re in makes all the difference.
Buyer’s Market vs. Seller’s Market: A Quick Refresher
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In a buyer’s market, there are more homes than buyers. This gives buyers more choice, more negotiating power, and puts downward pressure on prices.
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In a seller’s market, there are fewer homes than buyers. Homes sell quickly, prices rise, and sellers often field multiple offers.
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A neutral market means supply and demand are more balanced—homes still sell, but neither side has a significant advantage.
According to Zillow’s Buyer-Seller Index, the national housing market has gradually shifted from a red-hot seller’s market to something more balanced. Bidding wars are less common, homes are sitting a little longer, and sellers are making more concessions—like price reductions or help with closing costs.
What’s Causing the Shift? Inventory Tells the Story
The most important driver? Inventory. Just look at how it’s changed across the country:
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The South and West have seen big jumps in inventory, in some cases nearing pre-pandemic levels. That’s why we’re seeing more buyer’s markets emerge in places like Phoenix and Austin.
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The Northeast and Midwest, on the other hand, are still facing inventory shortages. Homes are still in demand, especially where prices remain relatively affordable.
But these trends don’t play out evenly. Even within a single state, you’ll see very different market conditions depending on the area.
Martha’s Vineyard: A Stalled, Not Stabilized, Market
On Martha’s Vineyard, we’re experiencing a slower pace than in recent years—something that’s consistent with many second-home markets across the country. While national data may show signs of balance, the Vineyard’s market remains cautious and decidedly stalled.
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The sharp rise in interest rates led many buyers, especially second-home shoppers, to hit pause.
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Inventory has begun to tick up this spring, with more homes hitting the market as we head into the warmer months.
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But buyer urgency remains low, and activity is uneven across price points and property types.
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Well-prepared, accurately priced homes in desirable locations are still generating interest—but others are lingering.
“Now that it’s spring, we’re seeing more homes come online,” says Jen O’Hanlon of The O’Hanlon Group. “But it’s still a bit too early to say how the summer selling season is going to shake out. Buyers are looking, but they’re definitely more measured than in years past.”
This kind of wait-and-see approach is typical of second-home buyers in uncertain markets. And on the Vineyard, where many buyers aren’t under pressure to move quickly, that dynamic is even more pronounced.
A Micro-Market World: The City vs. Suburb vs. Island Effect
Real estate today is hyperlocal. Just within Massachusetts:
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Boston’s market is seeing a modest rebound as city life picks back up and younger buyers re-enter the market.
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Suburbs are experiencing more balanced activity, with stable pricing and increased inventory.
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Martha’s Vineyard, meanwhile, continues to offer unmatched lifestyle appeal, but without the frenzied buyer pool of recent years.
In this kind of market, context is everything.
What This Means for Buyers and Sellers
📌 Buyers:
You have more time, more options, and in some cases, more leverage. But you still need a local expert to help you spot value—and avoid overpaying in a market that’s adjusting.
📌 Sellers:
It’s no longer “list it and they will come.” You need to be strategic with pricing, presentation, and marketing. A well-prepared listing will still sell—but overpricing or under-prepping could leave it sitting.
Bottom Line: The Market Is Local—and the Vineyard Is Unique
Whether the national media is calling it a buyer’s market, a seller’s market, or a neutral market, what really matters is what’s happening right here.
If you’re thinking of buying or selling on Martha’s Vineyard in 2025, don’t rely on national headlines. Let’s talk about the real story on the ground—and create a plan tailored to your goals.
📩 Reach out to The O’Hanlon Group today. We know this island, this market, and how to help you make a move with confidence.
