What to Know About the July 2025 Housing Market [VIDEO]

August 19, 2025

Summary

The U.S. housing market continued its slow and steady re-balancing in July. The inventory of homes for sale rose again, marking the 21st consecutive month of inventory growth and the third consecutive month with over 1 million active listings according to Realtor.com® housing data.

Homebuyers may have more choices; however, inventory growth is showing early signs of slowing.
Price cuts continue, even if median list prices have shown little movement overall. In July, 20.6% of home listings had price reductions—up slightly from July 2024.

Report

July 2025 Housing Market Report: Inventory Rises, Pace Calms, and Prices Hold Steady

Buyers and sellers alike are feeling a shift. The July 2025 housing market shows a slow but steady re-balancing that is giving home shoppers more room to breathe. Inventory has climbed again, buyer activity is steady, and prices remain stable. If you are planning a move this year, it pays to understand how these trends work together.

What follows breaks down the latest numbers and what they mean in plain language. You will see how supply, demand, time on market, and pricing are aligning to form a calmer, more balanced market. You will also learn how to use this window to your advantage, whether you are buying or selling.

Overview of the July 2025 Housing Market Report

The July snapshot points to a market in transition. After years of limited listings and rushed offers, inventory has grown for the 21st month in a row. Active listings climbed to a new post pandemic high, topping 1.1 million homes for sale nationwide. Year over year, that is a 24.8 percent jump. The pace of growth is cooling though, which signals the market may be settling into a healthier balance.

Buyer activity is holding, not surging. Pending home sales are up 3 percent compared with last July. Homes are sitting a bit longer, which gives shoppers time to compare options and make solid decisions. The median time on market is now 58 days, one week longer than last year.

Pricing remains firm. The national median list price is $439,450, up 0.5% from July 2024 and a touch lower than June 2025. Big swings have faded. Prices have stayed mostly flat since 2022, with normal seasonal ups and downs. A fresh twist has emerged on the seller side though. Some owners would rather pull a listing than cut the asking price, a signal of confidence as the market re-balances.

Why This Matters for Buyers and Sellers

Buyers: More homes, more time, less pressure.
Sellers: Pricing strategy matters, presentation matters, patience helps.

The shift reflects a broad re-balancing of the scales, not a boom or a bust. It is a steadier market where clear information and smart choices win.

Key July 2025 Numbers at a Glance

Metric	July 2025	Year-over-year change
Active listings	1.1 million+	+24.8%
Pending home sales	Steady increase	+3%
Median time on market	58 days	+7 days
National median list price	$439,450	+0.5%

Growth in Homes for Sale: More Options for Buyers

Inventory is the headline story. For 21 straight months, the number of homes for sale has grown compared with the same month a year prior. That streak has now pushed the total number of active listings to a post pandemic high, with 1.1 million homes on the market. After several years of very few choices, this is the welcome change buyers needed.

More supply eases the strain. It spreads out demand and reduces the odds of intense bidding. It lets buyers look at several properties side by side and weigh trade-offs with less urgency. The rise in listings also supports a more stable price picture, since sellers have to compete on value, condition, and price, not scarcity alone.

The pace of inventory growth is important. Earlier gains were faster. Now growth appears to be cooling, which points to a market that is moving toward balance rather than sprinting in one direction.

Signs of Slowing Inventory Growth

Twenty-one months of steady year-over-year gains.
A new post pandemic high in active listings.
A recent cooling in the growth rate as conditions ease toward balance.

Benefits for Home Buyers

Wider selection of homes across budgets and styles.
Less competition in bidding wars, more room to negotiate.
Time to conduct inspections, compare comps, and plan financing.
Better odds of finding a home that actually fits your needs.

Buyer Activity and Time on the Market

On the demand side, buyers are active, but the pace is calmer. Pending home sales ticked up 3 percent from last year. That is healthy, not hot. With more homes available, shoppers are spreading out their interest. They are also not rushing at the first new listing they see, which cools the pressure to write fast.

Time on market reflects this change. The median home now sits for 58 days, a full week longer than last July. That extra time is meaningful. Buyers can arrange second showings, bring in contractors for quotes, and compare offers with a clear head. Sellers can use the extra days to reach a wider pool of buyers without panic.

What the Increase in Pending Sales Means

A 3 percent rise is a sign of steady demand. Activity is more subdued, which matches what you would expect in a market with more supply and a bit more patience. People are still buying homes, they are just taking a more measured approach.

Longer Time for Decisions: A Buyer’s Advantage

A shift from about 51 to 58 days on market gives buyers time to make better calls. Use that time well.

Research neighborhoods thoroughly, from schools to commute routes.
Compare multiple homes and offers, not just the first match.
Avoid quick, emotional buys that create regret later.

Home Prices: Stability with Subtle Shifts

Prices tell a clear story of stability. The national median list price in July came in at $439,450. That is up 0.5% from July 2024, and slightly lower than June 2025. Pull back to a wider view and you see an even steadier picture. Since 2022, national list prices have been mostly flat, with normal seasonal waves rather than big swings.

