What's happened
As of June 2025, the U.S. housing market shows a significant imbalance, with nearly 500,000 more homes for sale than buyers. This shift, driven by high mortgage rates and economic uncertainty, is pressuring sellers to lower prices. Despite this, home prices continue to rise, marking a complex market landscape.
What's behind the headline?
Current Market Dynamics
- Buyer Advantage: With 34% more sellers than buyers, prospective homebuyers are in a stronger negotiating position. This shift allows buyers to seek better terms and prices.
- Price Trends: Despite the increase in inventory, home prices have shown slight growth, with the median sales price reaching $416,900. However, forecasts suggest a potential decline of 1% by year-end due to the imbalance.
- Economic Factors: High mortgage rates, currently around 6.89%, continue to impact affordability, leading many potential buyers to wait for better conditions.
- Regional Variations: Markets like Miami are experiencing the largest gaps between buyers and sellers, while areas like Newark remain competitive for sellers.
Future Outlook
- Price Adjustments: Sellers may need to adjust their expectations and pricing strategies to attract buyers in this shifting landscape.
- Market Recovery: As economic conditions stabilize, there may be a rebound in buyer activity, particularly if mortgage rates decrease further.
What the papers say
According to Business Insider UK, Robert Reffkin highlights that the current housing inventory is at its highest in five years, providing buyers with more options. Conversely, the NY Post notes that the number of sellers significantly exceeds buyers, indicating a market slowdown. AP News emphasizes that this imbalance is pressuring sellers to lower prices, while The Independent points out that sellers need to be realistic about pricing expectations. Gulf News discusses the resilience of Abu Dhabi's market, contrasting it with the U.S. market's challenges, showcasing differing regional dynamics.
How we got here
The U.S. housing market has been experiencing a shift since late 2023, when rising mortgage rates began to deter buyers. As of April 2025, the number of sellers has dramatically outpaced buyers, creating a buyer's market not seen in over a decade.
Go deeper
- What factors are driving the current housing market changes?
- How are sellers responding to the increased inventory?
- What should buyers consider in this market?
Common question
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Why Are Home Prices Still Rising Despite More Homes for Sale?
The U.S. housing market is currently facing a unique situation where the number of homes for sale significantly exceeds the number of buyers. This imbalance raises questions about why home prices continue to rise despite the apparent oversupply. Understanding the factors at play can help potential buyers and sellers navigate this complex market.
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What Are the Latest Trends in the US Housing Market?
The US housing market is undergoing significant changes as of June 2025, with a notable shift towards a buyer's market. This transformation raises questions about the factors influencing home prices, the impact of high mortgage rates, and the types of properties gaining popularity. Below, we explore these pressing questions to help you navigate the current real estate landscape.
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