The U.S. housing market is shifting. With existing-home inventory on the rise, buyers finally have more breathing room. Sales are ticking upward, prices are stabilizing, and this could be the best opportunity in years to find the right home.

1. Inventory Climbing — A Buyer’s Advantage

Unsold existing homes reached about 1.55 million units in July. That’s up 0.6% from June and nearly 16% higher than a year ago. At today’s sales pace, this equals a 4.6-month supply—just under the 5–6 months considered a balanced market.

Active listings also grew sharply, climbing about 25% year-over-year. While inventory is still below pre-pandemic levels, the increase gives buyers more choices than they’ve had in years.

2. Sales Rebound and Price Growth Slows

Existing-home sales rose 2% from the previous month, hitting a seasonally adjusted annual rate of 4.01 million units. That’s also slightly higher than a year ago.

The median existing-home price was $422,400 in July, a modest 0.2% increase compared to last year. This marks the 25th consecutive month of slight year-over-year gains, but far slower than the steep price spikes seen in recent years. National price indexes show growth is easing, which points to a healthier and more sustainable market.

3. Buyers in the Driver’s Seat

Rising inventory and softer price growth have tilted conditions in favor of buyers. For the first time in more than five years, shoppers are finding it easier to locate homes that fit their needs and to negotiate better terms.

Builders are also making moves to attract buyers. Nearly four in ten cut prices in August, with reductions averaging about 5%. Two-thirds offered incentives like mortgage rate buydowns or help with closing costs—the highest share in at least five years.

4. Market Competition Still in Play

Even with improving conditions, competition hasn’t gone away. About one in five homes still sold above asking price in July, with the typical property receiving just over two offers. Cash buyers remained active, making up nearly one-third of transactions.

First-time buyers, on the other hand, accounted for less than 30% of purchases—well below the historic norm of 40%. That means many younger buyers are still facing affordability challenges despite the rise in options.

5. Regional Shifts

The market looks different depending on where you live:

Northeast: Sales jumped 8.7% from June. Median price $509,300, up slightly from last year.

Midwest: Sales slipped 1.1% from June but edged up from last year. Median price $333,800, nearly 4% higher.

South: Sales rose 2.2% month-over-month and year-over-year. Median price $367,400, down slightly from last year.

West: Sales increased 1.4% from June but fell 4% from last year. Median price $620,700, down about 1%.

6. Tips for Today’s Buyers

Look for builder incentives like mortgage rate buydowns.

Negotiate—more inventory means more leverage.

Compare regions. Some areas are cooling faster than others.

Move quickly when you find the right home. Cash buyers and investors are still strong competitors.

Stay on top of new data, as the market is shifting month by month.

Conclusion

July 2025 signals a meaningful change in the housing market. More homes are for sale, price growth is moderating, and buyers finally have room to negotiate. While competition remains, this may be the best window in years for buyers to make their move.

Why Choose HillnHills: Jim & Lori – Brokers & Advisors

Looking to buy or sell in North Carolina? Jim and Lori of HillnHills bring the perfect mix of local expertise, market insight, and personalized service. They’re more than brokers—they’re trusted advisors who know how to navigate today’s shifting housing market and help you make confident, informed decisions.