After years of fast-paced home sales, tight inventory and relentless price growth, the U.S. housing market may finally be entering a new chapter. According to freshly released June 2025 data from Realtor.com, Zillow and RE/MAX, the market is showing multiple signs of cooling, creating what could be a rare moment of balance between buyers and sellers.

Inventory levels are rising dramatically, homes are sitting on the market longer, and price cuts are becoming increasingly common. Meanwhile, home prices appear to be leveling off, and buyers are regaining the ability to negotiate. These trends signal a shift away from the pandemic-era frenzy toward a more balanced market.

Inventory surges to multiyear high

One of the most striking takeaways from all three reports is the sharp increase in housing inventory. According to Realtor.com, the number of homes actively for sale in June jumped 28.9% compared to a year ago, crossing the 1 million mark for the first time since 2020. The company noted that this is the 20th consecutive month of annual inventory growth, signaling a meaningful shift in supply conditions.

Zillow reported a similar trend, with 1.36 million homes on the market in June — a 17% increase from the same time last year and the highest inventory level since November 2019. The increase is driven by a combination of more new listings and homes taking longer to sell, leading to higher month-end totals.

RE/MAX, which tracks 50 metro areas nationwide, found inventory up 30.1% from June 2024 and 3.9% from May 2025, further emphasizing that the shift is broad-based and growing.

Mike Opyd, broker with RE/MAX Premier, said, “For the last few years, sellers have held off listing their properties mainly because they were not sure what to do if the home sold. The thought of losing their historically low rate to pay one that is double was extremely challenging for them to grasp. Even while properties around them sold for record prices, many still held out with the hope of rates coming down. In recent months, I have seen a shift in sellers’ mindsets. They are now accepting rates are not going to come way down, like they hoped, and have seen prices rise, so many have decided to list. This overall shift has caused an increase in inventory and more sales than in previous years.”

Price cuts become the norm

With more homes available and buyers slowing down their pace, sellers are adjusting expectations. Realtor.com reported that 20.7% of active listings had price reductions in June — the highest rate the platform has ever recorded for the month. Zillow placed that figure even higher, saying 26.6% of listings had price cuts, a record for any June since Zillow began tracking in 2018.

This trend is especially pronounced in pandemic-era hot spots such as Phoenix, Denver and Nashville, where inventory has surged and homes are lingering longer on the market.

Homes are taking longer to sell

The days of lightning-fast sales appear to be waning. According to Realtor.com, the typical home spent 53 days on the market in June — five days longer than a year ago. While this still reflects a relatively healthy pace, it aligns more closely with prepandemic levels, suggesting a return to more normal transaction timelines.

Zillow’s data echoes this trend, showing that homes took a median of 19 days to go under contract in June, up from 15 days in 2024 and 11 days in 2023. RE/MAX also saw a similar uptick in time on market, with homes averaging 31 days before sale.

Prices hold steady

Despite slower sales and more inventory, home prices have not fallen dramatically — at least not yet. Realtor.com reported a national median listing price of $440,950 in June, which is essentially flat from a year ago, up just 0.2%. RE/MAX’s report showed the median sales price at $440,000, a 2.1% year-over-year increase and 2.8% higher than May.

What it means for buyers and sellers

The rise in inventory means more options, less competition and greater opportunity to negotiate. It also means buyers no longer need to rush into offers within hours, giving them time to inspect properties and consider pricing more critically.

For sellers, however, the environment is becoming more challenging. Simply listing a home at a high price is no longer enough. Successful sellers will need to focus on competitive pricing, proper staging and flexible negotiation strategies to stand out in a crowded field.

Sales of new homes closed the year on a high note in December, rising 11.9% from November’s revised number to a seasonally adjusted, annual rate of 811,000, while the median sales price fell to $377,700, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported. 

On a year-over-year basis, the pace of new-residential sales measured in December was down 14%. Altogether, 762,000 new homes were sold in 2021, down 7.3% from the 822,000 sold in 2020. 

The seasonally adjusted estimate of new houses for sale at the end of September was 403,000, representing a supply of six months at the current sales rate, according to a press release. 

The share of completed homes/ready-to-occupy inventory in November was 9.7%, down from 13.7% a year ago, while the share of new-home inventory that was not started increased to 25% from 22%, First American Deputy Chief Economist Odeta Kushi said in a press release. 

“Demand for new homes will remain strong due to the millennial demographic tailwind,” Kushi said. “The lack of existing homes for sale nationwide to meet this demand is supportive of new construction. Indeed, you can’t buy what’s not being built.” 

By region, the number of new homes sold in the Midwest jumped 56.4% from November to 86,000 and rose 14.9% to 456,000 in the South. New-home sales were up 0.4% in the West in December, at 242,000, while they fell 15.6% in the Northeast to 27,000. 

“Despite continued supply-chain issues, builders have been able to make headway on homes, and market demand remains high,” RCLCO Real Estate Consulting principal Kelly Mangold said. “This growth is notable because November and December are historically slower months for sales due to the holidays, yet performed strongly this year.

US Housing Market