What is going on with the housing market right now?
The housing market of 2025 hangs in a purgatorial balance.
With unsustainable costs of living straining would-be home buyers and the lock-in effect anchoring sellers, it’s become a weird dance where no one’s in a rush.
That’s led to boosted inventory and subsequently slowed the pace of home price growth, lengthened time on market, and increased price reductions — all advantageous factors for prospective buyers. However, property delistings have also taken off for sellers who don’t want to settle, spiking 38% year-to-date and 48% annually in June.
Find your lowest rate. Start here“Despite slight mortgage rate improvement, affordability remains a serious barrier. Sellers, who have returned to the market in bigger numbers than buyers this year, are facing the realities of lingering listings and a smaller pool of qualified buyers,” said Kara Ng, senior economist at Zillow Home Loans.
“This dynamic creates a significant opportunity for those who can afford to purchase a home. With less competition, today’s buyers benefit from lower mortgage rates, more inventory, and improved negotiating power. The market continues to shift in their favor.”
By and large, the pendulum of power started swinging back towards home buyers in 2025. Overall, active listings reached 1.103 million in July and grew annually for the 21st-straight month, according to Realtor.com. The median listing price went to $439,450 — dipping 0.3% from $440,950 in June and 0.1% from $439,950 in July 2024. It also marked a 37.6% five-year growth rate from July 2019.
Additionally, the median time listings spent on market reached 58 days, up from 53 days in June and 51 days the year prior. The share of listings with price reductions stepped down monthly to 20.6% from 20.7% but grew annually from 18.9%.
But conditions vary state to state, city to city, and sometimes even neighborhood to neighborhood. Knowing whether home buyers have an advantage in the housing market depends on location, as it so often does in real estate.
Where home buyers have an advantage
Certain data points can give you indications of market temperatures and who they favor.
Inventory gains, elongated listing times, soft price growth and increased price reductions typically provide comparatively welcoming conditions for house hunters. The markets best demonstrating some of these traits of home buyer leverage are outlined below, based on Realtor.com data.
Among the 100 largest U.S. housing markets, Las Vegas topped the list with a 65.66% year-over-year gain in active listing count, beating jumps of 58.76% in Oxnard, Calif., and 58.15% in Durham, N.C. At the state level, Nevada led the nation with a 52.95% rise, above 48.16% in Maryland and 40.73% in North Carolina.
The tables below show the top 10 largest annual gains in listing count for July by metro area and state:
| Metro Area | Metro Size Rank | Active Listings YoY% | Active Listings MoM% | Active Listing Count | Median Listing Price | Median Days on Market | Price-Reduced Share |
| Las Vegas | 31 | 65.66% | 1.49% | 9,954 | $475,000 | 54 | 25.10% |
| Oxnard, CA | 85 | 58.76% | 2.63% | 1,617 | $1,012,500 | 50 | 20.11% |
| Durham, NC | 89 | 58.15% | -1.35% | 1,893 | $485,000 | 52 | 25.09% |
| Washington, DC | 9 | 56.47% | -1.34% | 13,669 | $612,500 | 38 | 15.60% |
| Stockton, CA | 92 | 54.42% | 6.15% | 1,501 | $595,000 | 47 | 21.22% |
| Raleigh, NC | 41 | 45.37% | 1.26% | 5,652 | $460,000 | 52 | 24.79% |
| Bakersfield, CA | 82 | 44.54% | 4.88% | 2,259 | $409,497 | 50 | 18.39% |
| San Diego | 19 | 43.54% | 2.11% | 6,245 | $987,500 | 44 | 22.86% |
| Knoxville, TN | 56 | 42.72% | 4.40% | 3,393 | $466,950 | 57 | 26.83% |
| Charlotte, NC | 21 | 42.59% | 2.32% | 9,628 | $449,433 | 53 | 27.15% |
| State | Active Listings YoY% | Active Listings MoM% | Active Listing Count | Median Listing Price | Median Days on Market | Price-Reduced Share |
| Nevada | 52.95% | 2.65% | 13,097 | $499,450 | 54 | 24.41% |
| Maryland | 48.16% | 0.56% | 13,995 | $450,000 | 39 | 16.52% |
| North Carolina | 40.73% | 2.48% | 42,574 | $424,950 | 59 | 22.68% |
| California | 36.48% | 1.64% | 77,994 | $750,000 | 52 | 19.39% |
| Arizona | 36.30% | -4.32% | 29,089 | $487,450 | 69 | 27.89% |
| Colorado | 35.97% | 3.99% | 32,276 | $599,000 | 56 | 28.41% |
| South Dakota | 35.96% | 5.90% | 3,373 | $389,900 | 51 | 16.49% |
| Virginia | 34.41% | 2.15% | 20,709 | $461,973 | 43 | 17.01% |
| Washington | 31.58% | 6.25% | 24,224 | $659,475 | 45 | 22.58% |
| New Mexico | 30.88% | 2.80% | 6,770 | $411,000 | 66 | 19.45% |
The pace of home price growth declined annually in 57 of the top 100 metros and 21 of the 50 states plus the District of Columbia.
