On August 28, 2025, South Korea’s central bank, the Bank of Korea (BOK), opted to keep its benchmark interest rate unchanged at 2.5 percent, marking the second consecutive meeting where rates have been held steady. The decision, made during the Monetary Policy Board’s session in Seoul, underscores the bank’s cautious approach amid mounting concerns over rising housing prices and household debt, according to a report from Yonhap News Agency.
The BOK’s move comes after a period of monetary easing that began in October 2024, during which the central bank cut the key rate by a total of 100 basis points, with the most recent reduction occurring in May 2025. The intention behind these cuts has been to support economic growth, but with financial stability now at the forefront, the bank is treading carefully. The persistent threat of a housing bubble and the ballooning debt held by South Korean households have become central issues that policymakers cannot ignore.
South Korea is not alone in facing turbulence in its housing market. Across the globe, the United States is grappling with its own set of challenges. Only 28% of Americans who planned to buy a home last year succeeded, according to recent figures cited by multiple sources. The process of buying a home has become more stressful and competitive than ever, with buyers often feeling pressured to waive home inspections to make their offers more attractive. This trend, which took off during the COVID-19 pandemic, has continued to accelerate in 2025.
Kelly Spurlock, president of the Buffalo Niagara Association of Realtors, explained the shift: “It used to be more than five years ago, that most of the time when a buyer bought a house, they did get an inspection. But as the market has been super competitive for the last five years, it has been less, fewer buyers that are getting those inspections.” The National Association of Realtors began tracking inspection waivers during the pandemic, and the data is telling. In April 2021, 25% of buyers waived inspections; by June 2022, this figure peaked at 30%. After a brief lull, the rate is once again on the rise.
For sellers, offers that skip the inspection process are appealing. As Spurlock put it, “It can make your offer more competitive. It can make it look better to a seller.” The underlying reason is straightforward: inspections can reveal issues that might prompt renegotiations on price or delay the sale. Sellers, eager for smooth transactions, increasingly favor bids without these contingencies.
Despite the trend, Spurlock and other real estate professionals continue to advise buyers to obtain inspections whenever possible. She outlined some workarounds: “If you're not able to get an inspection into the offer that you make, sometimes you can do an inspection even before you place the bid with the seller's permission, or you could do an inspection right after closing. So, you know, even though you already own the house, at least they can highlight if there's any issues that need to be addressed so they don't become major concerns. There's also home warranties you can purchase.”
Legislation has struggled to keep up with these market shifts. In New York, for instance, there is no law preventing sellers from requiring buyers to waive inspections as a condition of sale. A bill introduced by Assemblymember Monica Wallace last year sought to address this gap, but it failed to gain traction in Albany.
Meanwhile, on Florida’s Gulf Coast, the housing market is experiencing a different kind of strain. The region, which saw home prices soar during the pandemic as people flocked to the Sunshine State, is now seeing those prices tumble. Cape Coral has emerged as one of the most challenging places to sell a home, according to a Yahoo Finance report. The numbers are sobering: about 8% of homeowners in the area owe more on their mortgages than their homes are currently worth, and there are more than 6,000 homes listed for sale in Cape Coral alone.
For buyers like Tim Kirschner, the glut of available homes represents opportunity. “It's definitely a good sign for us,” Kirschner said. “If prices continue to go down, it would definitely be a good time to buy.” Yet, not everyone sees doom and gloom in the data. Mario Dormayer of Top Florida Realty argues that the market is still fundamentally strong, albeit overpriced: “There is opportunity in every market. I don't really think it is a bad market. It is a market that is still priced very high.” Dormayer emphasized the need for realistic pricing: “What we really need in today's market is value. Properties listed at a fair price.”
As sellers struggle to adjust, many have turned to renting out their properties instead of selling. However, even the rental market has cooled, thanks to a surge in new apartment construction. Dormayer observed, “The listings that just don't sell, they seem to be popping on the market for rent. Sometimes I wonder where all these people go to work and make a living to pay these very high rents.”
The fallout from the COVID-19 homebuying frenzy is becoming increasingly apparent. Dennis Pearlman, a wealth management consultant, noted that many buyers overpaid during the pandemic and are now unable to recoup their investments. “People who bought a home sight unseen, people who bought a home to escape COVID to come to 'safe' Florida, probably wasn't that great of an investment decision,” Pearlman said. Still, he remains optimistic about the future: “If we get through this hurricane season where we don't get hammered again, then homeowners' rates will come down. We're going to go back to the top of the good guy list.”
Looking ahead, there is widespread speculation about the Federal Reserve’s next move. President Trump has publicly called for a dramatic 3% cut in interest rates, though such a move is widely seen as unlikely. However, analysts and market watchers suggest that a more modest reduction—perhaps a point or less—could be in the cards as early as September 2025. Pearlman believes that lower rates would boost buying power: “There is good debt and bad debt. Debt for your mortgage at 6.5% is pretty good debt to have.” Kirschner, the would-be buyer, is watching closely: “We're going to be looking at the low points and rates when the market is showing it's a good time to buy.”
Back in South Korea, the BOK’s decision to pause further rate cuts reflects a global pattern: central banks are walking a tightrope between supporting economic recovery and keeping financial risks in check. The world’s housing markets, battered by pandemic-era volatility and now adjusting to new realities, remain at the center of policymakers’ concerns. Whether it’s the challenge of buying a home in the United States, the struggle to sell in Florida, or the quest for stability in Seoul, the housing market’s twists and turns continue to shape the economic outlook for millions.
As the summer of 2025 draws to a close, buyers, sellers, and policymakers alike are left navigating a landscape that is as unpredictable as ever—but also, perhaps, full of new possibilities for those willing to adapt.
