More Homes, Steady Prices & Buyer Opportunities in May [VIDEO]

June 17, 2025

Summary

The May 2025 housing market analysis shows positive shifts for buyers. Inventory continues its impressive climb with 19 months of consecutive growth. While national prices remain relatively stable, a growing number of sellers are adjusting their asking prices, reflecting evolving affordability challenges. Despite mortgage rates nearing 7% and impacting buyer sentiment, the market is gradually re-balancing. This creates new opportunities, especially for those seeking more selection and potentially more negotiation power.

Report

April 2025 U.S. Housing Market: Inventory Jumps, Price Cuts Rise

Is the housing market finally turning in your favor? The latest Realtor.com April 2025 monthly housing market trends show a clear shift. There are more homes to choose from, price cuts are more common, and properties are taking a little longer to sell. At the same time, higher mortgage rates are cooling demand. If you are planning to buy or sell, these trends matter. Here is what changed and why it affects your next move in the April 2025 U.S. housing market.

Is the Housing Market Turning in Buyers’ Favor?

There is good news for buyers. Active listings climbed, sellers returned, and price reductions increased. Buyers still face higher borrowing costs, but the market has more breathing room than it had in the last few years.

Quick takeaways:

More homes for sale across the country
Inventory levels above pre-pandemic benchmarks
Higher mortgage rates are slowing demand

For a deeper dive and extra context, check the full write-up and video: April US Housing Market Report: Inventory Jumps, Price Cuts Rise.

Surging Inventory: More Choices for Homebuyers

Inventory grew again in April and did so in a big way. The number of homes for sale rose 30.6% compared to last year. This marks the 18th straight month of growth in active listings. After years of tight supply, buyers finally have more options.

The surge in supply also pushed listings past pre-pandemic benchmarks. That is an important shift because it means the market is not only improving, it is actually carrying more available homes than it did before 2020. Total unsold homes, which includes properties listed but not yet sold, increased nearly 20% year over year.

Key Inventory Stats from April 2025

30.6% increase in active listings vs. last year
18 months in a row of growing inventory
Nearly 20% rise in total unsold homes year over year

What This Means for Buyers

More inventory means less head-to-head competition for the same home. It also means buyers can be more selective, compare features and pricing, and negotiate more confidently. Bidding wars have not vanished, but they are less common than they were at the peak. Choice is back in the market, and that tends to support better outcomes for patient buyers.

Pending Sales Dip Amid Rising Rates

Even with more homes on the market, pending home sales fell 3.2% from a year ago. That drop points to a clear pressure point: higher mortgage rates. Rising rates reduce buying power, and that causes some shoppers to pause or extend their timelines.

This is a sign of a market that is cooling at the edges. More listings, more days on market, and fewer buyers going under contract add up to a slower pace, even if prices have not changed much.

New Listings Offer Hope for Sellers

Sellers are returning. New listings were up 9.2% from last year. That is a silver lining for would-be sellers who need more confidence that their home can attract serious buyers. The pace of new listings growth was a touch slower than the month before, which suggests some sellers are still watching rates and local demand before listing.

Two key points:

9.2% up in new listings year over year
Growth eased compared with the prior month

For sellers, this means you are not alone in the market anymore. Pricing strategy and presentation matter more when buyers have choices.

Homes Taking Longer to Sell, But Still Active

Homes are spending more time on the market. The median days on market reached 50 days, which is 4 days more than last year. That extra time signals a slight cooldown, but it is not a return to the slower pace before 2020.

Simple comparison:

Current median: 50 days
Last year: 46 days
Pre-pandemic: Slower than today’s pace

The takeaway is balance. Buyers get more time to think. Sellers still see activity if the home is priced right and looks great online and in person.

Steady Prices Meet Affordability Hurdles

Prices held steady at the national level in April. The national median list price stands at $431,250. That headline will sound calm, but it masks a big challenge underneath: affordability.

