Housing Market Shifts in Favor of Buyers

Strategic Insights -

The US housing market has seen a significant shift, with prices now falling in about half the country. This change is attributed to increased inventory and higher interest rates, making it the best time for buyers to find a home and negotiate a better price. According to the National Association of Realtors, US home prices rose by 49% in the six years from July 2019 to July 2025, but the current market trends suggest a slowdown.

Key Takeaways:

  • The US housing market has seen a 49% increase in prices over the past six years, from July 2019 to July 2025.
  • The National Association of Realtors reports that prices are now falling in about half the country.
  • The current inventory level is at its highest since May 2020, during the COVID lockdown.
  • Sellers cut prices on 27.4% of listings in July, the highest share since tracking began in 2018.
  • The West region saw the largest price decline, with a 1.4% fall to $620,700 in July.
  • The median price of existing-homes nationally was $421,400 in July, a 0.2% increase from the previous year.
  • This marked the 25th straight month of increases but also the lowest rate of price hikes in two years.
  • The Midwest recorded a 3.9% increase in prices to $333,800, while the Northeast posted a 0.8% rise to $509,300.
  • Fitch Ratings estimates that national home prices were 10.5% overvalued in the first quarter.
  • US homebuilders started construction on new homes at the quickest pace in five months in July.
  • Permits for future projects were the weakest since 2020.

Statistics:

  • The US housing market has seen a 49% increase in prices between July 2019 and July 2025. (NAR: "NAR Existing Home Sales Report Shows 2.0 Increase in July")
  • 27.4% of listings had price cuts in July, the highest share since 2018. (Zillow: "July 2025 Market Report")
  • The median price of existing-homes nationally was $421,400 in July, with a 0.2% increase from the previous year.
  • The Midwest saw a 3.9% increase in prices to $333,800, while the Northeast posted a 0.8% rise to $509,300. (NAR: "National Association of Realtors Existing Home Sales Report")
  • National home prices were 10.5% overvalued in the first quarter, according to Fitch Ratings estimates.

Sources:

  • Axios: "Housing Market: July Interest Rates"
  • National Association of Realtors: "NAR Existing Home Sales Report Shows 2.0 Increase in July"
  • Zillow: "July 2025 Market Report"
  • Bloomberg: "US Existing Home Sales Rise as Price Growth Simmers Down"
  • Fitch Ratings: estimates of national home prices
  • Axios: "Homebuilding Slump: PM"