KEY ARTICALE TAKEAWAYS
The U.S. housing market is rapidly approaching buyer-friendly territory, with inventory surging to multi-year highs and buyer demand showing no signs of fading. Our July 2025 Market Pulse Report reveals a landscape where robust contract volume and stabilizing prices define the summer selling season.
Inventory Growth Accelerates, Market Edges Toward Balance
After years of constrained supply, inventory is making a comeback. Total inventory has increased 23.9% year-over-year, reaching the highest level since 2020. Months of inventory now stands at 4.92—just shy of the traditional threshold for a buyer’s market. While net new listings were down 3.1% from last July, strong buyer activity continues to absorb available homes at a healthy clip.
Buyer Demand Remains Resilient Across Price Tiers
Despite the modest dip in new listings, buyer demand remains a standout story. 297,061 properties went under contract nationwide in July, an 8.9% increase from last year. Over the past 52 weeks, contract volume has climbed 3.4%, led by robust growth in higher price tiers:
- $600k–$1M: +9.4% YoY contract volume for Jully
- $1M+: +7.7% YoY contract volume for July
Lower price tiers also saw a resurgence in contract activity, signaling that affordability is driving demand where inventory is available.
Prices Stay Resilient, but Sellers Adjust Expectations
The market’s shift is also visible in pricing trends:
- Median listing price: $464,964 (+1.8% YoY)
- Median closed price: $446,871 (+3.4% YoY)
While home values continue to rise, the pace has moderated. Notably, price cuts are up 25.7% compared to last year—the highest since 2020—as sellers respond to evolving buyer expectations and rising inventory.
Rental Market: Supply Surges, Rents Hold Steady
The single-family rental market is also in transition. Rental inventory jumped 23.6% year-over-year, outpacing historical trends. Despite this surge, median rents held steady at $2,610, reflecting a market where new supply is beginning to match demand. Month-over-month, rental prices remained unchanged.
Key July 2025 Highlights
- Net New Listings: 279,126 new listings in July (down 3.1% YoY), but 2.2% higher over the past 52 weeks.
- Buyer Activity: Contract volume up 8.9% YoY, with all price tiers seeing gains.
- Market Tempo: Median days on market climbed to 45 (up from 42 a year ago), reflecting a more measured transaction pace.
- Price Cuts: Up 25.7% YoY, signaling increased flexibility among sellers.
What This Means
July's data signals an inflection point in the U.S. housing market: inventory is back, and buyers are responding in force. As we move through the remainder of summer, keep an eye on how rising supply, price moderation, and shifting affordability impact local markets across the country.
Stay tuned for the next Market Pulse, and don’t forget - you can always access real-time property and market analytics powered by HouseCanary’s platform.
Methodology
The Market Pulse Report is an ongoing review of proprietary data and housing market trends from HouseCanary’s nationwide platform, covering 22 listing-derived metrics and comparing real estate data between June 2024 and June 2025.
Want to view the full report? Click here to download a PDF.
Frequently Asked Questions
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