Core Insights - The total listing value of homes for sale in the U.S. reached $698 billion as of April 2025, marking a 20.3% increase year-over-year and the highest level recorded since 2012, indicating an unprecedented supply-demand imbalance in the U.S. real estate market [1][3] - The record total value is attributed not only to rising home prices but also to an increase in inventory and a decline in demand, with the number of homes listed for sale rising by 16.7% year-over-year [1][2] Supply Side Dynamics - The weakening of the mortgage rate lock effect and increasing economic uncertainty have led more homeowners to list their properties for sale, aiming to "cash out" before market adjustments [1] - The number of new listings increased by 8.6% year-over-year, reaching the highest level in three years, indicating more sellers in the market [1] Buyer Behavior - Buyer willingness to purchase homes has significantly decreased due to high home prices and historically high mortgage rates, leading many potential buyers to temporarily exit the market [2] - The average time homes spent on the market before entering the sales process increased to 40 days, up by 5 days from the previous year, reflecting a slowdown in transaction pace [2] Inventory and Market Pressure - As of April, 44% of listed properties had been on the market for over 60 days without selling, with this "stale inventory" valued at $331 billion, nearly half of the total listing value, indicating declining market activity [2] - The median home price increased by 1.4% year-over-year, but the surge in total listing value is primarily driven by the significant increase in the number of homes for sale [3] Market Outlook - The ongoing increase in inventory and widespread presence of unsold homes are expected to exert downward pressure on home prices throughout the year, with a forecasted decline of approximately 1% by the end of 2025 [3] - Some sellers are beginning to accept the market realities and are willing to negotiate on prices, as buyers are now more cautious and only willing to purchase under compelling circumstances [4]