Why that matters: flat pricing reduces risk. Buyers can underwrite a purchase with more confidence, and sellers can price to the market without guessing at sharp moves. Affordable is relative, but stable prices combined with higher inventory reduce whiplash for both sides.

There is a twist in seller behavior though. Some owners are choosing not to cut their prices to chase a buyer. Instead, they de-list their homes, regroup, and return later, or hold off entirely. That pattern implies sellers still believe in the value of their homes, especially if they are not forced to sell. It also means buyers should not expect across-the-board discounts, even with more homes available.

The Bigger Picture on Price Trends

Prices have been relatively flat since 2022. Seasonal patterns show mild rises in spring and early summer, then cooling into fall and winter.

Versus June 2025: Slight drop.
Versus July 2024: Small rise.
Long-term since 2022: Stable with seasonal moves.

Sellers’ New Strategy: Delisting Over Discounts

A growing share of sellers would rather delist their homes than slash the asking price to spark activity. This approach fits a market that is re-balancing. With more inventory and a calmer pace, price reductions are more targeted, not automatic. Sellers who can wait may step back if the first few weeks do not meet expectations. For buyers, this means fair pricing is on the table, yet deep cuts are not guaranteed. Clean offers, solid terms, and strong financing still matter.

How These Trends Fit Together

Put supply, demand, time on market, and pricing side by side, and a clear picture emerges. The market is not racing ahead and it is not stalling. It is settling. More homes for sale have loosened the pressure valve. Buyers are active enough to keep deals moving, but not so intense that everything sells in a weekend. Prices are steady, which keeps both sides from making rash decisions based on fear of missing out.

This is the type of setting where good information and patience pay off. It rewards buyers who compare and plan. It rewards sellers who price with recent comps, prepare the home well, and give the listing time to work.

Regional and Segment Nuances to Watch

Even with a national trend toward balance, conditions can vary by metro, price tier, and property type. Entry-level homes may still draw strong interest in some markets. Luxury listings can sit longer, especially if pricing is ambitious. Suburban areas with new construction might show more inventory growth than dense urban cores. The national data sets the tone, but local shifts shape the day-to-day experience. A trusted local agent can help decode these differences in real time.

Practical Tips for Buyers

Use today’s conditions to your advantage.

Get pre-approved, so you can move quickly on a good fit.
Tour several homes, then compare layout, condition, and cost of ownership.
Ask for concessions tied to repairs or closing costs when value supports it.
Watch days on market. Listings past the 30 to 45 day mark may be more open to negotiation.
Do not skip the inspection. The extra time on market makes it easier to complete.

Practical Tips for Sellers

A calmer market rewards a thorough prep and smart pricing.

Study recent comps within your neighborhood and price band.
Make basic repairs and updates that matter, like paint, lighting, and curb appeal.
Stage key rooms to help buyers see the space, especially living areas and the primary bedroom.
Expect a longer timeline. Plan for 58 days as a median, then adjust based on your area.
If activity is slow, consider strategic adjustments. If you can wait, a temporary pause can be smarter than a deep cut.

Navigating the Evolving Market: Steps for Success

This is not a sprint. It is a thoughtful market where information and execution matter.

Stay on top of data from trusted sources, including monthly recaps and videos with TimAngelRealestate.com Market Reports.
Work with a local expert who knows your sub-market, from pricing bands to buyer demand.
Build a clear strategy for timing, pricing, and terms. What would make you walk away, and what would make you say yes?
Use planning tools and content resources.

Frequently Asked Questions

Is it a buyer’s market now?

Not quite. Inventory is higher, and buyers have more choices, but demand has not disappeared. Think balanced conditions, with a slight tilt that helps buyers more than in recent years.

Are home prices dropping?

Nationally, list prices are flat to slightly up year over year. July’s median list price is $439,450, up 0.5% from last year and a bit lower than June. Some individual listings may see reductions, while others get de-listed rather than cut.

How long will homes sit before selling?

The current median is 58 days. Some homes still sell faster if they are well priced and in top condition. Others take longer, especially at higher price points or in areas with lots of similar options.

Are bidding wars over?

Many have cooled, thanks to more inventory. In hot pockets, multiple offers still happen, but they are less intense and more grounded in value.

Conclusion

The July 2025 housing market looks steady and sensible. Inventory has grown for 21 straight months, pending sales are up modestly, the median time on market is 58 days, and the national median list price holds near $439,450. The pace is calmer, the choices are wider, and the pressure is lighter. That is good news for thoughtful buyers and focused sellers.

Use this moment to make decisions with confidence. Bring data to the table, set clear goals, and stay patient. If you plan to act soon, build a clear strategy that fits your budget and timeline. Thanks for reading, and feel free to share your questions or insights for the next market update.