July 2025 Real Estate Trends: Inventory Growth, Longer Days on Market, and Price Shifts

July 2025 Housing Market: More Homes for Sale, But the Market Grows Cooler

In July 2025, the U.S. housing market continued its gradual shift toward a more balanced state—perhaps even tilting slightly toward buyers. The number of homes listed for sale surged 24.8% year‑over‑year, marking the 21st consecutive month of inventory growth. This lifted active listings to over 1.1 million, the third straight month hitting this milestone.

Yet while supply climbed, demand seemed to cool. Pending home sales—homes under contract—declined by 3% year‑over‑year, and newly listed homes, despite rising 7.3% compared to last July, continued to fall month‑over‑month for the third month in a row.

Homes are also lingering longer on the market. The median time on market stretched to 58 days, up eight days from a year prior and five days from the previous month—surpassing pre‑pandemic norms for the first time.

Regional Differences Persist

Inventory gains varied across regions:

• West: +32.5%

• South: +25.4%

• Midwest: +18.1%

• Northeast: +15.5%

Despite these national gains, inventory levels remain 13.4% below the pre‑pandemic baseline (2017–2019 levels).

At the metro level, notable surges include Las Vegas (+65.7%), Washington, D.C. (+56.5%), and Raleigh (+45.4%).

Some markets have even exceeded their pre‑pandemic inventory. For example, Denver (+73.1%), Austin (+59.7%), and San Antonio (+53.9%) are well above prior norms. In contrast, Hartford (‑75.8%), Chicago (‑58.9%), and Providence (‑55.6%) still have significantly low inventory by comparison.

New Listings & Price Cuts

Newly listed homes have increased across much of the country, with 29 of the top 50 metros seeing year‑over‑year gains in listings—up from 26 the previous month. Only San Antonio, Houston, and Raleigh are currently above pre‑pandemic norms for new listings .

Price cuts, though still prevalent, actually softened slightly in July: 20.6% of listings featured price reductions—the first monthly drop in 2025.

Price Trends & Market Correction

Nationally, the median list price edged up just 0.5% year‑over‑year, sitting at around $439,450. Price per square foot rose at the same modest pace.

But many local markets are undergoing adjustments. In 33 of the 50 largest metros, list prices actually declined year‑over‑year, up from 29 a year earlier. Among those, 19 have now slipped below their July 2022 peaks, signaling that parts of the post‑pandemic housing correction are underway.

What It Means for Buyers and Sellers

• Buyers are gaining ground, with more inventory to choose from, homes staying listed longer, and some markets seeing actual price reductions.

• Sellers, especially in overheated markets, may need to temper expectations—price improvements are appearing less frequently.

Still, the market isn't uniform: some regions remain competitive, and price trends vary sharply depending on location.

Final Word

July’s data underscores a market in transition—from the red-hot frenzy of the pandemic era toward a more measured, buyer-friendly phase. If more inventory continues to pile up while buyer activity softens, this could create opportunities—but also pressure—in price negotiations.

Ready to take advantage of today’s shifting market? Whether you’re looking to buy, sell, or invest, now is the time to align your strategy with the latest trends. Let’s discuss your goals and create a plan that positions you for success. Contact me today at (919) 866-9302 or tamisha.lane@realtyinraleigh.com to get started.