It’s a bit of a head-scratcher out there right now. You’d think that with more homes hitting the market, things would be buzzing. But that’s not exactly what’s happening. The housing market gets more supply of homes, but buyers hit pause, creating a bit of a standstill. While there are more choices for potential homeowners, the actual buying and selling isn’t picking up speed as you might expect.

From my perspective, looking at how things are playing out, this slowdown isn't a surprise. We've seen this dance before. Homeowners are hesitant to sell because they might have locking in a low mortgage rate a few years back, and buying a new place means taking on a new loan at a higher rate. Plus, for buyers, even with a bit more inventory, affordability is still a big hurdle. So, while the shelves are getting a little fuller, people are mostly window shopping for now.

Housing Market Gains Supply But Buyers Hit Pause in 2025

More Listings, But Where's the Rush?

Looking at the numbers, especially from Realtor.com®, it’s clear that sellers are starting to come back around. The first week of October actually saw more new homes pop up for sale compared to the weeks right before it. This is a good sign, reversing a short dip we saw. However, the overall energy of the market hasn't really changed much.

Hannah Jones, a senior economic research analyst at Realtor.com®, points out something important: “Homes continue to spend more time on the market than last year, and prices remain flat, signaling higher inventory and lower competition.” This tells me that even though there are more homes available, there aren’t as many folks rushing to grab them. It’s like a store putting more items out, but nobody’s lining up to buy them.

It’s also worth noting this isn't a one-size-fits-all situation. While the national scene is pretty mellow, some spots in the Midwest and Northeast are still pretty hot. These areas often have fewer homes to begin with, and when demand is high, buyers have to be super ready and quick to make an offer.

Inventory is Growing, But Slower Than It Used To Be

The big story is that the total number of homes you can choose from across the country has gone up quite a bit – about 15.1% compared to this time last year. That’s a significant increase, no doubt.

But here’s where it gets interesting: the pace at which this inventory is growing has actually started to slow down. It’s been happening for 17 weeks straight. Think of it like a bathtub filling up. The water level is rising, but the faucet isn't gushing as much as it was. As of October 4th, we had about 1.1 million homes on the market nationwide.

Hannah Jones explains this dynamic: “Active inventory is growing significantly faster than new listings, an indication that more homes are sitting on the market for longer and homeowners aren’t eager to sell.” This is a crucial point. It means the homes that are already listed are just… staying there longer. This isn't because of a flood of new sellers, but because homes aren't selling quickly.

Prices are Stable, But Maybe Not as Strong as They Seem

When we look at prices, the median list price hasn’t budged a whole lot when you compare it to the same week in 2024. It’s flat. However, if you adjust for the size of the home, the price per square foot has actually dipped by about 0.5% year-over-year. This is the fifth week in a row that this has happened.

My take on this is that while sellers might not be slashing prices dramatically, the underlying value of homes might be feeling some pressure. Hannah Jones puts it well: “Price per square foot grew steadily for almost two years, but the weak sales activity has finally caught up and shaken underlying home values despite stable prices.” Essentially, even if the sticker price looks the same, the home’s true worth, based on what buyers are willing to pay now, might be a little less.

Homes are Taking Their Time

Another big signal from the market is how long homes are hanging around before they sell. The typical home is now taking about 63 days on the market. For reference, this is pretty similar to what we saw before the pandemic really kicked into high gear.

This longer time on the market is a double-edged sword for sellers. On one hand, it means they have less pressure to sell immediately. On the other hand, as homes sit longer and longer, sellers often get more motivated to make a deal. Jones notes, “As homes spend longer on the market, sellers are more likely to reduce their asking price, eager to close a sale before the end of the year.” So, while prices might be flat overall, we might see more price reductions as the year winds down and sellers want to get rid of their properties.

What This Means for You

For buyers, this current situation presents a bit of a silver lining. You have:

• More Choices: With more inventory, you aren't as likely to be in a bidding war.
• More Time: You can take your time looking at properties without the intense pressure of just a few weeks ago.
• Potential for Negotiation: Homes staying on the market longer can give you more room to negotiate on price or terms.

However, it's still tough:

• Affordability Concerns: Higher mortgage rates are still a major barrier for many.
• Competition in Hot Areas: Don’t forget that some markets are still very competitive.

For sellers, it means:

• Patience is Key: Your home might take longer to sell than it did a year or two ago.
• Realistic Pricing: It's crucial to price your home competitively from the start.
• Be Prepared for Offers: You might need to be open to negotiation.

Ultimately, the housing market gets more supply of homes but buyers hit pause because the economic currents are complex. While more homes are available, the affordability challenges and the lingering uncertainty mean that many are waiting on the sidelines. It will be interesting to see how this plays out as we move into the new year.

It’s a tale of two housing markets in 2025. While overall inventory is climbing, the story isn't the same everywhere. Some areas are seeing a flood of homes for sale, while others remain bone-dry, creating a significant divide that buyers and sellers alike need to understand.

If you’re looking to buy or sell a home this year, pay close attention, because where you are matters more than ever.

For a while now, I've been watching the housing market closely, and it feels like we’ve entered a new phase. Gone are the days of bidding wars on every street and homes selling in a blink of an eye. Instead, we're seeing a more nuanced market, and the biggest story of 2025 has to be this growing inventory divide. It’s not just about more houses being available; it’s about where those houses are, and what that means for prices and competition.

