A Market Shift to Meet Demand
On July 9, 2025, the U.S. housing market is seeing a notable increase in the number of available homes, providing much-needed relief for buyers after years of inventory shortages. This uptick in listings—especially in key markets across the Western and Southern United States—marks a positive shift toward a more balanced real estate environment. Data from Realtor.com reports a 40.7% increase in listings in the West and a 32.9% rise in the South compared to last year.
This surge in listings is largely attributed to stabilizing mortgage rates and evolving seller motivations. Many homeowners, who had held off on selling due to economic uncertainty or rising mortgage rates, are now seizing the opportunity to list their homes as interest rates show signs of easing. For buyers, this means more inventory to choose from, especially in previously tight markets.
A More Balanced Market for Buyers and Sellers
With more properties on the market, buyers now have more options and the ability to negotiate. This is a welcome shift for those who have faced intense competition in the past, often resulting in bidding wars and rushed decisions. On average, homes are spending 32 days on the market, compared to just 18 days in 2024, giving buyers ample time to consider their options.
Realtors across the nation are reporting that this shift is creating a more buyer-friendly market, where potential homeowners can explore multiple properties and negotiate favorable terms, such as price reductions and closing cost assistance. Additionally, areas that were previously unaffordable due to limited inventory and skyrocketing prices are beginning to offer more attainable options for first-time buyers and growing families.
Impact on Affordability and First-Time Buyers
As inventory grows, the relief on affordability challenges is becoming evident. While home prices remain elevated compared to pre-pandemic levels, the increase in available homes is beginning to moderate price growth. This shift is especially beneficial for first-time buyers, who have struggled to secure homes in competitive markets over the past few years. Many of these buyers are now able to find properties within their budget without facing the high-pressure environments that characterized previous years.
According to the National Association of Realtors (NAR), first-time homebuyers now account for 30% of market activity, indicating strong demand for homes priced in the mid-range. The ability to negotiate, coupled with more available listings, is making homeownership a more achievable goal for many.
What This Means for Realtors
For real estate professionals, the increase in listings presents new opportunities and challenges. While there are more properties to sell, the market dynamics have shifted. Realtors must adapt to a longer selling process and be prepared to offer more personalized advice to clients, who now have more time to weigh their options.
Additionally, as virtual tours and digital home listings become more commonplace, agents are leaning into technology to engage clients and provide them with detailed, up-to-date information on available properties. Real estate professionals who can navigate this new landscape with efficiency and expertise will continue to thrive in the growing, more balanced market.
