Housing Market Shifts: Sellers Losing Leverage Amid Rising Supply and Cooling Demand

As the national median home listing price rose slightly in July to $439,450, Realtor.com found that the most a homebuyer who earns the median U.S. household income can afford to spend on a home is $298,000, leaving 7 out of 10 home shoppers priced out of the market. This shift in the housing market has given buyers more leverage, particularly in regions where supply has increased, such as the South and West, prompting sellers to offer concessions, including lower prices, up-front money, and funds for closing costs and repairs. Despite this hopeful trend, the housing market remains in a slump, with sales of previously occupied U.S. homes running about 1.3% below their 2024 pace.

Key Takeaways:

• The national median home listing price rose to $439,450 in July, but buyers are struggling to afford homes in many areas, with 7 out of 10 home shoppers priced out of the market.
• Realtor.com found that the median household income cannot afford to spend more than $298,000 on a home, despite the rising median home price.
• Home shoppers may now have more leverage in markets where supply has increased, particularly in the South and West, prompting sellers to offer concessions.
• Sellers who can afford to wait are opting to pull their listings rather than be pressured into coming down on price.
• Despite the improving housing market conditions in some regions, the overall market remains in a slump, with sales of previously occupied U.S. homes running about 1.3% below their 2024 pace.
• The number of active listings has increased for 21 consecutive months, climbing nearly 25% from a year earlier, according to Realtor.com.
• Home inventory has risen in states like Texas and Florida, partly due to new home construction, but remains low in the Midwest and Northeast, where it is 40% and 50% below pre-pandemic levels, respectively.

Statistics:

• National median home listing price: $439,450 (July 2025)
• Most a homebuyer can afford to spend on a home: $298,000 (according to Realtor.com)
• Number of active listings: 21 consecutive months of increase
• Increase in active listings from a year earlier: 24.9% (according to Realtor.com)
• Home inventory in states like Texas and Florida: up sharply due to new construction
• Home inventory in the Midwest and Northeast: 40% and 50% below pre-pandemic levels, respectively
• Average time on the market: 2 months for Doug McCormick's home in Evergreen, CO
• Price reduction for McCormick's home: $70,000 (from $1.3 million to $1.28 million)

Sources:

• "Realtor.com"
• "The Associated Press" (Copyright 2025)