August 2025 Housing Market: Inventory Climbs While Buyer Demand Stays Strong

The U.S. housing market continued to rebalance in August 2025, as inventory reached multi-year highs and contract activity remained strong. Despite a slowdown in net new listings, buyer demand pushed contract volume higher, signaling a market that is edging closer to buyer-friendly territory.

Inventory Expands, Market Approaches Balance

Total inventory rose 23.0% year-over-year, bringing supply back to pre-COVID levels for the first time in several years. Months of inventory now stands at 4.94 months, a neutral level that borders on buyer’s market conditions.

Median days on market increased to 48 days, up from 44 a year ago, reflecting a more measured pace of sales. While new listing activity dipped, overall inventory continues to expand as removals climb and buyer activity persists.

Buyer Demand Remains Resilient

Even with fewer net new listings, buyers remain active across the market. 296,630 properties went under contract in August, a 10.7% increase compared to last year. Over the last 52 weeks, 2,719,566 properties have gone under contract, a 4.0% gain year-over-year.

Contract activity was up across all price tiers, with notable strength in the $600k–$1M (+11.2%) and $0–$200k (+11.5%) ranges compared to August 2024.

Prices Hold Steady as Sellers Adjust

Pricing trends continue to reflect a balancing market:

• Median listing price: $457,162 (+0.9% YoY, -1.8% MoM)
• Median closed price: $442,427 (+3.0% YoY, +0.4% MoM)

While prices remain resilient, sellers are adapting to new conditions. Price cuts rose 21.9% year-over-year, the highest level since 2020, signaling greater flexibility as competition increases.

Rental Market: Supply Surges, Prices Stabilize

The rental market is also seeing major shifts. Rental inventory expanded 25.5% year-over-year, marking one of the steepest increases in years. Despite this surge in supply, rents remained flat at a median of $2,585 compared to last year, while dipping 0.6% month-over-month.

Key August 2025 Highlights

• Net New Listings: 261,847 in August (down 4.3% YoY).
• Contracts: 296,630 in August (up 10.7% YoY).
• Inventory: +23.0% YoY; months of supply at 4.94.
• Days on Market: 48 (up 9.1% YoY).
• Prices: Listing +0.9% YoY | Closed +3.0% YoY.
• Rental Market: Inventory +25.5% YoY, rents flat at $2,585.

The Bottom Line

The August 2025 Market Pulse reflects a housing market in transition: supply is growing, prices are stabilizing, and buyers remain highly active across all segments. With inventory back to pre-pandemic levels, conditions are tilting toward buyers for the first time in years, setting the stage for a more balanced housing landscape.

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