Housing Market 2025: Booming vs. Shrinking Inventory Across America

According to the September 2025 Monthly Housing Market Trends Report from Realtor.com®, actively listed homes across the country have jumped by a healthy 17.0% compared to last year. That's a good sign for buyers, meaning more choices on the table. However, the speed at which this inventory is growing has actually slowed down since May. Think of it like this: the tide is still coming in, but it’s not rushing in quite as fast. Even with this increase, we're still 13.9% below where we were before the pandemic hit, which keeps things from feeling too, too easy.

But here’s where it gets really interesting and a bit complicated: this inventory growth is not happening evenly. The Realtor.com® report highlights a widening gap between regions. Places in the South and West are actually seeing more homes for sale than before the pandemic, and they're still adding to that supply. On the flip side, the Northeast and Midwest are still struggling with serious inventory shortages.

This isn't just a small difference; it's a major shift that’s changing the game for people looking to buy or sell.

The Regional Story: Oceans Apart in Inventory

Let's break down this regional divide. It’s the biggest story in housing right now, and it’s fundamentally changing what it means to be a buyer or seller depending on where you live.

Where Inventory is Booming (or at least Recovering Well):

The South and West are leading the pack in inventory recovery. According to Realtor.com® data from September 2025, these regions have not only surpassed their pre-pandemic inventory levels but are still seeing that supply grow. Metros like Denver and Austin, which were once incredibly tight markets, now have significantly more homes available than they did in the 2017-2019 period. Denver, for example, is 59.6% above its pre-pandemic inventory norm! Austin isn't far behind, at 46.9%. This is a huge shift from just a few years ago.

We're seeing year-over-year inventory growth in all four major regions, but the West is seeing the fastest pace at +21.1%, followed closely by the South at +17.9%. Even within these booming areas, some cities are really standing out. Washington, D.C. saw active listings jump by a massive 48.7% year-over-year, and Las Vegas is up 40.8%.

What's behind this surge? A combination of factors could be at play. In some of these faster-growing areas, there might have been more new construction built during the boom years that is now coming onto the market. Also, sellers in these markets might be more motivated to list as prices have held strong or are even increasing on a per-square-foot basis, especially in the Northeast.

Where Inventory Remains Scarce (The Supply Crunch Continues):

In stark contrast, the Northeast and Midwest are still deeply undersupplied. These regions are the ones grappling with the aftermath of years of limited building and a sustained demand. Realtor.com® data shows that the Northeast is still 48.6% below pre-pandemic inventory levels, and the Midwest is 36.4% below.

The pace of inventory growth in these areas is much slower. The Midwest saw an increase of 13.2% year-over-year, while the Northeast lagged behind at 10.1%. This means that while there are more homes than last year, there still aren't nearly enough to go around for the number of people who want to buy.

Cities like Hartford, CT, are experiencing the most severe shortages, sitting a staggering 74.8% below their pre-pandemic inventory. Chicago isn't doing much better, at 56.9% below, and Providence is 55.1% below. These are areas where finding a home is still a significant challenge for buyers, and competition remains fierce.

My Take: This regional divergence makes perfect sense when you think about population shifts and building trends. The South and West have been magnets for people moving from more expensive states, and while building might have lagged temporarily, it often picked up more steam there. The Northeast and Midwest, particularly older industrial areas, have faced demographic challenges and less robust new construction over decades, exacerbating the current supply crunch.

The Flow of Homes: New Listings and Pending Sales

It’s not just about the total homes on the market; the flow of new listings and how quickly homes go under contract tells us a lot about the momentum of the market.

New Listings: A Mixed Bag

Nationally, Realtor.com® reported a slight dip in newly listed homes by 1.2% year-over-year in September 2025. This follows a strong September in 2024, making the year-over-year comparison a bit tricky. New listings are also down 1.8% since last month and are significantly below their April peak for the year.

However, the trend is different by region. The Northeast and Midwest actually saw an increase in new listings (+1.3% and +2.4%, respectively). This might be contributing to the relative inventory gains in those areas. On the other hand, the South saw a decrease of 3.5%, and the West was flat at -0.1%.

Cities that saw the strongest growth in new listings include Indianapolis (+10.6%), Charlotte (+9.7%), and Detroit (+8.0%).

Pending Sales: Slowing Down

While inventory is up, buyer enthusiasm, as measured by pending sales, is more subdued. Nationally, pending sales—homes that are under contract and waiting to close—were flat year-over-year. This is the first time we haven't seen a year-over-year decrease in pending sales in 2025, which is a slight positive, but it’s a far cry from the rapid sales we saw a few years ago.

This slowness in pending sales, combined with the increasing inventory, is what's giving buyers a bit more breathing room.

Momentum: How Long Homes Are Sitting and What They're Selling For

The pace of the market is a crucial indicator. Data from Realtor.com® in September 2025 shows that the typical home spent 62 days on the market. That's a full week longer than last September. This marks the 18th consecutive month where homes have taken longer to sell compared to the previous year. This extended time on market is a key reason why inventory is climbing.

Time on Market: The Slow Clock Ticks Louder

• West: Homes are taking 10 days longer to sell compared to last year.
• South: An 8-day increase in days on market.
• Midwest: A modest 3-day increase.
• Northeast: The slowest change at just 1 day longer.

