KEY ARTICALE TAKEAWAYS
The U.S. housing market continues its steady shift toward balance as rising inventory levels meet resilient buyer demand. While new listings have slowed, contract activity remains strong, underscoring sustained engagement from buyers even as more supply enters the market.
Inventory Expansion Pushes Market Toward Balance
After months of consistent growth, total housing inventory rose 21.9% year-over-year, bringing supply back to pre-COVID levels for the first time in years. With months of inventory now at 5.49, the market sits squarely in neutral territory, edging toward conditions that favor buyers.
Median days on market climbed to 54 days, up 10.2% from a year ago, signaling a continued normalization of transaction timelines. Despite slower listing activity, overall housing supply continues to build due to elevated removals and persistent buyer interest.
Buyer Demand Remains Steady Across All Price Tiers
Buyer activity showed no signs of cooling. 283,409 properties went under contract nationwide in September, an 11.0% increase compared to last year. Over the past 52 weeks, 2,724,182 properties have gone under contract, representing a 4.7% annual increase.
All price tiers saw year-over-year gains in contract volume, led by growth in the $200k–$400k (+12.2%) and $1M+ (+11.5%) segments. This breadth of activity underscores that demand remains widespread, even amid higher supply and moderating prices.
Prices Hold Steady as Sellers Adjust
Pricing has remained stable despite the growing number of active listings. For September 2025, the median single-family listing price was $455,749 (+0.2% YoY), while the median closed price reached $433,239 (+3.5% YoY).
Price cuts, however, continue to rise - up 21.6% year-over-year, marking the highest level since 2020. This reflects sellers’ willingness to meet evolving buyer expectations and remain competitive in a more balanced market environment.
Rental Market: Expanding Supply Eases Pricing Pressures
The single-family rental market continues to experience notable supply growth. Rental inventory increased 21.9% year-over-year, while the median listed rent declined 2.2% to $2,502. Month-over-month, rents dipped by 1.8%, suggesting that the influx of new rental listings is beginning to stabilize pricing across markets.
Key September 2025 Highlights
- Net New Listings: 244,501 in September (down 9.5% YoY).
- Contracts: 283,409 in September (up 11.0% YoY).
- Inventory: +21.9% YoY; months of supply at 5.49.
- Days on Market: 54 (up 10.2% YoY).
- Prices: Listing +0.2% YoY | Closed +3.5% YoY.
- Rental Market: Inventory +21.9% YoY, median rent -2.2% YoY.
The Bottom Line
The September 2025 Market Pulse reflects a U.S. housing market that is approaching true balance for the first time in years. Rising supply, stable pricing, and broad-based buyer demand are reshaping the landscape as we head into the final quarter of the year.
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