US Home Inventory Reaches Peak, Shifting Power to Buyers

U.S. single-family home inventory reached its peak level since the pre-pandemic era in June, with the national active inventory averaging 823,902 units and exceeding 840,000 by the end of the month. This represents a significant increase from approximately 628,000 units in June 2024 and more than double the pandemic low of 345,000 units in June 2021. New listings in June totaled 310,221, surpassing the 299,502 newly pending contracts, indicating that supply is accumulating faster than buyer offers are being made.

The national median list price remained stable at around $450,000 in June. However, the median asking price for newly listed properties decreased from $440,000 at the beginning of the month to $430,000 by its close. Holly Mabery, Chief Brokerage Officer at eXp Realty, suggested to HousingWire that this trend indicates sellers are adjusting their price expectations as competition for buyers intensifies. She noted that some sellers still expect 2022 market conditions and are testing higher prices, while buyers are increasingly focused on the total cost of homeownership, including potential repairs, utilities, and rising insurance rates.

Data from the week ending June 26 revealed that nearly 39% of all active listings nationwide had experienced a price reduction, up from 38% at the start of June. This figure exceeds the typical benchmark of 30-to-35%. Furthermore, approximately 9% of properties were relisted after being previously removed from the market, suggesting a weakening demand environment where transactions are failing to close. While inventory is growing nationally, a small number of markets in the Northeast and Midwest continue to experience persistent competition.