A pronounced shift toward a more balanced U.S. housing market in mid-2025 is giving REALTORS® greater leverage in negotiations, as rising inventory and steady sales create new opportunities for agents and clients alike.
Recent National Association of REALTORS® data shows existing-home sales stabilized at approximately 4.03 million units at an annualized rate in May 2025—up roughly 0.8% from April’s 4.00 million and a modest rebound after slower spring activity. However, sales dipped to 3.89 million in June, reflecting a 2.7% monthly decline and highlighting recent softness in transaction volume.
Simultaneously, housing inventory continues to climb, with active listings exceeding one million in May for the first time since winter 2019. As of June, total inventory rose to 1.53 million units, representing about a 4.7-month supply—a level consistent with a balanced market rather than one dominated by sellers. Earlier reporting put May’s active listings at approximately 1.036 million, up 31% year-over-year.
Despite elevated borrowing costs, with the average 30-year fixed mortgage rate hovering near 6.9% to just under 7%, analysts and real estate forecasters anticipate gradual relief later in 2025, which may strengthen affordability and increase buyer activity.
Buyers are gaining ground in this environment. With more homes available and fewer multiple-offer bidding wars, purchasers have greater room to negotiate and compare options. At the same time, sellers must be strategic. A degree of price resistance is emerging—nearly 19% of active listings included reductions in May—and properties are taking longer to sell, with median days on market now stretching to over 50 days.
Read Also: https://besthouses.com/realtors-embrace-summer-surge-strategies-for-success-in-july-2025/
Agents are also increasingly turning to tech tools to gain a competitive edge. Asset valuation platforms, AI-driven pricing models, and virtual staging solutions are becoming essential for top-performing REALTORS® seeking to educate clients and offer differentiated services in a more nuanced market.
Regional dynamics continue to vary. Fast-growing metros in the South and West—such as Denver, Austin, San Antonio, Dallas, Seattle, and Phoenix—have seen the strongest inventory recoveries, many surpassing their 2017–2019 norms. In contrast, the Northeast and Midwest continue to experience tighter supply and modest seller-side strength.
Homebuilders are adjusting as well. U.S. single-family housing starts in June fell to an 11-month low, and building permits dropped to a more than two-year low, indicating a potential slowdown in future supply as developers grapple with high mortgage rates and shifting demand.
Overall, the U.S. housing market as of late July 2025 reflects a transition from seller-dominated dynamics toward a more balanced environment. REALTORS® now have the opportunity to offer data-driven, client-centered guidance in a market that increasingly values informed pricing, strategic marketing, and digital service offerings. Those who adapt quickly are well-positioned to thrive as the real estate landscape continues to evolve.
