Promising news for home buyers
The double-edged sword of low affordability and low inventory has made house hunting harder in recent years.
While the supply of for-sale homes still lags pre-pandemic totals, a recovery’s underway. The count of active listings spiked 17% annually in September, according to Realtor.com.
Some of the largest inventory gains came in high-demand cities and a fifth of all listings had price reductions.
Find your lowest rate. Start hereActive listings make huge leap in September
In a promising sign for prospective borrowers, active home listings surged 17% annually in September, according to Realtor.com’s Housing Report.
A typical day during the month yielded 1.1 million for-sale listings, up from August’s 1.099 million and September 2024’s 940,980. It marked the 23rd straight month of annual growth. Though active listings overall still lag “normal” prepandemic levels, that varies regionally and at the metro level.
“September’s trends show a housing market increasingly tilting in buyers’ favor, with a rising inventory of homes for sale, longer days on market and more competitive pricing,” said Danielle Hale, chief economist at Realtor.com. “At the same time, a Realtor.com analysis of seasonal trends shows the week of October 12–18 offers a particularly good window for buyers. While market power varies across regions and price tiers, reflecting economic conditions, in many areas momentum is lining up with seasonal price cuts and other advantages, which will make this fall particularly buyer-friendly relative to recent years..”
Regionally, the West saw active listings grow most at a 21.1% annualized rate. Then came the South at 17.9%, Midwest at 13.21% and Northeast at 10.1%.
Among the 50 largest U.S. housing markets, Washington, D.C. led the way with a 48.7% year-over-year gain in active listing count. Jumps of 40.8% in Las Vegas, 38.6% in Baltimore, 36% in Charlotte, N.C., and 34.3% in Raleigh, N.C., rounded out the top five.
Time to make a move? Let us find the right mortgage for youThe table below shows the metro areas with the 15 largest annual rises in listing count in September:
| Metro | Active Listing Count, YoY | Median List Price | Median List Price, YoY | Median Days on Market, YoY (Days) | Price Reduced Share | Price Reduced Share, YoY (% Points) |
| Washington, DC | 48.7% | $599,900 | 0.0% | 2 | 18.1% | 5 |
| Las Vegas | 40.8% | $475,000 | -0.5% | 13 | 23.2% | 0.9 |
| Baltimore | 38.6% | $385,000 | 4.1% | 0 | 19.8% | 3.3 |
| Charlotte, NC | 36.0% | $438,500 | 2.0% | 10 | 25.5% | 2.6 |
| Raleigh, NC | 34.3% | $457,662 | 0.6% | 8 | 24.5% | 5.1 |
| Seattle | 27.0% | $769,000 | -0.4% | 4 | 20.5% | 3.2 |
| San Diego | 25.6% | $948,500 | -4.9% | 9 | 19.7% | 1.3 |
| Indianapolis | 25.3% | $323,250 | -0.5% | 3 | 29.7% | 3.8 |
| Houston | 25.1% | $359,950 | -2.7% | 8 | 19.6% | 0.5 |
| Los Angeles | 24.0% | $1,099,000 | -4.8% | 11 | 15.2% | 1.5 |
| Columbus, OH | 23.7% | $375,000 | -0.6% | 9 | 28.0% | 3 |
| Kansas City, MO | 23.2% | $387,450 | -0.5% | -1 | 18.9% | 1.5 |
| Phoenix | 23.0% | $499,000 | -4.0% | 9 | 26.5% | 0.5 |
| Louisville, KY | 22.8% | $317,000 | -0.8% | 2 | 21.9% | 1.7 |
| Tucson, AZ | 22.3% | $385,000 | -1.3% | 12 | 20.5% | -0.2 |
At the other end of the spectrum, Chicago gained the least for-sale inventory, increasing 0.6% from September 2024. Grand Rapids, Mich., and New York came next, rising 1.5% and 3.2%, respectively, followed by 3.7% in Milwaukee and 5% in Minneapolis.
The table below shows the full bottom 15:
| Metro | Active Listing Count, YoY | Median List Price | Median List Price, YoY | Median Days on Market, YoY (Days) | Price Reduced Share | Price Reduced Share, YoY (% Points) |
| Chicago | 0.6% | $372,366 | -2.0% | 2 | 16.4% | 0.9 |
| Grand Rapids, MI | 1.5% | $397,950 | 2.1% | 2 | 20.0% | 0 |
| New York | 3.2% | $759,500 | -1.7% | 1 | 9.1% | -0.2 |
| Milwaukee | 3.7% | $399,000 | 2.3% | 2 | 16.9% | -1.5 |
| Minneapolis | 5.0% | $425,000 | -1.7% | -1 | 18.9% | 1.8 |
| Jacksonville, FL | 5.9% | $394,500 | -1.1% | 10 | 26.0% | 0.2 |
| San Francisco | 6.8% | $975,000 | -2.3% | 8 | 12.8% | -0.8 |
| Hartford, CT | 7.1% | $444,450 | 4.6% | 3 | 11.0% | 0.5 |
| Pittsburgh | 9.8% | $254,950 | 6.3% | 2 | 21.6% | 1.9 |
| Buffalo, NY | 10.5% | $275,725 | -0.6% | -1 | 11.1% | 0.9 |
| Austin, TX | 11.2% | $495,000 | -4.8% | 7 | 27.6% | 1.7 |
| Birmingham, AL | 11.8% | $299,900 | 0.0% | 3 | 18.7% | 0.2 |
| Tampa, FL | 12.2% | $412,450 | -0.6% | 13 | 26.8% | -1.4 |
| San Jose, CA | 12.5% | $1,365,750 | -4.6% | 5 | 11.7% | 0.4 |
| St. Louis, MO | 12.6% | $299,900 | 0.0% | 1 | 18.7% | 2.1 |
Additionally, the median time listings spent on the market reached 62 days, up from 60 days in August and 55 days the year prior. The share of listings with price reductions hit 19.9%, down monthly from 20.3% and up annually from 18.6%.
The median listing price went to $425,000 in September, down from $429,990 in August and flat from September 2024. It also marks a 21.4% five-year growth rate from September 2020.
The bottom line for home buyers
With affordability sidelining many would-be home buyers, more for-sale options could help lower prices for house hunters in 2025.
If you’re searching to purchase a home, take some good expert advice and get your ducks in a row. Plus, you could save big money by learning strategies for mortgage rate negotiation and seeing what down payment and closing cost assistance you may qualify for.
Reach out to a local mortgage professional if you’re ready to begin your path to homeownership.
