By the end of July 2025, housing market dynamics across the United States have shown a meaningful tilt toward buyers, reversing years of intense seller dominance. Inventory levels have expanded significantly, home prices are rising more slowly—or even declining slightly in some areas—and negotiation power is beginning to return to buyers in ways not seen since before the pandemic-fueled housing surge.
The number of homes on the market has increased to about 4.4 to 4.6 months of supply, the highest inventory level since at least 2019. While not yet reaching the six-month threshold traditionally associated with a full buyer’s market, this rise signals an increasingly balanced environment. With more choices and less urgency, buyers can now take time to evaluate properties, make thoughtful offers, and negotiate more favorable terms.
Home price growth is also cooling. Nationwide, median prices are projected to rise only 2.5% in 2025—far below the rapid gains seen during the pandemic years. In several metro areas, particularly in the South and West, listing prices have softened and price reductions have become more common. By midyear, over 20% of listings had seen at least one price cut, the highest rate in recent memory. Homes are also staying on the market longer, with average days on market climbing to over 50 nationwide. This slower pace has curbed the frenzy that defined much of the market over the past several years, when properties often sold within days and above asking price.
Sellers are adapting to the new conditions. While many are open to negotiating on price or closing terms, a significant number have responded by pulling their homes off the market entirely. Delistings have jumped nearly 50% compared to the previous year, a sign that some homeowners would rather wait than accept lower offers. This push and pull between buyers seeking value and sellers holding firm underscores the evolving power dynamic at play.
Despite these favorable trends for buyers, affordability remains a challenge. Mortgage rates have averaged about 6.7% for much of the year and are expected to ease only modestly by year’s end. High borrowing costs continue to limit how much many prospective buyers can afford, even as home prices begin to flatten. However, with reduced competition and longer listing periods, buyers may be better positioned to negotiate rate buy-downs, closing cost assistance, or other incentives from motivated sellers.
Sales activity in 2025 is expected to be among the lowest in nearly three decades, with projected annual sales of existing homes falling below 4 million. This slowdown is partly due to affordability constraints, but also reflects a recalibration of expectations on both sides of the transaction. For buyers who are financially prepared, this subdued activity may represent a strategic opportunity. Those able to move decisively—armed with pre-approval and an understanding of local trends—may find that sellers are more flexible than at any point in recent years.
Industry analysts emphasize that while a full buyer’s market has not yet materialized nationwide, the summer of 2025 is shaping up to be the most buyer-friendly in a decade. Shifts in inventory, pricing behavior, and time on market all favor more balanced negotiations. In contrast to the red-hot seller’s markets of 2020 to 2022, today’s climate is allowing buyers to take a more measured and informed approach.
Ultimately, this evolving landscape may encourage greater stability across the housing sector. As supply continues to improve and demand moderates, the extreme price volatility and bidding wars of recent years could give way to more sustainable, long-term homeownership patterns. For buyers, now may be the time to re-enter the market with confidence, strategy, and a stronger voice at the negotiating table.
