Mortgage Market Update: Inventory Climbs, Prices Cool — A Balanced Field Emerging

July 28, 2025•2 min read

As of mid‑2025, the U.S. housing market continues its shift toward balance. Homes are staying on the market longer, inventory is rising, and price gains are moderating—creating a more level playing field.

Inventory: More Listings, Still Below Pre‑Pandemic

Inventory levels are rising steadily. Active listings rose about 28.9% year‑over‑year in June 2025, marking the 20th consecutive month of inventory growth. The U.S. crossed the threshold of 1 million active listings for the second consecutive month. Despite this surge, inventory remains approximately 12.9% below pre‑pandemic levels.

Total existing‑home inventory hit 1.53 million units in June—up 15.9% from last year—representing 4.7 months of supply, up from 4.0 months the year prior.

New‑home inventory is also up, with about 511,000 new homes for sale in June. That translates to a 9.8‑month supply—solidly buyer-friendly.

Pricing: Record Highs but Slowing Growth

Median existing‑home prices remain high. In June, the national median was $435,300—a record for that month—and marked the 24th consecutive year-over-year increase (roughly +2%).

New-home prices, on the other hand, have moderated. June’s median price dropped to $401,800, down 2.9% compared to last year and 4.9% from the previous month.

Broader indexes show similar deceleration. Home prices dipped 0.3% month-over-month in May, and year-over-year growth slowed to 2.8%, the lowest in nearly two years.

Median listing prices hovered around $440,950, with year-over-year growth nearly flat at +0.2%. Price-per-square-foot edged up by about 0.7%.

Market Implications: More Choices, Softer Demand

Buyers now have more time and flexibility. Homes took a median of 53 days to sell in June—five days longer than a year ago. That aligns with pre-pandemic trends. Meanwhile, delistings increased, signaling that sellers may be less willing to negotiate on price.

Buyer demand remains subdued. Pending home sales slipped 0.8% from the prior month and are down 2.8% year-over-year. Persistently high mortgage rates—still hovering around 6.75–6.9%—continue to put pressure on affordability.

Summary Table

MetricCurrent TrendInventoryRising (~15–30% YoY); still below pre‑pandemicExisting-home pricesAt record highs but growth slowing (~+2%)New-home pricesModerating; median price down YoYMarket paceSlightly slower; listings linger longerBuyer demandTepid; pending contracts easing back

If you're asking, “What’s the current market like?” — the answer is that it's transitioning from a frenzied seller's market to a more balanced one. Inventory is mounting, price growth is cooling, and buyers are regaining negotiating power. Sellers remain anchored to high expectations, but market dynamics increasingly favor buyers in many regions.