National Median List Price Holds Firm

Median list price: $431,250

The Growing Income Gap

The income needed to afford a median-priced home has climbed by almost $47,000 since 2019. That is a steep hurdle for many households and a big reason some buyers are waiting. Even when inventory rises, higher rates and higher required incomes slow the pace of offers and contracts.

Before-after snapshot:

2019 baseline: lower required income
2025: nearly $47,000 more income needed to afford the median home

This helps explain why pending sales dipped even though choices improved. For many buyers, the math is tighter, so they are weighing trade-offs like smaller homes, longer commutes, or waiting for a rate drop.

More Sellers Cutting Prices

Price reductions are also back in force. In April, 18% of listings had a price cut. That is the highest share since at least 2016. Sellers are adjusting to meet buyers where they are, and that is another sign of a market negotiating toward balance.

What this means:

18% price cuts signal flexible pricing
Buyers may find room to negotiate or ask for credits

If a home sits on the market for a few weeks without strong offers, expect the price to adjust. For buyers, keep a close eye on homes that have been listed for 30 days or more. That window can invite a conversation on price or closing costs.

Regional Inventory Hotspots and Laggers

The inventory story is not the same everywhere. Some regions are leading the way, while others lag behind.

Where Inventory Is Booming

West and South: Biggest gains in available homes
Denver, Austin, Dallas: Inventory above pre-pandemic levels

These metros saw early pandemic booms, and they are now the first to move past those earlier supply lows. With more listings available, buyers in these areas may see more price cuts, more choices by neighborhood, and more room to negotiate.

Slower Areas to Watch

Midwest and Northeast: Smaller inventory gains

These regions show slower change. With fewer new options, pricing in some neighborhoods could stay firm. The mix of urban, suburban, and rural markets also affects how quickly inventory resets.

Quick View: April 2025 at a Glance

Metric	April 2025 Figure	Year-over-Year Change
Active listings	Higher supply	+30.6%
Total unsold homes	Above last year	Nearly +20%
Pending home sales	Fewer contracts	-3.2%
New listings	More sellers returning	+9.2%
Median days on market	50 days	+4 days
National median list price	$431,250	Holding steady
Share of listings with price cuts	18%	Highest since 2016
Income needed vs. 2019	Higher affordability bar	Nearly +$47,000

Why These Trends Matter for Your Next Move

Better supply, slower demand, and steady prices form a clear picture. Buyers gain options. Sellers need strategy. Investors track where supply is rising fastest and where demand is softening.

Buyers: Cast a wider net and compare neighborhoods. Watch for price cuts and homes on the market longer than 30 days.
Sellers: Price to the market, not to yesterday. Consider strategic reductions if showings slow and feedback points to price.
Investors: Follow the West and South for supply-led shifts, and watch the Midwest and Northeast for tighter markets that may hold price.

Want ongoing market insights and content you can apply week after week? Explore the xpertRealtyMarketing content plans for steady, data-backed guidance.

Practical Tips Based on April’s Numbers

Put the data to work in your local market. Simple steps can help you act with confidence.

Set alerts for your target neighborhoods. Rising inventory means new matches hit daily.
For buyers, stay pre-approved and rate-aware. If rates shift, adjust your budget before touring.
For sellers, refresh photos, staging, and copy if the home sits. Pair a small price cut with a marketing update for a stronger relaunch.
Track days on market. Use 30-day and 45-day thresholds as negotiation signals.
Look at price reductions. If the average cut size is growing nearby, align your pricing sooner, not later.

What To Watch Next

A few signals will shape the next few months:

Mortgage rates: Any move down can pull buyers back in quickly.
New listings: If sellers keep returning, inventory gains could stick through summer.
Price cuts: A rising share hints at more balanced pricing ahead.
Regional gaps: West and South gains may shift buyer behavior and rents in fast-growing metros.

Conclusion

The April 2025 snapshot shows a market easing into balance. Supply is up, price cuts are more common, and homes take a little longer to sell. Rates remain the headwind, which explains the slower pace of pending sales even with more choices. Use these shifts to plan your next steps with clarity and confidence. Ready to act in your market, or prefer to wait for rates to settle? Either way, staying informed gives you an edge.