Housing Supply

Inventory Continues to Rebound — Housing inventory has steadily improved, surpassing 1 million active listings in both May and June, a milestone not seen since December 2019. The Midwest saw the strongest increase in new listings. This increase gives buyers more options and has shifted some formerly hot markets from more seller-friendly to more buyer-friendly territory.

Mortgage Rates

Flat and Steady, But Still Elevated — The average 30-year fixed mortgage rate held steady at 6.74% in July, marking 27 straight weeks of relative stability. While still high by historical standards, this consistency has given buyers a rare chance to plan, shop, and purchase without rate-related surprises. Looking ahead, rates are expected to remain elevated through Q3 2025, with meaningful relief unlikely until 2026.

Homes Prices

Growth Slows, but Prices Still High — While many sellers still expect full price or more, the market reality is different: 40% of homes are selling below asking, one in three sellers have reduced their price, and many are now offering concessions to attract buyers. Despite ongoing affordability challenges, buyers have more negotiating power than in recent years.

Market Activity

Starter Homes Are the Star of the Summer — While overall home sales have slowed, starter homes are gaining momentum. June sales rose 3.9% year over year (the highest in two years) and pending sales increased 3.1%, indicating continued growth. Although often associated with first-time buyers, many starter homes are now purchased by move-down or all-cash buyers seeking smaller, manageable properties. First-time buyers remain active but face strong competition and affordability challenges.