Real Estate in the Know August 28, 2025

July 2025 Housing Market: Buyer’s Market, But Still a High-Bar for Affordability

The U.S. housing market in July 2025 tipped even more in buyers’ favor—but only if you can actually afford to play in it.

  • Buyers Outnumbered by Sellers: Sellers outpaced buyers by a staggering 36.3%, equating to around 518,800 more listings than buyers—the largest imbalance since record-keeping began in 2013.

  • Buyer Hesitation Spreads: Buyers, already put off by stubbornly high mortgage rates and home prices, are backing off—so much so that sellers are now spooked. Many are pulling off the market or holding off listing when they see properties linger or selling below expectations. (Redfin+1)

  • Supply Drops, Prices Rising: With some sellers holding back, inventory is starting to shrink—pushing the median sale price up 1.4% YoY in July to a record $434,189. That’s higher than June’s 1.2% and May’s 1.1% increases.

  • Deals for the Prepared Buyer: Homes are spending more time on market—averaging 43 days in July, the slowest summer pace in a decade—giving buyers leverage to negotiate. But let’s not sugarcoat: affordability remains a massive barrier. Rates are still high, and prices continue to hang near record levels. (New York Post)

  • Buyers: You’ve got more negotiating power than you have in years. Homes are taking longer to sell, and competition is soft—but you need financial strength and readiness to act when the right opportunity emerges.

  • Sellers: The playing field has shifted sharply. The days of listings flying off the market over list price are over. If you want to succeed, get realistic—price it right, highlight value, and be ready to incentivize.