Buyer-Friendly Housing Market Grows as Home Prices Hold Steady

In welcome news for house hunters, the domestic housing market is beginning to show signs of becoming more buyer-friendly, with cooling prices and a growing number of for-sale homes. 

"With inventory growing and one in five sellers slashing prices, the pendulum is swinging back toward a balanced market, as price growth slows and buyers gain more leverage," says Realtor.com® Senior Economic Research Analyst Hannah Jones. 

The listing price of the typical home was flat year over year during the week ending on June 14, and down 0.4% during the first half of 2025, according to the latest Realtor.com Weekly Housing Market Trends Update.

The median listing price per square foot—which adjusts for changes in home size—ticked up 0.7% compared to the same period in 2024. 

Meanwhile, new listings increased 5.7% last week compared to a year ago, showing a slightly faster growth from the previous two weeks.

Home supply expands as selling pace slows

The overall number of homes actively for sale continued on its upward trajectory, increasing 28.1% from a year ago. This represents the 84th consecutive week of annual gains in inventory, offering more choices for would-be buyers.

In terms of raw numbers, there were more than one million properties for sale again last week, marking the seventh week in a row over the seven-figure threshold and the highest level since December 2019.

"Recent increases in new listings, coupled with rising active inventory, is a welcome sign for buyers, who are poised to gain some negotiating power moving into the summer," says Jones.

But while options for buyers have expanded, overall supply remains well below pre-pandemic norms, particularly in the Midwest and Northeast, where the nation's greatest housing supply gaps persist.

On the other hand, nearly all major Southern metros now exceed pre-COVID inventory levels, fueled by a construction boom over the past several years.

Market pace continued to slow annually, with the typical home spending six more days waiting for a buyer to come to the closing table compared to the same period in 2024.

Median time on market now sits at 51 days nationally, about the same as pre-pandemic levels for June. For comparison, when inventory was at its lowest in Spring 2022, median time on market was just 28 days. 

A mixed bag for would-be buyers

All these metrics, from steady prices to expanding inventory and slower selling pace, taken together signal that today’s housing market is more buyer-friendly than a year ago, according to Jones.

What's more, consumer confidence is picking up as well. Buyer and seller sentiment has improved, and Americans' concerns about job security and personal finances have abated.

Given the cooler-than-expected inflation and overall healthy job market, the Federal Reserve on Wednesday opted to keep interest rates steady in the 4.25% to 4.5% range for the near future.

The central bank signalled that it anticipates two rate cuts by the end of 2025.

As a result, aspiring homebuyers should not expect mortgage rates to significantly drop as the summer season gets underway, meaning that affordability will likely continue to remain a stumbling block for some.