Honolulu experienced the largest drop from July 2024, falling 7.72%. Durham, N.C., and Cape Coral, Fla., followed closely with declines of 7.62% and 7.51%, respectively. Fittingly, Hawaii topped all states with a 7.88% annual decrease, trailed by -3.62% in Colorado and -3.5% in Illinois.
The tables below show the top 10 largest annual drops in median listing price for July by metro area and state:
| Metro Area | Metro Size Rank | Median Listing Price YoY% | Median Listing Price MoM% | Median Listing Price | Active Listings YoY% | Median Days on Market | Price-Reduced Share |
| Honolulu, HI | 70 | -7.72% | 0.75% | $675,000 | 33.73% | 75 | 13.67% |
| Durham, NC | 89 | -7.62% | -2.02% | $485,000 | 58.15% | 52 | 25.09% |
| Cape Coral, FL | 63 | -7.51% | -2.17% | $415,711 | 29.38% | 101 | 21.86% |
| Oxnard, CA | 85 | -7.41% | 0.70% | $1,012,500 | 58.76% | 50 | 20.11% |
| Des Moines, IA | 78 | -5.40% | -2.57% | $350,000 | 18.75% | 59 | 22.56% |
| Austin, TX | 26 | -4.85% | -2.67% | $510,950 | 18.08% | 66 | 31.23% |
| Miami | 7 | -4.68% | -0.01% | $509,950 | 29.97% | 88 | 17.72% |
| Chicago | 3 | -4.44% | -0.76% | $377,000 | 5.44% | 36 | 15.42% |
| Los Angeles | 2 | -4.21% | -2.88% | $1,148,483 | 41.03% | 51 | 17.64% |
| Denver | 18 | -4.00% | -1.63% | $600,000 | 36.72% | 52 | 32.87% |
| State | Median Listing Price YoY% | Median Listing Price MoM% | Median Listing Price | Active Listings YoY% | Median Days on Market | Price-Reduced Share |
| Hawaii | -7.88% | -0.77% | $761,000 | 27.76% | 83 | 14.30% |
| Colorado | -3.62% | -0.16% | $599,000 | 35.97% | 56 | 28.41% |
| Illinois | -3.50% | -0.55% | $323,225 | 7.67% | 37 | 14.78% |
| California | -3.47% | -2.79% | $750,000 | 36.48% | 52 | 19.39% |
| Iowa | -3.32% | -1.72% | $289,938 | 22.64% | 54 | 18.55% |
| Delaware | -3.32% | -2.02% | $485,000 | 26.43% | 57 | 15.73% |
| Florida | -3.12% | -0.91% | $435,000 | 23.53% | 86 | 22.46% |
| Arizona | -2.39% | -2.02% | $487,450 | 36.30% | 69 | 27.89% |
| South Dakota | -2.28% | -1.29% | $389,900 | 35.96% | 51 | 16.49% |
| New Jersey | -2.10% | -0.34% | $577,500 | 19.89% | 39 | 10.63% |
By price reductions, Denver paced the nation with a 32.87% share, edging out 32.21% in Colorado Springs and 31.32% in Portland, Ore. Colorado led all states with a 28.41% price-reduced share of listings, just ahead of Oregon’s 28.38% and Arizona’s 27.89%.
Just seven of the 100 metros had price reduced shares in the single digits, while the only state below 10% was New York at 9.89%.