Interestingly, when we look at this compared to pre-pandemic times, only the West is experiencing slower sales. The South, Midwest, and especially the Northeast are actually selling homes faster than they did before COVID-19. This again underlines the severe supply constraints in the Northeast.

Metros like Miami (+16 days), Orlando (+14 days), and Las Vegas (+13 days) are seeing homes sit the longest, reinforcing the broader cooling trend in those areas.

My Observation: This slowdown in market speed is significant. It gives buyers more time to see homes, consider their options, and negotiate. Sellers can't just list a home and expect it to fly off the shelves anymore. It requires more strategic pricing and marketing.

List Prices: Flat Nationally, But Regional Declines and Nuances

The national median list price held steady at $425,000 in September 2025, unchanged from last year. However, when you dig deeper, the story shifts dramatically. The West saw prices dip by 3.6% year-over-year.

On a price per square foot basis – a better measure of value that accounts for home size – the differences are even starker:

• Northeast: Prices are rising (+3.1%).
• Midwest: Prices are also seeing modest increases (+1.2%).
• South: Prices are falling (-1.2%).
• West: Prices are also falling (-1.6%).

This means that while the national average might look stable, homes in the Northeast are becoming more expensive on a per-square-foot basis, while those in the West and South are becoming relatively cheaper, even if the overall median list price hasn't moved much.

Price Cuts: A Buyer’s Best Friend (Especially in Certain Areas)

Price cuts are still a defining feature of the 2025 market. Nearly 20% of listings nationwide saw a price reduction in September. This is up slightly from last year, and it signals that sellers are adjusting their expectations.

Where Sellers Are Cutting Prices:

The Realtor.com® data reveals that price cuts are more common at the lower end of the market. Sellers listing homes under $350,000 are the most likely to cut their prices. In contrast, sellers of luxury homes (over $1 million) are much more patient, with fewer price reductions on their listings. This makes sense; typically, sellers of more affordable homes need to sell to purchase their next property, making them more sensitive to market conditions. Luxury sellers often have more flexibility.

Regional Differences in Price Cuts:

The Northeast stands out with fewer price cuts (14.0% of listings), again highlighting its strength as a seller's market due to low inventory. The Midwest (19.2%), South (21.1%), and West (20.9%) all saw a higher percentage of listings with price reductions.

Let's Look at Specifics from the Realtor.com® Report:

Imagine Portland, OR, a city with a lot of price cuts. Here, nearly 34.2% of homes under $350k got a price cut, while only 23.6% of homes over $1 million did.

Now, contrast that with Hartford, CT, a much hotter market. In Hartford, price cuts are much less common overall (only 11.0% of listings), and they don't vary as much by price tier. In fact, they are slightly more common at the top of the market, which is the opposite of the national trend. This is a telling sign of just how tight inventory is in places like Hartford.

Putting It All Together: My Expert Take

As someone who has navigated countless real estate transactions, I see this housing market divide as the most critical trend of 2025.

• For Buyers: If you are in a Southern or Western market where inventory is booming, you are in a much stronger position. You have more choices, more time to decide, and more leverage to negotiate. You might even find sellers more willing to offer concessions. However, if you're looking in the Northeast or Midwest, be prepared for a much tougher competition. You'll need to act quickly, have your finances in order, and be ready for potential bidding wars, even if they aren't as intense as a couple of years ago.
• For Sellers: The old golden rule applies here more than ever: location, location, location. If you're in a high-inventory market (South/West), you'll likely need to be more competitive with your pricing and be open to negotiations. If you're in a low-inventory market (Northeast/Midwest), you're in a much better position to command a good price. However, even in hot markets, beware of overpricing. Even the best markets can see homes sit if the price isn't right. My advice for sellers is to focus on presenting your home immaculately and pricing it strategically based on recent comparable sales, not just wishful thinking. Even a slightly “hotter” market can cool rapidly if inventory suddenly increases or buyer demand wanes.

This divergence also means that national real estate news can be misleading. What’s happening in New York City is very different from what’s happening in Phoenix. Understanding your local market's specific inventory levels, days on market, and price trends is paramount for making smart decisions.

The housing market is always a moving target, but in 2025, the direction your target is in, geographically speaking, is making all the difference.

If you're keeping an eye on the real estate world, you've likely noticed things have felt a bit… slow. And you're right. The latest data from the National Association of REALTORS® (NAR) confirms that the housing market remains sluggish with a dip in home sales in August. While the change might seem small – just a 0.2% drop from July – it adds to a picture of a market that's still finding its footing. What does this mean for you, whether you're thinking about buying a home or selling the one you have? Let's dive in.

Housing Market Update 2025: NAR Report Indicates Sluggish Trends

These shifts, even small ones, are important signals. They often point to larger forces at play, like interest rates, the number of homes available, and how much people can afford. The fact that sales decreased slightly in August, reaching a seasonally adjusted annual rate of 4.0 million, tells us that the buying frenzy we saw not too long ago has definitely cooled.

A Closer Look at the Numbers: What Did August Show Us?

