Nationwide home listings climb as sellers re-enter market

The narrative of a persistently tight US housing market may be shifting, as recent data from Realtor.com indicates a significant increase in available homes for sale. This surge in inventory, observed across many parts of the nation, is offering a glimmer of hope for prospective homebuyers who have contended with fierce competition and escalating prices for years.

The number of active listings in the US has notably climbed, with some reports indicating a 31.5% year-over-year increase in May 2025, marking the 19th consecutive month of annual inventory growth. For the first time since winter 2019, the total number of homes for sale has surpassed 1 million. While still below pre-pandemic levels by about 14%, this upward trend suggests the market is gradually rebalancing, Realtor.com noted.

This growth in inventory is largely attributed to a combination of factors. New listings have increased, and some existing homeowners, who may have previously been locked in by lower mortgage rates, are now choosing to sell. According to analysts, this suggests a growing acceptance that high mortgage rates may persist, prompting sellers to re-enter the market.

However, the impact of this increased supply is not uniform across the country. Regions like the West and South have seen particularly strong inventory recovery, with some metropolitan areas like Denver, Austin, and Seattle experiencing significant increases in available homes compared to pre-pandemic norms. Conversely, the Midwest and Northeast continue to lag, with inventory levels still substantially below historical averages.

Housing market shift

While the increase in inventory is generally seen as positive for buyers, it comes amid a backdrop of elevated mortgage rates and a slight cooling in buyer demand. Pending home sales have seen a year-over-year decline, indicating that while there are more options, buyers remain cautious. This environment is leading to a more modest pace of home price appreciation nationally, and in some areas with the greatest inventory gains, home prices are beginning to soften or even decline.

Analysts suggest that this shifting dynamic could lead to a more favorable outlook for the housing market in the latter half of 2025, especially if mortgage rates show further improvement. The ongoing challenge remains affordability, as home prices, despite moderating growth, are still at high levels relative to incomes in many parts of the country.

The market continues to navigate a complex interplay of supply, demand, and interest rates. For now, the rising tide of housing inventory signals a potential reprieve for buyers, offering more choice.

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