Q 2– National and Local Overview
Housing Market Update: Cautious Optimism Amid Expanding Supply
As we close out the second quarter of 2025, the local housing market continues to exhibit resilience with signs of cautious growth—despite persistent affordability challenges and a steadily normalizing pace. Strong year-overyear gains in inventory and contract activity point to a rebalancing marketplace, even as prices and buyer behavior continue to show signs of restraint.
Inventory rose sharply throughout the quarter, climbing over 40% year-over-year in both May and June. This marks the highest local supply levels since mid-2020 and pushed months supply to 3.5, up from 2.4 a year prior. For context, a balanced market typically sits in the range of four to six months.
New listings regained ground across Q2, with increases of +19.2% in April, +12.6% in May, and +15.9% in June, suggesting that sellers are beginning to re-engage as rates stabilize and pricing expectations reset. Buyer activity followed suit. Pending sales rose +12.2% in May and +15.5% in June, and closed sales increased as well—+1.7% in May and +8.1% in June. Year-to-date, closed sales are now up +2.6% over 2024, a sign of improved buyer confidence and mobility.
Price trends remained relatively stable, with the median sales price hovering near $400,000 throughout the quarter. Minor month-to-month declines—down 1.4% in May and 0.4% in June—kept the year-to-date median essentially flat at $399,900. This reflects a market that is beginning to price in the impact of higher supply and lingering rate sensitivity.
Homes are taking longer to sell. The average days on market rose to 21 days in both May and June, up over 30% year-over-year. This suggests a continued shift in urgency, with more buyers taking time to evaluate options and negotiate. Sellers are also adjusting. In June, homes received an average of 97.2% of original list price, down from 98.5% the prior year—the lowest percentage since early 2020. Pricing accuracy is once again a competitive differentiator.
National Context: Cooling Momentum with Rising Inventory
Across the country, existing-home sales rose 0.8% month-over-month in June, yet remain down 0.7% year-overyear, according to NAR. Inventory reached 1.54 million units nationally, the highest in over two years, and translates to a 4.6-month supply at the current sales pace. While more supply typically signals softening, prices
have held up nationally, with the median existing-home price rising 1.3% year-over-year to $422,800. Still, the pace of appreciation has clearly decelerated from the pandemic highs. In the new construction segment, new home sales dropped 13.7% in June, and although the median new home price rose slightly, absorption slowed and incentives grew more common. This mirrors the shifts we’re now seeing locally in the resale market—more product, more time, and a greater emphasis on pricing strategy.
Conclusion
The second quarter of 2025 underscores a housing market that is gradually finding equilibrium. Sellers are returning, inventory is building, and buyers—while still price conscious—are active. The days of runaway bidding and lightning-fast sales appear behind us for now. Instead, we are seeing a return to fundamentals: strategic pricing, realistic expectations, and room for negotiation. As we move into the second half of the year, the market’s ability to maintain this balance—amid national economic shifts and evolving rate environments—will define the trajectory ahead.