The U.S. housing market is entering a notably balanced phase—a welcome shift from the intense seller’s market that dominated during the pandemic. According to a July 5, 2025, report by Homes for Heroes, active listings across the country have surpassed 1 million for the first time since late 2019. This normalization presents a more stable environment and fresh opportunities for real estate professionals.
National inventory recently reached over 1,082,520 homes, indicating a return to pre-pandemic levels. At the same time, about one-third of sellers have reduced their asking prices, and approximately 20% of listings now feature price drops—up from 16% the previous year. Homes selling above the asking price have also declined, with only about 31% selling over list, down from 40% in 2024. These signs all point to a cooler, more negotiable market.
However, affordability remains a challenge. Mortgage rates are holding steady between 6.5% and 7%, which continues to put pressure on prospective buyers. The national median existing-home sale price reached $422,800 in May and climbed to an all-time high of about $435,300 in June—marking a 2% year-over-year increase. While prices are rising, sales activity is showing a downward trend, with existing-home sales in June falling 2.7% from May and remaining flat compared to the prior year. Homes are also spending more time on the market, now averaging 27 days, up from 22 days a year ago.
For realtors, these shifts are altering the landscape in significant ways. With more inventory and sellers becoming increasingly open to negotiation, agents have stronger leverage to help buyers secure favorable terms. Price flexibility and seller incentives are becoming more common, especially in regions where listings are lingering.
Digital tools have become essential in this environment. Mobile-friendly listings, virtual tours, drone photography, and smart-market analytics are helping agents stand out. Realtors who harness technology effectively are capturing the attention of well-qualified leads through compelling, data-driven presentations that go beyond basic listings.
Accurate pricing and strategic marketing have become critical. In this balanced market, homes priced too aggressively risk becoming stale or expiring without a sale. Realtors must use local comparables and real-time market data to craft realistic pricing strategies that attract interest from the outset. Additionally, staging, professional photography, and targeted online campaigns can help draw more eyes to listings.
Client education has also taken center stage. Given the persistence of higher mortgage rates, realtors are playing a larger role in helping clients understand how these financial conditions impact buying power. Buyers need guidance on pre-approvals, amortization schedules, and potential refinancing down the line. Likewise, sellers benefit from clear explanations of how today’s conditions affect pricing and timing strategies.
Meanwhile, broader industry trends are adding complexity. Nearly 37% of homebuilders reported cutting prices in June, the highest percentage since 2022. This is in response to increased competition from existing homes and sluggish demand. Some builders are also engaging in land banking—securing land for future development rather than starting new builds right away—to prepare for eventual market acceleration.
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A recent National Association of Realtors (NAR) survey indicated that if mortgage rates drop to 6%, nearly 5.5 million U.S. households would re-enter the market. That could generate as many as 550,000 new buyers within 12 to 18 months. This has led analysts to suggest that the current balance is only temporary and may tilt again once interest rates adjust.
Geographic trends also play a role in shaping the realtor experience. Inventory has grown 22–23% in the Midwest and Northeast, though still below pre-pandemic levels. In contrast, the South and West have seen supply levels surpassing 2019 figures. Realtors must adjust strategies accordingly, taking hyper-local market conditions into account when advising clients.
Notable voices in real estate are acknowledging the shift. Billionaire developer Jeff Greene recently warned that high mortgage rates are suppressing activity, but predicted a strong rebound in prices and sales once rates come down. His outlook is shared by many in the industry who view the current phase as a recalibration period.
As the market steadies, real estate agents who embrace these changes—leveraging digital innovations, strong negotiation tactics, and client-focused education—are well-positioned to succeed. For listing agents, this means ensuring that homes are competitively priced, well-presented, and properly promoted. For buyer agents, success lies in helping clients navigate financing complexities, identify value, and act decisively.
In this new era of equilibrium, realtors have a unique opportunity to deliver high-value service and build long-term relationships. The path to success lies in understanding market dynamics, using the right tools, and maintaining transparent communication with clients.
