Q3 2025 Home Inspection Market Outlook

The housing market has finally reached a pivotal turning point. After years of frenzied buying, skipped inspections, and astronomical prices, we're witnessing a much-needed stabilization that brings good news for both homebuyers and inspection professionals.

Our latest market analysis reveals that 44% of current listings have sat for over 60 days—representing a staggering $700 billion in inventory. This extended time on market means sellers are becoming realistic about pricing, with the average sale price now falling below asking. The days of waived inspections and desperate bidding wars appear to be fading into memory.

Florida continues to function as our market crystal ball. Areas like Orlando, Tampa, and Cape Coral that saw appreciation rates 11% above the national average are now cooling significantly. What happens in the Sunshine State typically rolls across the country within six months, signaling better days ahead for inspection businesses nationwide as buyers regain negotiating power.

Meanwhile, the home inspection industry faces a technological revolution as AI reshapes our profession. While some fear these changes, we see opportunity for those willing to adapt. The most successful inspectors will embrace AI tools to enhance efficiency while maintaining the irreplaceable human expertise that clients trust. Those clinging to outdated methods—like handwritten reports—may find themselves increasingly marginalized as the industry evolves.

Construction trends show interesting patterns with high-density luxury apartments dominating many areas rather than single-family homes. And contrary to predictions, the "gray wave" of Baby Boomers selling their homes hasn't materialized, with most choosing to age in place. Interestingly, Gen Z shows remarkable enthusiasm for homeownership despite market challenges, potentially driving future transaction volumes.

The worst appears behind us. The mass exodus of inspectors has largely stopped, and even newer professionals are finding their footing. For established inspection businesses willing to embrace change while maintaining quality, the future looks increasingly bright. Are you positioning yourself to thrive in this evolving landscape?

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*The views and opinions expressed in this podcast, and the guests on it, do not necessarily reflect the views and opinions of Inspector Toolbelt and its associates.