The tables below show the top 10 largest price-reduced listing shares for July by metro area and state:
| Metro Area | Metro Size Rank | Price-Reduced Share | Price-Reduced Share YoY% | Price-Reduced Share MoM% | Price Reduced Count | Median Listing Price | Active Listings YoY% | Median Days on Market |
| Denver | 18 | 32.87% | 0.10% | -0.79% | 7,134 | $600,000 | 36.72% | 52 |
| Colorado Springs, CO | 81 | 32.21% | 3.76% | 2.05% | 2,198 | $510,000 | 39.65% | 50 |
| Portland, OR | 27 | 31.32% | 3.41% | 1.77% | 4,798 | $599,995 | 26.30% | 55 |
| Austin, TX | 26 | 31.23% | -0.89% | -1.43% | 6,314 | $510,950 | 18.08% | 66 |
| Dallas | 4 | 31.17% | 0.59% | 0.62% | 16,498 | $439,900 | 30.21% | 53 |
| Phoenix | 10 | 30.85% | 1.97% | -2.31% | 9,208 | $505,000 | 37.27% | 70 |
| Salt Lake City, UT | 52 | 29.65% | 6.62% | 0.82% | 1,824 | $589,950 | 37.50% | 52 |
| Indianapolis | 34 | 29.47% | 4.61% | 2.77% | 3,448 | $334,273 | 28.30% | 45 |
| Jacksonville, FL | 37 | 29.05% | 0.60% | -1.07% | 4,656 | $408,495 | 16.47% | 72 |
| Tampa, FL | 17 | 28.87% | -2.50% | -2.27% | 9,040 | $415,000 | 22.19% | 73 |
| State | Price-Reduced Share | Price-Reduced Share YoY% | Price-Reduced Share MoM% | Price Reduced Count | Median Listing Price | Active Listings YoY% | Median Days on Market |
| Colorado | 28.41% | 1.07% | 0.43% | 14,672 | $599,000 | 35.97% | 56 |
| Oregon | 28.38% | 2.55% | 1.00% | 8,078 | $577,000 | 22.28% | 60 |
| Arizona | 27.89% | 1.66% | -1.56% | 13,112 | $487,450 | 36.30% | 69 |
| Texas | 25.36% | 1.16% | -0.27% | 55,952 | $375,000 | 24.08% | 60 |
| Indiana | 25.12% | 1.56% | 1.92% | 8,758 | $309,450 | 22.41% | 45 |
| Georgia | 25.04% | 2.76% | 1.08% | 20,148 | $399,250 | 30.13% | 58 |
| Utah | 24.86% | 3.96% | -1.02% | 6,052 | $599,450 | 28.90% | 61 |
| Tennessee | 24.71% | -0.93% | 0.20% | 14,392 | $439,950 | 28.4% | 60 |
| Nevada | 24.41% | 3.17% | -1.32% | 5,218 | $499,450 | 52.95% | 54 |
| Idaho | 23.14% | 2.32% | 1.80% | 3,950 | $599,450 | 15.22% | 55 |
Mortgage rate tipping point and ripple effects
With supply stacking up and demand stifled mostly by affordability, it’s starting to feel like a late-stage game of Jenga. Mortgage rates dropping could be the little push to set it all off.
While lower mortgage rates would help more prospective buyers clear the affordability hurdle, the wave of new borrowers could increase market competition and prices. Those waiting for rates to hit a certain point should take that into consideration during their home search.
“Mortgage rates would likely need to fall closer to 6% to meaningfully boost buyer demand, especially among existing owners locked in by historically low mortgage rates,” said Sam Williamson, senior economist at First American. “While a resurgence in demand could put upward pressure on prices in parts of the country, like the Northeast and Midwest where housing inventory remains tight, many areas now have supply levels closer to historical (pre-pandemic) levels, which could help temper price gains.”
The bottom line for home buyers
Be prepared. Follow all the steps to buy a house. Know whether you’re a first-time home buyer and how to qualify for a loan. Getting pre-approved gives you an affordability blueprint and a headstart on competition if rates suddenly drop.
Also, you should always negotiate your mortgage rate and see what down payment and closing cost assistance you may qualify for.
Contact a local mortgage professional if you’re ready to begin your path to homeownership.