The NAR's Existing-Home Sales Report is like a regular health check for the housing market. It gives us a clear snapshot of where things stand. Here's a breakdown of what August revealed:

• Month-over-Month: Sales dipped by a modest 0.2%. While not a huge plunge, it's enough to confirm the ongoing sluggishness.
• Year-over-Year: Interestingly, when we compare August of this year to August of last year, we actually see an 1.8% increase in sales. This suggests some growth compared to the previous year, but that growth is happening from a slower baseline.
• Inventory: The supply of homes for sale, often called inventory, also saw a bit of a dip, down 1.3% from July. However, this is still higher than last year, which is generally good news for buyers looking for more options. We're looking at about 1.53 million homes available.
• Months' Supply: This measures how long it would take to sell all the homes currently on the market if no new ones were listed. In August, it was 4.6 months. This is pretty stable compared to last month and up from 4.2 months last year. It's still not a huge buyer's market, but it’s not a severe seller’s market either.

Why the Slowdown? It's All About the Money and the Homes.

Lawrence Yun, NAR's Chief Economist, hit the nail on the head. He pointed to two big reasons for this sluggishness: elevated mortgage rates and limited inventory. And honestly, that's been the story for a while now.

• Mortgage Rates: When mortgage rates are high, the monthly payment for a home shoots up. This makes it harder for many people to afford the homes they want, or even to qualify for a loan. While rates have been inching down, they're still higher than many buyers remember from a few years back. The average 30-year fixed-rate mortgage in August was 6.59%, down a bit from July (6.72%) but still a significant factor.
• Inventory: Even with a slight dip in the number of homes for sale in August, the overall picture is still one where there simply aren't enough homes, especially affordable ones, to meet demand. Think about it: if there are fewer homes available, there's less competition for buyers, but also fewer opportunities for sellers.

Regional Differences: Not All Markets are Created Equal

What's happening in the housing market isn't uniform across the country. Some areas are feeling the slowdown more than others.

• Northeast: This region saw a pretty noticeable 4.0% decrease in sales month-over-month. Prices here are also the highest, with a median of $534,200, up 6.2% year-over-year.
• Midwest: Here's a bright spot! The Midwest saw a 2.1% increase in sales month-over-month. This is largely because homes in the Midwest are more affordable. The median price is a much lower $330,500, up 4.5% from last year. Yun highlighted this affordability as a key driver.
• South: This region experienced a 1.1% decrease in sales. The median home price here is $364,100, showing a small increase of 0.4% year-over-year.
• West: Sales in the West also saw a slight increase of 1.4% month-over-month. However, this region has by far the highest median home price at $624,300, up 0.6% from last year.

It's always important to remember that national statistics are just averages. Your local housing market could be behaving quite differently, so keeping an eye on your specific area is crucial.

Region	Month-over-Month Sales Change	Year-over-Year Sales Change	Median Sales Price (August)	Year-over-Year Price Change
Northeast	-4.0%	-2.0%	$534,200	+6.2%
Midwest	+2.1%	+3.2%	$330,500	+4.5%
South	-1.1%	+3.4%	$364,100	+0.4%
West	+1.4%	-1.4%	$624,300	+0.6%

What About Home Prices? They're Still Going Up (Mostly).

Despite the sluggish sales, home prices continue to show resilience. The median existing-home price for all housing types hit $422,600. That's a 2.0% increase from last year. This marks the 26th consecutive month of year-over-year price increases.

This might sound confusing: why are prices still going up if sales are slow? It largely comes back to inventory. When the supply of homes is tight, even with fewer buyers, sellers can often hold firm on prices, and sometimes even see increases. However, the rate of price growth has certainly slowed compared to the booming market of a few years ago.

Who's Buying and Selling? A Look at the Buyers

The report also gives us insights into who's making moves in the market:

• First-Time Homebuyers: They made up 28% of sales in August, which is unchanged from July but up from 26% in August 2024. This is an important demographic. As affordability continues to be a challenge, seeing a stable or slightly increasing share of first-time buyers is a positive sign for the future. It suggests that some of the market's demand is still being met, even if it's a struggle.
• Cash Sales: 28% of transactions were cash sales. This figure decreased slightly from the previous month. Cash buyers often have an advantage as they don't rely on mortgage financing, which can be a hurdle for many.
• Investors: Individual investors or second-home buyers accounted for 21% of transactions. This is slightly up from last month, indicating that investors are still active in the market, perhaps seeing opportunities.
• Distressed Sales: These are sales of homes in foreclosure or short sales. They remain very low, at just 2%, showing that the market isn't flooded with drastically cheap, distressed properties.

My Take: What This Means for You

From my perspective, this data paints a picture of a market that's trying to find a new balance. It's not the red-hot seller's market of a few years ago, nor is it a buyer's dream market either.

• For Buyers: This period of sluggishness could be a good time to explore your options. While prices are still high and interest rates are a concern, the slight increase in inventory and the slower pace of sales might give you a little more breathing room and negotiation power than you would have had recently. The Midwest region, in particular, stands out as a more affordable area to consider. However, you still need to be prepared financially, especially with those mortgage rates.
• For Sellers: If you're thinking of selling, patience might be key. The market is still moving, but homes might be taking a bit longer to sell – 31 days on average in August, up from 28 days last month. Pricing your home correctly from the start is more important than ever. While you might not get multiple offers within hours, a well-maintained and well-priced home will still attract buyers.

Looking Ahead: What to Watch For

The future of the housing market hinges on a few key factors:

• Mortgage Rates: This is the big one. If rates continue to fall, we'll likely see a significant boost in buyer activity.
• Inventory Growth: More homes hitting the market, especially in starter and mid-range price points, would really help to ease some of the affordability pressures.
• Economic Stability: A strong economy generally supports a healthy housing market. Continued job growth and wage increases can help more people afford homes.

