U.S. Home Listings Drop to Lowest Point in Nearly Two Years Amid Shifting Market Trends
The U.S. housing market saw a notable cooling in June as newly listed homes dropped to their lowest seasonally adjusted level since October 2023, according to a new report released by Redfin. New listings fell 3.2% from May and 3.4% compared to the same period last year marking the sharpest month-over-month decline since early 2023.
While inventory had been ticking upward in the early months of the year, that momentum has now reversed. Overall active listings decreased slightly by 0.3% in June the first such decline in nearly a year even though they remain more than 13% higher than a year ago, approaching a five-year high.
“The dynamic has changed. Buyers are gaining leverage in many markets because inventory is up year-over-year, and demand has weakened,” explained Asad Khan, Redfin’s Senior Economist. “But that same soft demand is deterring potential sellers, especially those who fear having to accept a lower price than expected or take a loss.”
Why Sellers Are Holding Back
The market slowdown has created an uneasy landscape for current homeowners who need to relocate but are facing the prospect of selling into a less favorable market. Many who purchased homes during the low-interest rate boom of the pandemic era are now opting to lease their properties rather than sell at a loss.
“In Dallas, I’m seeing this play out firsthand,” said Connie Durnal, a Redfin Premier agent. “Several clients who bought in early 2022 want to move but can’t justify the financial hit they’d take. For many, it makes more sense to rent out their home and wait.”
Regional Hotspots and Cold Zones
While national trends indicate cooling activity, some metro areas are bucking the trend. Pending sales surged in Virginia Beach (+14.4%), Dallas (+8.2%), and Warren, Michigan (+8.1%), highlighting the relative strength of the more affordable Rust Belt cities. In fact, six of the 10 markets with the fastest growth in pending sales are located in that region.
Prices also climbed the most in Rust Belt cities, including Newark (+8.9%), Detroit (+8.6%), and Cleveland (+8.1%). Conversely, more volatile markets in California and Florida are seeing declines. Home prices dropped most in Oakland (-4.6%), West Palm Beach (-4.1%), and Jacksonville (-3.9%) places that have recently faced a combination of overbuilding, insurance cost spikes, and environmental risks.
Contract Cancellations Hit a Multi-Year High
June also saw a record number of home-purchase deals fall through. Roughly 57,000 agreements were canceled, representing 14.9% of all contracts signed that month the highest cancellation rate for June since 2017. Redfin attributes this to a mix of sticker shock, rising mortgage rates, and economic uncertainty.
Mortgage rates hovered near 7% throughout June, discouraging many would-be buyers. Though that figure remains well below historical highs, it’s still more than double the ultra-low rates seen during the pandemic’s housing boom. At the same time, the median home price reached an all-time high of $447,035, adding further strain to affordability.
Home Price Growth Slows—but Inventory Still Lags
The silver lining for buyers? Home prices are no longer climbing at breakneck speed. June saw just a 1% year-over-year increase, nearly matching May’s modest 0.7% rise marking the slowest annual growth in over two years.
Buyers also have more room to negotiate. Fewer homes are selling above their list prices: only 30.9% of June sales closed above asking, the lowest for any June in five years. The average sale-to-list-price ratio stood at 99.3%, a slight dip from a year ago.
Market Timing and Seller Strategies
The typical home that went under contract in June had spent 39 days on the market, the slowest turnover for a June since 2020. That’s up from 33 days in June 2024. Cities in Florida, especially Miami, saw the most significant increase in time on the market, reflecting mounting supply and fading buyer urgency.
Still, sellers in select markets continued to see bidding wars. In Newark, NJ, nearly 70% of homes sold above list price, followed by Nassau County (58.2%) and San Francisco (58.1%).
Real estate experts caution that sellers must price their homes competitively and ensure they’re move-in ready to attract serious buyers in today’s environment. Conversely, buyers are advised to consider stretching their budgets slightly, as sellers may be willing to negotiate or include concessions to close the deal.
June 2025 National Housing Snapshot
| Metric | June 2025 | MoM Change | YoY Change |
|---|---|---|---|
| Median Sale Price | $447,035 | +1.4% | +1.0% |
| Existing-Home Sales (SAAR) | 4,159,943 | -0.4% | +0.4% |
| Pending Sales (Seasonally Adjusted) | 469,806 | -2.2% | -2.4% |
| Homes Sold | 411,841 | -1.4% | -1.3% |
| New Listings | 517,714 | -3.2% | -3.4% |
| Active Listings | 1,929,956 | -0.3% | +13.3% |
| Median Days on Market | 39 | +1 | +7 |
| Share Sold Above List Price | 30.9% | -0.3 pts | -4.2 pts |
| Sale-to-List Price Ratio | 99.3% | -0.1 pts | -0.6 pts |
| Canceled Pending Sales | 14.9% | +0.8 pts | +1.0 pts |
| Avg. 30-Year Fixed Mortgage Rate | 6.82% | – | -0.1 pts |
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