If you’ve ever thought the U.S. housing market was frozen in place—think again. In July 2025, the tide began shifting, subtle yet meaningful. Here’s why the market feels built different these days, thanks to modest gains in sales, easing price pressures, and rising inventory.
What’s Really Going On
- Sales Are Pushing Up – Existing home sales rose 2% in July, hitting a 4.01 million annualized rate—above forecasts.
- Prices Are Cooling Off—A Bit – The national median price nudged up just 0.2% year-over-year, landing at $422,400, the smallest annual increase since June 2023.
- Inventory Is Climbing – 1.55 million homes for sale in July, up 15.7% YoY, a 4.6-month supply, highest since early pandemic days.
- Affordability Shows a Glimmer of Relief – Slower price growth, rising wages, and growing supply are making buying slightly easier.
- Regional Nuances & Other Shifts – About half of the U.S. may now be experiencing outright declines in home prices. All-cash deals = 31%, investors = 20%, first-time buyers = 28%.
Built Different Takeaways
- Inflection Point, Not Overhaul – Cooling prices and rising inventory signal easing, not a total reset.
- More Supply = More Leverage – Buyers are gaining negotiating power as homes stay listed longer and price cuts grow.
- Affordability’s Soft Turn – Wage growth outpaces price growth, giving buyers some breathing room.
- Not One-Size-Fits-All – Some regions still rise while others, especially in the South and West, are dipping.
TL;DR: July’s Housing Market, Built Different
| Metric | July 2025 Insight |
|---|---|
| Home Sales | +2% MoM to 4.01M annual rate — above forecasts |
| Median Home Price | $422,400 (+0.2% YoY) — smallest growth since June ’23 |
| Inventory Supply | 1.55M homes — 4.6-month supply, highest since ’20 |
| Affordability | Slight improvement; wages outpacing prices |
| Buyer Types | Cash buyers high (31%), investors up, first-timers down |
| Regional Trends | Half the country seeing price drops, mostly West/South |