The NAR's Chief Economist, Lawrence Yun, is optimistic that declining mortgage rates and increasing inventory will boost sales in the coming months. He also noted that while the upper end of the market might benefit from homeowners' increased wealth, the lack of affordable inventory will continue to constrain sales at the lower end.

The housing market is a complex beast, always influenced by a multitude of economic and social factors. While August showed us a market that's still taking its time, it's also a market that shows signs of potential improvement as interest rates ease and more homes come online. Keep an eye on these trends; they'll tell us more about where the market is headed next.

This news likely brings a smile to the faces of many house hunters: seven major cities have officially transitioned into buyer-friendly housing markets in 2025, a significant shift that gives ordinary folks more power when it comes to purchasing a home. If you're looking to buy, this means you might finally have the upper hand after a long period where sellers called all the shots.

For years, we've been talking about how tough it is to buy a house. Prices were through the roof, bidding wars were common, and you had to act lightning fast. But something has changed. The latest data from Realtor.com shows that the national housing market is finally finding a more balanced footing, with a five-month supply of homes for sale. This is the first summer in nine years that the market has hit this level of equilibrium.

7 Buyer-Friendly Housing Markets in 2025 With Abundant Homes for Sale

Understanding the “Months of Supply”

To really get why this news is important, we need to understand what “months of supply” means. Think of it like this: it's how long it would take to sell every single house currently listed on the market if no new homes were added and sales continued at the same speed.

• Less than 4 months of supply: This is a seller's market. Sellers are in the driver's seat. Homes sell quickly, often with multiple offers, and prices tend to go up.
• 4 to 6 months of supply: This is a balanced market. Both buyers and sellers have a decent amount of say. It’s not a free-for-all, but there are opportunities for negotiation from both sides.
• More than 6 months of supply: This is a buyer's market. Buyers have more choices, more time to make decisions, and a better chance of negotiating prices and terms.

The fact that the national supply has reached five months means we're officially heading into a more neutral zone. But as is often the case with real estate, the big picture doesn't tell the whole story. When we zoom in on specific cities, a much more interesting and complex picture emerges.

Where Buyers Are Winning: The Top Buyer's Markets

While the national trend is encouraging, seven big cities are now firmly in buyer's market territory, meaning they have at least six months of supply. This is where house hunters have the most leverage, though no two markets are exactly alike.

Let's take a closer look at the cities leading this shift:

1. Miami, Florida: Nearly 10 Months of Supply

Miami takes the crown as the city with the highest months of supply among the top 50 metros, boasting nearly 10 months. This means it would take close to ten months to sell everything currently listed at the current sales pace.

Back in June, when this data was collected, the median list price was around $510,000, which was actually down 4.7% from the previous year. And the number of homes available for sale had a big jump of 35% compared to the year before. Homes were also taking longer to sell, with typical listings sitting on the market 15 days longer than the year prior. By August, this trend continued, with median prices dipping slightly and homes taking even longer to find a buyer.

Now, I've been watching the Miami market for a while, and it's always been a bit of a beast. Even with these buyer-friendly numbers, it’s important to understand what’s really going on. You see, some folks, like local real estate agent Ana Bozovic, argue that calling Miami a blanket “buyer's market” isn't the whole truth. She points out that while certain types of homes, like older condos under $500,000, might offer buyers more room to negotiate, other segments are still quite hot.

For instance, she says that single-family homes under $500,000 are almost “extinct” in Miami. So, if you're looking for one of those, you won't have much negotiating power. However, in the sub-$500,000 condo market, buyers might find more opportunities, partly because of new rules that require higher reserves for condos. This really highlights my own experience: real estate is never one-size-fits-all. You've got to know the nitty-gritty of the specific neighborhood and the type of property you're interested in.

2. Austin, Texas: Close to 8 Months of Supply

Austin, a city that experienced incredible growth during the pandemic, is now the second-biggest buyer's market. In June, it had 7.7 months of supply. This means the frenzy has cooled down, and there are significantly more homes on the market than buyers eager to snatch them up at any price.

In Austin, nearly 33% of all listed homes had price cuts in June, with the median listing price dropping by 4.5% to about $524,950. That's a huge number, meaning roughly one out of every three homes for sale came with a discount. The number of available homes also saw a massive increase, nearly 70% higher than pre-pandemic levels. By August, the typical price was just under $500,000, and that high percentage of price reductions continued.

Austin is relatively new to this buyer's market status, only crossing that six-month supply mark in June. This rapid shift is a clear indicator of how quickly market dynamics can change.

3. Orlando, Florida: 6.9 Months of Supply

Another major city in Florida, Orlando, also found itself in buyer's market territory with 6.9 months of supply in June. This aligns with the cooling trends seen in the housing market of the city famous for its theme parks.

In June, the median listing price in Orlando was $429,473, down 3.4% from the previous year. The inventory of homes for sale rose by nearly 34% year-over-year, while the pace of sales slowed. By August, prices dipped even further to $422,694, and homes were staying on the market, on average, 14 days longer. Orlando has been in a buyer's market since January, which shows a sustained shift rather than a temporary blip.

