Realtor.com
New economic data this week shows that the balance of power in the housing market keeps shifting in favor of homebuyers.
Fresh labor market data and a jump in housing inventory offer new hope to prospective buyers, even as high mortgage rates continue to weigh on affordability.
A confluence of factors—including more homes for sale, rising price cuts, and slower-moving inventory—is giving buyers more leverage than they’ve had in years, according to the June 2025 housing report from Realtor.com®.
Jobs boost confidence, but rates tick up
The U.S. labor market outperformed expectations in June, adding jobs and nudging the unemployment rate lower. While wage growth cooled slightly, it still outpaced inflation, giving workers a bit more spending power.
However, the stronger-than-expected jobs report dashed hopes for an imminent interest rate cut by the Federal Reserve. That sent mortgage rates climbing for the first time in over a month, rising to 6.72% for a 30-year fixed loan. While still below peak levels from last year, the bump might curb some buyer enthusiasm.
Even before the latest rate increase, homebuying sentiment was already mixed. In June, more consumers said it was a good time to buy a home—reaching a two-year high—yet overall purchase sentiment dipped, reflecting ongoing economic uncertainty.
Inventory climbs, sellers pull back
The number of homes for sale has now increased for 20 consecutive months, reaching a post-pandemic high, according to Realtor.com data. That’s helping to extend time on the market and push more sellers to cut prices—both favorable trends for buyers.
Still, some sellers are choosing a different path. Instead of slashing prices, a growing number are simply pulling their listings. Delistings surged 47% year over year as of May, a sign that not all hofmeowners are willing to meet the market where it is. How this trend evolves could determine whether the market tips fully into buyer territory—and how quickly it happens.
Price cuts rise, but list prices edge higher
Despite more price reductions, the national median list price continued to inch upward in weekly data, a reflection of mixed seller behavior and strong demand in certain areas.
Regionally, the shift is uneven. The Northeast and Midwest remain the most competitive regions, with many markets still seeing price gains. A new Realtor.com report on the hottest housing markets confirms this trend, with top-performing cities concentrated in these regions.
What it means for buyers
While the housing market hasn’t fully transitioned into buyer’s market territory, the landscape is certainly more favorable than it was a year ago. Inventory is up, sellers are more flexible, and many buyers are regaining the ability to negotiate.
That said, affordability remains a concern. Realtor.com found that in May, the typical household could afford a median-priced home in only three U.S. markets: Pittsburgh, Detroit, and St. Louis.
For those still in the market, the coming months could offer more options—and more negotiating power—than at any point in the past few years.
For full reports and up-to-date market insights, visit Realtor.com/research. You can also follow @realtordotcomecon on Instagram and Realtor.com on X (formerly Twitter) for real-time housing data and infographics.