Realtor.com Reports Slowing U.S. Housing Market with Regional Variations

What's Happening?

The U.S. housing market in July 2025 showed signs of slowing momentum, according to the Monthly Housing Market Trends Report from Realtor.com. Active listings increased by 24.8% compared to July 2024, marking the 21st consecutive month of annual inventory growth. However, the pace of expansion has tapered, and total listings remain 13.4% below pre-pandemic norms. Regional variations were noted, with the West leading inventory gains at 32.5%, followed by the South at 25.4%, the Midwest at 18.1%, and the Northeast at 15.5%. Homes are spending longer on the market, with the median time rising to 58 days nationwide, up seven days from a year earlier. Price trends diverged by region, with the South and West experiencing declines, while the Northeast and Midwest saw stable or slightly higher prices.

Why It's Important?

The slowing housing market has significant implications for buyers and sellers across the U.S. The increase in inventory provides more options for buyers, potentially easing competitive pressure. However, the longer time homes spend on the market and regional price declines could indicate a cooling market, particularly in the South and West. This shift may affect real estate investments and economic activity in these regions. Sellers may face challenges in achieving desired prices, while buyers could benefit from more favorable conditions. The geographic divergence in price trends highlights the uneven recovery and ongoing adjustments in the housing market.

What's Next?

The report suggests that while the market is gradually shifting toward balance, uneven conditions persist. The South and West are cooling more quickly than the Northeast and Midwest, which could influence future real estate strategies and investments. Slowing inventory growth may maintain competitive pressure for buyers, even as time on market increases and price growth moderates. Stakeholders, including real estate agents, investors, and policymakers, will need to monitor these trends closely to adapt to changing market dynamics.