The U.S. housing market is shifting gears, moving away from the intense competition of recent years. Data from June 2025 indicates a significant rise in available homes, a slowdown in price appreciation, and an increase in seller willingness to negotiate. This cooling trend suggests a market rebalancing, offering more opportunities for prospective buyers.
Key Takeaways
- Inventory Surge: Housing inventory has reached multiyear highs, with Realtor.com reporting over 1 million homes for sale, a 28.9% year-over-year increase. Zillow noted 1.36 million homes on the market, the highest since November 2019. RE/MAX data also confirms a broad-based inventory increase.
- Price Cuts Normalize: A growing percentage of listings are experiencing price reductions. Realtor.com recorded 20.7% of active listings with price cuts in June, while Zillow reported 26.6%, both record highs for the month.
- Homes Take Longer to Sell: The rapid pace of sales is slowing. Homes are now spending more time on the market, with Realtor.com data showing a median of 53 days, up from 53 days a year ago. Zillow reported a median of 19 days to go under contract, an increase from previous years.
- Price Growth Stabilizes: Despite increased inventory and slower sales, national home prices have remained relatively stable. Realtor.com reported a 0.2% year-over-year increase in the median listing price, while RE/MAX saw a 2.1% increase in the median sales price.
Inventory Reaches Multiyear Highs
After years of constrained supply, the U.S. housing market is experiencing a notable uptick in inventory. Realtor.com data reveals that the number of homes actively listed for sale in June surpassed one million, marking a substantial 28.9% increase compared to the previous year. This marks the 20th consecutive month of annual inventory growth, signaling a significant shift in market dynamics. Zillow’s findings corroborate this trend, indicating 1.36 million homes available in June, the highest figure since November 2019, representing a 17% year-over-year rise. This increase is attributed to both more new listings entering the market and homes remaining available for longer periods.
Sellers Adjust Expectations with Price Cuts
With a greater selection of homes available and a more measured pace from buyers, sellers are increasingly adjusting their pricing strategies. Realtor.com reported that 20.7% of active listings saw price reductions in June, the highest rate recorded for that month. Zillow’s data indicates an even higher figure, with 26.6% of listings experiencing price cuts, a record for any June since tracking began in 2018. This trend is particularly evident in previously high-demand markets like Phoenix, Denver, and Nashville, where inventory has surged and homes are staying on the market longer.
Homes Spend More Time on the Market
The era of homes selling within days appears to be receding. In June, the typical home spent 53 days on the market, an increase of five days from the previous year, according to Realtor.com. While still indicative of a healthy market, this aligns more closely with pre-pandemic transaction timelines. Zillow’s data shows a median of 19 days for homes to go under contract, up from 15 days in 2024 and 11 days in 2023, further underscoring the trend of longer selling periods.
Price Growth Moderates
Despite the increased inventory and slower sales velocity, home prices have not experienced significant declines. The national median listing price in June was approximately $440,950, showing a modest 0.2% increase year-over-year. RE/MAX reported a median sales price of $440,000, a 2.1% rise from the previous year. This stabilization in prices, coupled with increased inventory, suggests a market moving towards a more balanced state.
Implications for Buyers and Sellers
The current market conditions present a more favorable environment for buyers, offering a wider array of choices, reduced competition, and enhanced negotiation power. Buyers can now take more time to thoroughly inspect properties and evaluate pricing. For sellers, the market demands a more strategic approach, emphasizing competitive pricing, effective staging, and flexibility in negotiations to attract buyers in a less frenzied environment.