July 2025 Housing Market Trends Report: Monthly Update

July 2025 saw a significant increase in the inventory of homes for sale, reflecting the 21st consecutive month of growth and the third consecutive month with over 1 million active listings. The post-pandemic high inventory reached remains below pre-pandemic levels by approximately 13.4%.

The total number of unsold homes, including those under contract, saw a 16.9% year-over-year increase. However, pending home sales, which are homes under contract, decreased by 3.0% year-over-year. Newly listed homes experienced growth of 7.3% compared to the previous year but declined for the third consecutive month.

Homes spent a median of 58 days on the market, an increase of five days from the previous month and seven days longer than a year ago. The national median list price for homes reached $439,450, indicating a 0.5% increase since the previous year, aligning with 2023-2024 levels. Additionally, the median price per square foot witnessed a 0.5% year-over-year increase. Price cuts were reported on 20.6% of listings, slightly down from the previous month, marking the first monthly decrease in 2025.

The US housing market showed steady rebalancing in July, with increasing active listings for the 21st consecutive month, providing buyers with more choices. However, the growth in inventory is showing signs of slowing, and new listings decreased month-over-month for the third time in a row. Properties are now taking longer to sell, with the national median time on the market surpassing pre-pandemic norms for the first time since 2020.

Regional disparities are still prominent in the current market. The South and West regions experienced the most substantial inventory gains and market slowdowns, characterized by longer time on market and more frequent price reductions. In contrast, the Northeast and Midwest regions remain relatively tighter but are gradually transitioning to more buyer-friendly conditions.

A significant finding in this month’s report is the growing number of markets witnessing notable price declines. In July, list prices dropped year-over-year in 33 of the nation’s 50 largest metros, with the most considerable declines observed in Southern and Western markets like Miami, Austin, and Los Angeles. Moreover, prices in 19 of these metros have fallen below their peak levels from July 2022, indicating an ongoing post-pandemic housing correction in select markets.

Overall, July 2025 provided homebuyers with an expanded inventory to choose from, as the number of active listings exceeded 1.1 million for the third consecutive month. While inventory growth has been consistent for over a year, the rate of increase is starting to slow down, hinting at a potential stall in the post-pandemic inventory recovery. Despite the increase in inventory, buyer activity showed less enthusiasm, with pending home sales declining by 3% year-over-year.

Across all major US regions, inventory recorded growth in July, albeit at varying rates. The West and South regions saw the highest inventory gains, while the Midwest and Northeast regions continued to lag significantly. When considering the recovery of inventory since the pandemic, regions like the West and South have made progress, whereas the Midwest and Northeast are still far from pre-pandemic levels. In terms of new listings, there was a 7.3% year-over-year increase, although there has been a monthly decline since April. This year’s Spring home-listing season did not see the expected surge in new listings, possibly indicating seller hesitancy amid market uncertainties.

Clearly, the housing market in July showcased a dynamic landscape with shifting inventory patterns, longer selling times, and varying market conditions across regions. Buyers benefited from increased options while sellers navigated evolving market dynamics, highlighting the need for informed decision-making in today’s real estate landscape.