A longstanding supply deficit in the U.S. housing market continued reversing course in July, per the latest market report from Homes.com. Compared to July 2024, the number of listings increased annually by 25.9%, or about 296,000, bringing the total listings in the U.S. to 1.4 million.
Of those 1.4 million listings tracked by Homes.com, 1.1 million were single-family homes, a sector which saw a 25% year-over-year increase. On a smaller marketwide basis, 94% of the markets tracked by Homes.com (or 887 of the 941) saw their annual listing inventory rise.
Homes.com described these results, the seventh consecutive monthly increase in annual inventory, as bringing inventory up to pre-pandemic levels.
These inventory levels, combined with home price appreciation moderating in July, were described as signs of shifting conditions to a more buyer friendly nationwide market. The shifts are not tilting favorability toward one side of the consumer aisle, however.
Erika Ludvigsen, Homes.com’s national director of residential analytics, summarized current dynamics as a “mismatch” between increasing supply and lowered buyer demand.
“Market dynamics are moving toward a buyer’s market, with homes staying on the market longer and potential homebuyers having more choices and stronger negotiating power, (but) buyer demand has cooled due to high interest rates and elevated prices,” said Ludvigsen in the inventory report.
It should be noted that Homes.com also found earlier this month that the median home price was up slightly, 2.1%, in July at $393,000 across all housing types. Ludvigsen noted in the pricing report that price appreciation will likely remain positive overall through the end of the year. However, growing inventory and elevated (though currently declining) mortgage rates could keep price increases in check.
Which regions are seeing rising inventory, and which are seeing higher prices
The West and the South were home to the markets with the highest inventory growth. Nine of the top 10 metro areas with the highest inventory growth were located in those regions.
The metro areas with the greatest annual growth in listings in July were Raleigh, North Carolina (54.5%), followed by Las Vegas, Nevada (43.1%); Miami, Florida (40.1%); Atlanta, Georgia (36.7%); and Louisville, Kentucky (36.5%).
“Increased migration and rapid homebuilding during and post-pandemic in those metros have added significant new housing stock to the market,” said Ludvigsen in the inventory report.
Conversely, the metro areas with the highest price increases during July were largely found in the Midwest. Cleveland, Ohio, posted the greatest increase at 14.1%. Next were Indianapolis, Indiana (9.8%); Philadelphia, Pennsylvania (7.2%); St. Louis, Missouri (7.1%); and Cincinnati, Ohio (6.4%).
The report largely framed this price growth as a positive sign of growth in the Midwest and increased interest from homebuyers in these metro areas.
“Demand (in Cleveland) still remains pretty steady, and there’s still not a lot of options for people,” said Cleveland area Engel & Völkers broker Kristin Baum, interviewed by Homes.com for the pricing report.
“The Midwest did not experience the sharp home price increases as the South post-COVID and is now faring better with more stable pricing and market fundamentals,” Ludvigsen said in the pricing report. Indeed, three of Texas’ large metro areas posted annual price declines: San Antonio (5%, the largest overall annual drop), Austin (4.2%) and Houston (2.9%).
Assessing regional differences in market prospects, Ludvigsen concurred in the pricing report that the West and South will likely offer the most opportunities for buyers due to rising inventory and declining price trajectories.
“Market conditions may be more challenging for buyers in the Northeast and Midwest as supply remains tighter and price levels are appreciating at higher rates than in other parts of the country,” Ludvigsen predicted.
For the full Homes.com inventory report, click here.