As Realtor.com senior economist Jake Krimmel correctly points out, markets like Miami, Austin, and Orlando have been moving towards buyer-friendly conditions for a while. He notes that the rise in inventory, longer times on market, and increased price reductions are clearly visible in these areas, as well as in much of the South and West of the country. He anticipates these trends might continue, making the upcoming fall season a good time for buyers who are patient and have their finances in order.

Four More Cities Joining the Buyer's Market Club

Beyond these top three, four other major cities are also experiencing conditions that favor buyers:

• New York City, New York: 6.7 months of supply. This might surprise some folks, considering New York's reputation for high prices and a historically tight market. However, Krimmel points out that there are signs of softness beneath the surface. Unlike other parts of the Northeast, New York hasn't seen price surges, and the price per square foot has actually decreased year-over-year recently.
• Jacksonville, Florida: 6.3 months of supply.
• Tampa, Florida: 6.3 months of supply.
• Riverside, California: 6.1 months of supply.

The inclusion of New York City in this list is particularly interesting. It shows that even in traditionally strong seller's markets, economic shifts and changing buyer behavior can create opportunities.

Why Are Sellers Listing and Then Delisting?

This shift to buyer's markets isn't just about more homes being available; it's also about what sellers are doing—or not doing—with their properties. The national housing market saw something of a standstill this summer. With affordability still a concern and mortgage rates remaining elevated, many buyers are hesitant.

This has led to a couple of key behaviors from sellers:

• Price Reductions: Over a quarter of homes for sale across the U.S. had a price cut in August. This is up slightly from the previous year, with buyers in the South and West most likely to find discounted properties.
• Delistings: Frustrated by the lack of buyer interest at their asking prices, some sellers are simply taking their homes off the market. Instead of lowering prices, they're choosing to wait for conditions to improve. In July, the number of delisted homes nationwide jumped a significant 57% compared to the year before. Cities like Miami, Phoenix, Riverside, and Tucson saw the most homes being pulled from the market.

This delisting trend is a double-edged sword. On one hand, it reduces the overall supply, which could eventually put upward pressure on prices. However, for now, it signals that sellers are either unwilling or unable to drop their prices to match current market realities, leading to a stalemate that buyers can often exploit for better deals.

Expert Opinions and My Take

As someone who has followed the housing market for years, I've seen my fair share of cycles. What I'm observing now is a necessary course correction. The post-pandemic boom was driven by a unique set of circumstances – ultra-low interest rates and a surge in demand as people looked for more space. Now, we're seeing a return to more sustainable market conditions.

The data from Realtor.com is crucial because it uses actual sales figures and inventory levels. It’s not just speculation; it’s based on what’s happening on the ground. This shift to buyer's markets in these seven cities is a tangible sign that buyers have more breathing room.

My own experience tells me that when inventory rises and homes sit longer, buyers gain significant negotiation power. They can often ask for concessions, negotiate on price, and avoid the stressful bidding wars that have characterized the market recently. However, as the Miami example shows, informed buyers are the ones who will win. Understanding the nuances of specific neighborhoods and property types is key. Just because a city is labeled a buyer's market doesn't mean every single home is a bargain.

The rise in delistings is also a strong indicator of seller sentiment. When sellers start delisting rather than discounting, it shows how much they are anchoring to previous sale prices or their own perceived value, which may no longer align with what buyers are willing or able to pay. This can, paradoxically, create more opportunities for those buyers who are still actively searching, as they might encounter less competition in the immediate term.

For aspiring homeowners, this is a moment to be strategic. Do your homework on the specific metro areas that interest you. Look at the inventory levels, the typical time on market, and recent price trends. Don't be afraid to negotiate. The days of accepting asking price without question might be fading, at least in these seven cities.

We're moving towards a more balanced housing market overall, but these seven cities are leading the charge toward buyer-friendliness. It's a great time to be a buyer, provided you’re prepared and informed. The market is signaling a change, and those who pay attention will be best positioned to take advantage of it.

Imagine a world where the value of homes in just a few cities adds up to more money than many small countries possess. Well, that world is ours, and it’s a reality right now in the United States. In fact, nine metro areas across the U.S. now boast housing markets each worth more than $1 trillion, collectively holding a significant portion of the nation's total housing wealth. This incredible concentration of wealth highlights not just the soaring costs of homes in these desirable locations but also the shifting dynamics of the entire American housing market.

According to a new Zillow® analysis, the housing market in the United States has reached an astonishing record high of $55.1 trillion, a monumental jump of $20 trillion since early 2020. While the overall growth has slowed a bit in the past year, gaining a still impressive $862 billion, these nine “trillion-dollar clubs” are at the heart of understanding where real estate money truly sits.

The Grand Overview: A Shifting Housing Landscape

For many of us, our home is the biggest investment we'll ever make. So, when home values go up or down, it directly affects our financial well-being and, by extension, the broader economy. What's truly interesting to see is how the map of housing wealth is redrawing itself. Places that were booming during the pandemic, often called “boomtowns” in the Sun Belt, are now cooling off. Meanwhile, new areas, especially in the Northeast and Midwest, are seeing a resurgence in housing value.

