National Real Estate Market Update – July 2025

The U.S. housing market showed modest improvement in July, with existing-home sales increasing by 2.0% compared to June, according to the National Association of REALTORS® (NAR). On a year-over-year basis, sales rose 0.8%, reflecting the impact of improved affordability, higher inventory, and regional variations across the country. Sales grew in the Northeast, South, and West, while the Midwest experienced a slight decline.

Inventory Continues to Expand

Total housing inventory reached 1.55 million units at the end of July, up 0.6% from June and 15.7% higher than July 2024. This represents a 4.6-month supply of unsold homes—slightly down from 4.7 months in June, but well above the 4.0 months seen a year ago—indicating a market that is increasingly balanced and favorable for buyers.

NAR Chief Economist Lawrence Yun noted, “The ever-so-slight improvement in housing affordability is inching up home sales. Wage growth is now comfortably outpacing home price growth, and buyers have more choices.”

Prices Remain Stable

The national median existing-home price for all housing types was $422,400 in July, up 0.2% from last year—the 25th consecutive month of year-over-year gains. Price trends varied regionally:

• Northeast: $509,300 (+0.8% YoY)

• Midwest: $333,800 (+3.9% YoY)

• South: $367,400 (–0.6% YoY)

• West: $620,700 (–1.4% YoY)

This stability, coupled with growing inventory, suggests a market that is gradually tipping toward buyers without sacrificing value for sellers.

Buyer and Seller Activity

• Median time on market: 28 days, up slightly from 27 days in June.

• First-time buyers: 28% of all sales, slightly down from June (30%).

• Cash sales: 31%, up from 29% last month.

• Investor and second-home buyers: 20%, up from 14% in June.

• Distressed sales (foreclosures and short sales): 2%, remaining historically low.

Mortgage Rates

The average 30-year fixed-rate mortgage fell to 6.72% in July, down from 6.82% in June and 6.85% one year ago (Freddie Mac). With rates easing slightly, buyers have more flexibility to explore financing options like rate buydowns and low down payment programs.

Single-Family vs. Condo/Co-op Sales

• Single-Family Homes: Sales rose 2.0% month-over-month and 1.1% year-over-year, with a median price of $428,500 (+0.3%).

• Condominiums & Co-ops: Sales increased 2.8% from June but were down 2.6% YoY, with a median price of $362,600 (–1.2%).

Regional Highlights

• Northeast: Sales increased 8.7% month-over-month, up 2.0% YoY.

• Midwest: Sales decreased 1.1% month-over-month, up 1.1% YoY.

• South: Sales grew 2.2% month-over-month, up 2.2% YoY.

• West: Sales rose 1.4% month-over-month, down 4.0% YoY.

Key Takeaways for Buyers & Sellers

For Buyers: Rising inventory and slightly lower mortgage rates provide more choices and negotiation leverage. With price growth modest in many regions, buyers are in a stronger position to find the right home.

For Sellers: Prices remain solid, but more homes on the market mean increased competition. Effective marketing, strategic pricing, and great presentation remain essential for a successful sale.

The market continues to shift toward balance, offering opportunity for buyers while maintaining value for sellers. Staying informed is key as we move through the summer months.

Krista Freshour

Realtor

865-776-9608

Information provided by National Association of Realtors