Summary:
U.S. home inventory reached a record $698 billion in April 2025, marking a 20.3% year-over-year increase, according to Redfin. Despite the surge in listings, buyer activity remains sluggish, leading to longer market times for unsold homes. Factors such as high housing costs, economic uncertainty, and rising mortgage rates are contributing to this trend. This imbalance between supply and demand has created a buyer’s market, with sellers increasingly open to price negotiations.
What This Means for You:
- For Buyers: Take advantage of the current buyer’s market to negotiate better deals, as sellers are more willing to lower prices due to high inventory levels.
- For Sellers: Be prepared to price competitively and consider incentives to attract buyers in a market where homes are staying unsold longer.
- For Investors: Monitor market trends closely, as rising inventory and potential price drops could present opportunities for strategic acquisitions.
- Future Outlook: Experts predict a 1% decline in home prices by year-end, which could improve affordability for buyers as incomes continue to rise.
Original Post:
U.S. home inventory hit a record $698 billion in April, a 20.3 percent increase from the previous year. However, sales aren’t keeping pace, a new analysis from Redfin shows. While listings are rising, buyer activity remains muted, leaving many homes sitting unsold far longer than usual.
In April alone, total listings jumped 16.7 percent year over year, the highest level in five years, while new listings rose 8.6 percent, hitting a three-year high, yet buyers haven’t followed. Redfin reports there are now nearly 500,000 more sellers than buyers nationwide.
Homes are lingering on the market and getting stale. The typical home took 40 days to go under contract in April — five days longer than last year. More than 44 percent of listings were on the market for 60 days or more. That stale inventory alone accounts for $331 billion, nearly half the total market value.
“The record-high dollar value of all homes listed for sale is one way to quantify this buyer’s market,” said Chen Zhao, Redfin’s head of economics research. “Not only are there more homes for sale than there have been in five years, but the value of those homes is higher than it has ever been.”
Contributing to this slowdown are record-high monthly housing costs, economic uncertainty, and rising home-sale prices. The median U.S. home-sale price in April was up 1.4 percent from the previous year, but many sellers are now willing to negotiate.
“A huge pop of listings hit the market at the start of spring, and there weren’t enough buyers to go around,” said Matt Purdy, a Redfin Premier agent in Denver. “House hunters are only buying if they absolutely have to, and even serious buyers are backing out of contracts more than they used to. Buyers have a window to get a deal; there’s still a surplus of inventory on the market, with sellers facing reality and willing to negotiate prices down.”
In stark contrast to today’s slower market, inventory in early 2022 bottomed out at $309 billion. Mortgage rates hovered around 3 percent, and homes sold in a median of just 24 days. Now, with rates near 7 percent and affordability stretched thin, the stockpile of unsold homes keeps growing.
Zhao says there may be a silver lining for buyers as incomes continue to increase. “We expect rising inventory, weakened demand, and the prevalence of stale supply to push home prices down 1 percent by the end of this year, which should improve affordability for buyers because incomes are still going up,” she said.
Extra Information:
Redfin’s Full Analysis provides deeper insights into the current housing market trends. For a broader perspective on mortgage rates and affordability, visit Inman’s Mortgage Section.
People Also Ask About:
- Why is U.S. home inventory so high? A combination of increased listings and reduced buyer activity due to high mortgage rates and economic uncertainty has led to a surplus.
- How long are homes staying on the market? The typical home took 40 days to go under contract in April, five days longer than the previous year.
- Are home prices expected to drop? Experts predict a 1% decline in home prices by the end of 2025 due to rising inventory and weakened demand.
- What should buyers do in this market? Buyers should leverage the current buyer’s market to negotiate better deals and take advantage of increased inventory.
- How are sellers responding to the slowdown? Many sellers are lowering prices and offering incentives to attract buyers in a competitive market.
Expert Opinion:
Chen Zhao, Redfin’s Head of Economics Research, emphasizes that the current market dynamics present a unique opportunity for buyers. “With rising inventory and sellers willing to negotiate, buyers have a rare chance to secure favorable terms in a market that has been largely unaffordable in recent years,” she notes.
Key Terms:
- U.S. home inventory trends 2025
- Buyer’s market real estate
- Housing market slowdown 2025
- Mortgage rates and home sales
- Real estate negotiation strategies
- Stale inventory in housing market
- Affordability in U.S. real estate
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