Housing Market at a Crossroads: Inventory Climbs but Some Sellers Hold Out

Core Insights - The real estate market is experiencing a stand-off between buyers and sellers, with active inventory increasing while delistings are also on the rise, indicating sellers' impatience with the market conditions [1][2][7] Market Dynamics - Active inventory rose 28.1% year-over-year, reaching a post-pandemic high, while delistings increased by 47% year-over-year in May, suggesting a growing trend of sellers withdrawing listings [1][7] - The ratio of delistings to new listings reached 13% in spring 2025, indicating that for every 100 new listings, approximately 13 homes were pulled from the market [9] Pricing Trends - The national median listing price remained stable at $440,950, reflecting a slight increase of 0.1% from the previous year, despite a significant number of price reductions [6][5] - In June, 20.7% of listings experienced price reductions, marking the highest share for any June since at least 2016 [5] Regional Insights - Inventory growth was observed across all four major U.S. regions, with the West seeing a 38% increase and the South nearly 30% [4] - Las Vegas and Washington, D.C. led the top 50 metros in active inventory gains, with increases of 77.6% and 63.6% year-over-year, respectively [4] Seller Behavior - Many sellers are holding out for peak prices, leading to a cautious approach in adjusting expectations, as they prefer to withdraw listings rather than lower prices [2][11] - The market has shifted from urgency to a more balanced dynamic, with both buyers and sellers recalibrating their strategies [11]