#United States #Austin #Realtor.com #Home Listings #U.S. Housing Market

U.S. Housing Market Sees One Million Homes Listed

The U.S. housing market has reached a significant milestone as the number of available homes for sale surpasses one million for the first time since winter of 2019, according to the May Monthly Housing Trends Report from Realtor.com. However, this recovery is not uniform across the nation. The latest data reveals that while metros in the South and West have returned to pre-pandemic inventory levels, other regions, particularly the Northeast and Midwest, are struggling to catch up.

A Divided Recovery

Chief Economist Danielle Hale of Realtor.com commented on the current state of the housing market, stating, "The number of homes for sale is growing, and even hit a key milestone in May, with more than a million active listings. But not every housing market is equally well-supplied." The report indicates that new construction trends and market dynamics during the pandemic significantly contribute to the varying degrees of recovery across different areas.

Cities such as Denver (a remarkable 100% increase in active listings compared to pre-pandemic levels), Austin (69%), and Seattle (60.9%) have all seen a robust return to inventory levels. These growth patterns can be attributed to an aggressive building strategy adopted in many areas during the pandemic. In contrast, metros like Hartford, Conn. (-77.7% compared to pre-pandemic), Chicago (-59.3%), and Virginia Beach, Va. (-56.7%) have experienced more significant challenges in inventory replenishment.

Shifting Buyer Dynamics

For potential buyers, increased inventory means more choices and a bit of leverage that has been absent in recent years. Gary Ashton, founder of The Ashton Real Estate Group of RE/MAX Advantage in Nashville, states, "More homes on the market means buyers finally have options and leverage they haven't had in years." However, buyers' strategies may differ significantly based on geographic location. In regions like Nashville, where sales prices have increased by 3%, home supply has risen, creating a broader landscape for buyers.

Yet, even with the increase in listings and some adjustments in pricing strategies, affordability remains a critical hurdle. Homes in May took a median of 51 days to sell—six days longer than the previous year—indicating that despite a rise in active listings, the buying season isn't as hot as anticipated. Additionally, the share of listings with price reductions reached 19.1%, marking the highest percentage for any May since 2016, suggesting that sellers in various metros are adjusting their price expectations.

Construction: A Key Differentiator

The report highlights a clear connection between the level of new construction during the pandemic and current inventory conditions. Areas that embraced aggressive building, such as Austin and Nashville, have managed to recapture pre-2020 inventory levels effectively. Conversely, cities with less construction activity, including New York, Boston, and Buffalo, continue to face significant supply challenges.

This uneven recovery pattern underscores earlier findings from a Realtor.com Housing Supply Gap report, which points to a nationwide deficit of nearly 4 million homes. As the market evolves, areas with restrictive zoning laws, limiting permit issuance, and lacking construction incentives could fall further behind without substantial remedial measures.

Market Metrics Revealed

According to the National Housing Metrics, notable numbers include:

• - Median Listing Price: $440,000 (up 2.0% from April 2025, with a year-over-year increase of 0.1% and a staggering 37.5% since May 2019)
• - Active Listings: 1,036,101 (up by 8.0% from the previous month, with a 31.5% rise year-over-year, though down 12.3% compared to May 2019)
• - New Listings: 465,096 (down 1.4% month-over-month but up 7.2% from the previous year)
• - Median Days on Market: 51 (up by one day month-over-month and up six days compared to the previous year)

Conclusion

While the U.S. housing market's rebound is noteworthy, it is fraught with disparities based on region, construction trends, and affordability issues. As we move further into 2025, eyes will remain peeled for how these dynamics might shape future market opportunities and challenges across the country.