Consider this: since early 2020, states like California ($3.4 trillion), Florida ($1.6 trillion), New York ($1.5 trillion), and Texas ($1.2 trillion) saw the biggest total gains in housing value. But when we look at the last year (July 2024–June 2025), things changed. Florida's housing market actually lost $109 billion, and California's dropped by $106 billion. Texas also saw a decrease of $32 billion. It's a clear signal that the housing market isn't a one-size-fits-all story; different regions are experiencing very different trends.

So, where did the gains go? Look to the Northeast. New York added a massive $216 billion in value over the last year, grabbing a quarter of the national growth. Its neighbor, New Jersey, wasn't far behind with $101 billion in gains, followed by Illinois ($89 billion) and Pennsylvania ($73 billion). This shift suggests that the factors driving growth are changing, perhaps moving away from pure affordability and more towards established economic hubs.

The $1 Trillion Club: America's Richest Housing Markets Revealed

It’s truly remarkable to think that several individual metro areas hold housing wealth comparable to or even exceeding the entire gross domestic product of some nations. These aren't just big cities; they are economic powerhouses, attracting businesses, talent, and, consequently, significant housing investment.

Here are the nine metro areas that have broken into the exclusive $1 trillion housing wealth club:

• New York, NY: $4.6 trillion
• Los Angeles, CA: $3.9 trillion
• San Francisco, CA: $1.9 trillion
• Boston, MA: $1.3 trillion
• Washington, D.C.: $1.3 trillion
• Miami, FL: $1.2 trillion
• Chicago, IL: $1.2 trillion
• Seattle, WA: $1.1 trillion
• San Diego, CA: $1 trillion

Together, these nine metro areas represent almost one-third (31.9%) of all U.S. housing wealth. That’s a staggering concentration of value in relatively few places.

Let's dive a little deeper into each of these titans of real estate, understanding their recent performance and what makes them such valuable markets.

New York, NY: The Unstoppable Giant

• Total Market Value: $4,624 billion (or $4.6 trillion)
• Growth (July 2024–June 2025): $260 billion

New York isn't just in the club; it leads the club by a very wide margin. With a market value exceeding $4.6 trillion, it's roughly 20% wealthier in terms of housing than the second-place city, Los Angeles. More impressively, while many other areas saw declines, New York gained an astounding $260 billion in housing value in the last year alone. This surge highlights its enduring appeal as a global financial and cultural center. Despite high costs, demand remains incredibly strong, perhaps bolstered by a return to office trends or simply its unmatched economic gravitational pull.

Los Angeles, CA: The West Coast Behemoth

• Total Market Value: $3,864 billion (or $3.9 trillion)
• Growth (July 2024–June 2025): -$15 billion

Los Angeles stands as the second-largest housing market in the U.S. Its vast metro area and diverse economy, spanning entertainment, technology, and trade, contribute to its immense real estate value. However, unlike New York, Los Angeles experienced a slight dip of $15 billion in the past year. This isn't a massive drop, but it does signal a cooling off after years of significant gains, likely due to affordability challenges and high interest rates affecting buyer demand in an already expensive market.

San Francisco, CA: Tech Capital's Housing Power

• Total Market Value: $1,850 billion (or $1.9 trillion)
• Growth (July 2024–June 2025): -$52 billion

San Francisco, the heart of the tech world, has long been synonymous with sky-high home prices. Its nearly $1.9 trillion housing market reflects years of explosive growth driven by innovation and high-paying jobs. Yet, it recorded a notable decline of $52 billion in the last year. This could be due to a combination of factors, including the impact of remote work on office demand, some tech industry layoffs, and its already exorbitant cost of living pushing some residents to more affordable areas.

Boston, MA: Historic Charm, Modern Wealth

• Total Market Value: $1,322 billion (or $1.3 trillion)
• Growth (July 2024–June 2025): -$3 billion

Boston, a hub for education, healthcare, and biotech, holds a housing market valued at over $1.3 trillion. Its rich history and strong job market have always made it a desirable place to live. While it saw a minimal decline of $3 billion in the past year, it’s relatively stable compared to some West Coast counterparts. Boston's market appears to be benefiting from the general shift towards the Northeast, even if still facing its own affordability hurdles.

Washington, D.C.: The Nation's Capital

• Total Market Value: $1,296 billion (or $1.3 trillion)
• Growth (July 2024–June 2025): $24 billion$

Our nation's capital, with its stable government-related jobs and a growing tech sector, boasts a housing market just shy of $1.3 trillion. Unlike many of the other trillion-dollar cities, D.C. actually saw a respectable gain of $24 billion over the last year. This growth points to continued demand and a relatively resilient economy that isn't as prone to the boom-and-bust cycles seen in some more speculative markets.

Miami, FL: Sunshine and Shifting Sands

• Total Market Value: $1,233 billion (or $1.2 trillion)
• Growth (July 2024–June 2025): -$25 billion

Miami experienced a massive boom during the pandemic, attracting new residents and businesses. Its housing market soared to over $1.2 trillion. However, the latest data shows a decline of $25 billion. This aligns with the broader trend of Florida's market cooling, possibly due to a combination of factors including rising insurance costs, increased cost of living, and an equilibrium being reached after its rapid expansion.

Chicago, IL: The Midwestern Powerhouse

• Total Market Value: $1,219 billion (or $1.2 trillion)
• Growth (July 2024–June 2025): $62 billion

Often overlooked in the housing market narrative, Chicago surprises many by not only being a $1.2 trillion market but also by experiencing a healthy gain of $62 billion in the last year. This strong performance, along with other Midwestern and Northeastern cities, suggests a renewed interest in more established and perhaps comparatively more affordable major metropolitan areas, especially as remote work flexibility plays a role.

