Inventory Continues Rising, But Growth Is Slowing
In July, active listings surged 24.8% compared to last year—the 21st consecutive month of inventory growth—hitting over 1.1 million active listings. Still, total inventory remains about 13.4% below pre-pandemic levels Realtor.
This signals progress toward market balance, though the pace of improvements appears to be tapering.
Homes Are Staying on the Market Longer
The median time homes spent on the market was 58 days—7 days longer than last July, marking the first time this metric has surpassed pre-pandemic norms Realtor. Slowdowns are notable in Western and Southern regions, with homes lingering significantly longer compared to a year ago Realtor.
Prices Holding + Regional Market Shifts
The national median list price was $439,450, up just 0.5% year-over-year—showing steady but modest growth Realtor. However, many major metros—especially in the South and West—are seeing declining year-over-year prices Realtor.
Quarterly and Annual Price Insights by Region
According to Clear Capital’s July Home Data Index:
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Q3 (vs Q2): Prices rose 1.7% nationally, and 3.1% year-over-year ClearCapital.com, Inc.
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Best Performers: Northeast (+3.1% quarterly; +6–8.5% annually in areas like Rochester and NYC). Midwest also strong at +3.1% quarterly and +4.9% annually ClearCapital.com, Inc.
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Softest Regions: South saw modest gains (+0.9% qtr, +1.1% annually); West lagged behind (+0.4% qtr, +1.1% annually), with metros like Miami and Phoenix seeing declines ClearCapital.com, Inc.
Forecast Signals: More Inventory, Slight Price Pressure
Zillow forecasts modest year-end home price declines (~2%) and a 2.5% boost in total home sales over 2024. Inventory is expected to approach pre-pandemic norms Zillow. Even rental growth is slowing in response Zillow.
Economic Concerns and Buyer Sentiment
Moody’s warns high mortgage rates (near 7%) could dampen economic growth. Housing price growth is projected to be minimal: +0.5% in 2025 and +1.2% in 2026. Markets such as Miami, Orlando, Nashville, and Dallas may even see price declines exceeding 5% MarketWatch.
Meanwhile, Redfin reports ongoing price declines in 14 of the 50 largest metro areas. Buyer leverage is increasing through concessions, as nearly 44% of home sales included them in early 2025 Business Insider.