In the past 48 hours, the US housing industry has shown clear signs of cooling after a surge in inventory during the first half of 2025. While active listings remain up about 27 percent year over year, recent weeks have seen this growth flatten, suggesting the market is plateauing. New listings rose 9.3 percent for the week ending July 5 compared to last year, but this pace is no longer accelerating. Inventory at the end of June reached 1,082,520 active homes, the highest since 2019, yet still almost 13 percent below pre-pandemic levels. A notable trend is the surge in delistings, up 35 percent so far in 2025, as more sellers choose to pull their homes from the market rather than accept lower offers[1].

At the same time, home sales have slumped to the lowest pace in 16 years, dropping 0.7 percent from a year ago during the normally busy summer season. Homes are taking longer to sell, with median days on the market climbing in states like Utah, where single-family homes now take 52 days to sell versus 42 last year[2][4]. This longer wait is partly due to mortgage rates hovering just below 7 percent, despite a recent dip to 6.67 percent, their lowest since March. That rate reduction briefly boosted purchase applications by 9 percent in early July and by 25 percent compared to last year, giving hope for stronger summer sales[1][5].

Consumer behavior is shifting: more buyers are sitting on the sidelines, waiting for better deals, and sellers are increasingly offering concessions or negotiating prices. The gap between asking and selling prices has widened, with buyers typically securing homes at a 7 percent discount from the median list price. Analysts and agents report more flexibility from sellers and a sense of less urgency from buyers, marking a significant change from the bidding wars of recent years[4][6].

Industry leaders face mounting pressure from high construction costs, labor shortages, and persistent supply constraints, particularly in the Midwest and Northeast. Government responses so far have lagged behind the scale of the affordability crisis, which is compounded by corporate ownership of housing and ongoing regulatory obstacles[3].

In summary, the US housing market is moving from a period of extreme seller advantage to a more balanced, if subdued, environment. Increased inventory, longer selling times, and falling sales volumes highlight a cautious outlook, with expectations that home prices may soften further in the months ahead.

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This content was created in partnership and with the help of Artificial Intelligence AI