Seattle, WA: Another Tech Hub's Test

• Total Market Value: $1,113 billion (or $1.1 trillion)
• Growth (July 2024–June 2025): $13 billion

Seattle, home to tech giants like Amazon and Microsoft, commands a housing market exceeding $1.1 trillion. While it saw a modest gain of $13 billion over the past year, it's a far cry from the massive increases it experienced previously. Like its West Coast neighbors, Seattle faces affordability challenges and a reassessment of housing needs in a post-pandemic world.

San Diego, CA: The Southern California Jewel

• Total Market Value: $1,031 billion (or $1 trillion)
• Growth (July 2024–June 2025): -$22 billion

Rounding out the list is San Diego, just over the $1 trillion mark. Its beautiful coastal setting, strong military presence, and growing biotech industry have fueled its housing values for years. However, it also saw a decline of $22 billion in the last year, reflecting similar pressures to Los Angeles and San Francisco, including high prices and changing economic tides.

The Role of New Construction: Building Wealth and Affordability

It’s easy to focus on just existing home values, but new construction plays a massive role in shaping the overall housing market and building wealth. Since early 2020, new construction added an astounding $2.5 trillion in housing value to the U.S. total. That’s roughly 12.5% of the entire national gain.

Think about it: every new home built creates new wealth. It provides places for families to live, jobs for construction workers, and stimulates local economies. States like Utah (23%), Texas (22%), Idaho (22%), and Florida (20%) saw a significant chunk of their housing market gains come directly from new construction. These were the states that saw huge demand during the pandemic, and building new homes helped them absorb some of that demand.

The takeaway here for affordability is crucial. States that have been most active in building new homes, especially in the Sun Belt like Texas and Florida, are now seeing some improvements in affordability. It’s a basic supply-and-demand concept: more homes mean more options, which can help ease price increases. If we truly want to tackle the affordability crisis, building more homes across the board is a non-negotiable step.

Why the Shift? My Thoughts on What's Happening

From my perspective, watching these market shifts unfold, a few key things stand out.

First, the pandemic-driven scramble for space and perceived affordability led to an explosion in values in certain Sun Belt and Mountain West regions. People were working remotely, chasing lower taxes, and bigger backyards. Now, that initial boom is settling. The “affordability edge” of places like Florida and Texas has started to erode, not just because prices went up so much, but also due to other increasing costs like home insurance and property taxes.

Second, remote work isn’t a one-way street. While it opened up opportunities for some to move, many companies are now encouraging or even requiring a return to the office. This naturally favors established economic hubs like New York, Chicago, and Washington D.C., which have dense job markets and robust infrastructure. The renewed vigor in these areas makes a lot of sense when you consider this dynamic.

Third, the cost of borrowing money – interest rates – has a huge impact. When rates are high, fewer people can afford to buy, which can slow down price growth, especially in already expensive markets. This likely contributed to the slight declines seen in some of the trillion-dollar cities like Los Angeles and San Francisco, where prices were already at their peak.

Finally, the long-term appeal of stability and diverse economies seems to be shining through. Cities like New York and Chicago, with their deep-rooted industries beyond just tech, can weather economic fluctuations a bit better. Their housing markets might not always see the wildest swings up, but they often demonstrate a foundational resilience that pays off over time, making them attractive for long-term real estate investment.

What This Means for Homeowners and Buyers

If you're a homeowner in one of these trillion-dollar markets, especially one that saw a recent gain like New York or Chicago, you've likely seen your equity continue to grow. This is fantastic for your personal wealth. However, it also means that property taxes might be increasing, and the cost of living continues to be a factor.

For aspiring buyers, especially first-time buyers, these high-value markets remain incredibly challenging. Even with small dips in some areas, the entry barrier is substantial. This is where the emphasis on new construction becomes so vital. The more new homes built, the more pressure that puts on prices, which could eventually lead to more attainable housing options.

It's also important to remember that national trends don't tell the whole story. As we’ve seen, a state like Florida can lose significant value overall, but specific cities within it might still be strong, and vice-versa. Always look at the local data, not just the big picture.

Looking Ahead: The Future of Housing Wealth

The fact that nine metro areas hold such immense housing wealth is a testament to their economic pulling power. However, the recent data suggests a shift away from their total dominance in terms of growth. Excluding New York's incredible surge, the other eight $1 trillion markets combined lost $18 billion in housing value in the past year. This strongly suggests that growth is coming from other, often smaller, markets, where affordability might be relatively better, and remote work continues to play a role in redistribution.

This diffusion of housing wealth could be a positive sign in the long run. If more areas become attractive places to live and work, it could help alleviate some of the pressure on the most expensive cities and contribute to a more balanced national housing market. However, the underlying issue of housing supply, especially affordable housing, remains a critical challenge that needs consistent focus from policymakers and developers alike.

The American housing market is a dynamic and ever-evolving giant. While the headlines often focus on national averages, the true story is in the nuances of specific markets. These nine trillion-dollar metro areas are not just places where people live; they are monumental generators of wealth, reflecting decades of economic development, population growth, and investment. Keeping an eye on their trends gives us a powerful lens through which to understand the health and direction of the entire U.S. economy.