Housing Inventory Is Surging—Does That Mean It’s Finally a Buyer’s Market?

A Buyer’s Market Making a Comeback

Buyers are getting access to more choices in the housing market. In June, home inventory increased 28.9% year-over-year, an continuation of an upward trend that has been building for more than a year, according to Realtor.com data.

Dive into current housing market trends to understand the outlook for prospective buyers.

What the Numbers Say: Inventory Hits Post-Pandemic Highs

During the COVID pandemic, mortgage rates hit historic lows and buyers snapped up houses. But as time went on, prices soared and inventory shrank. Now, the tide is starting to shift again.

Over the past 20 months, home inventory has grown. June marks the second month in a row with more than 1 million active listings, according to a Realtor.com report.

While inventory in June was at a post-pandemic high, it has yet to reach pre-pandemic levels. It is still down 12.9% compared to pre-pandemic levels.

The numbers start to look different when you look at the regional housing markets. For example, inventory is up considerably more in the South (29.4%) and West (38.3%) markets. Inventory growth is more modest in the Midwest (21.3%) and Northeast (17.6%).

Homes Are Staying on the Market — And Prices Are Stable

In the current market, buyers are taking more time to shop and make a decision. The median time on the market for a home is 53 days, up five days from last year.

Home prices are also relatively stable. According to Realtor.com data, the national median price increased just 0.2% year-over-year to $440,950 as of June 2025. Prices are actually slightly down in the West and Midwest. Buyers may welcome this stability after years of significantly rising prices.

Buyer Sentiment: Wary but Warming

Economic uncertainty continues, and it is reflected in buyer sentiment. Fannie Mae’s Home Purchase Sentiment Index tracks consumer attitudes toward buying. In June, the index dropped nearly four points to 69.8.

Consumers noted their concerns around potential job loss and the uncertainty of market factors like the outlook on mortgage rates and home prices.

Despite consumer hesitation, there is some indication of growing buyer interest. The index indicates that 28% of respondents think it is a good time to buy; sentiment hasn’t been that high in more than two years.

Should You Buy Now? Four Considerations for Prospective Buyers

The right time to buy depends on market conditions and where you stand.

Choice and Leverage

A higher amount of available inventory gives buyers more options to consider. When you do find a home you want to make an offer on, more market choice means more negotiating power with sellers.

Price Discipline

Think about where you plan to buy. Are there areas you are interested in that have high price-cut frequency? Can you consider homes in markets with prices lower than the national average?

Timing and Rates

Mortgage rates are a big deciding factor for homebuyers. Rates are far from record lows, buy they are on a slight downward trend at the moment. As of July 21, the average 30-year fixed mortgage rate was 6.90%.

Personal Readiness

Your personal readiness is the ultimate deciding factor for buying a home. Do you have money saved up for a down payment? Do you have stable employment and a solid credit score that will help you secure a mortgage?

The Bottom Line

The housing market is shifting toward buyers in some regards. More inventory and a slight drop in mortgage rates could signal it is the right time for some buyers to look for a home. While overall market dynamics are always important to consider, buyers also need to factor in regional market conditions and their personal readiness to buy.