Sluggish homebuying demand and a pileup of inventory are deterring prospective home sellers, some of whom are opting to rent their homes out instead of sell

SEATTLE--(BUSINESS WIRE)--Jul. 21, 2025-- New listings of U.S. homes for sale fell 3.2% in June to the lowest seasonally-adjusted level since October 2023, according to a new report from Redfin, the real estate brokerage powered by Rocket. That’s the biggest month-over-month decline since February 2023. New listings fell 3.4% year over year, the first annual decline since October 2023.

Active listings—the total number of homes for sale—fell 0.3% month over month in June. That’s the first decline since July 2023 on a seasonally-adjusted basis. Still, active listings were up 13.3% from a year earlier, sitting near the highest level in five years.

“The balance of power in the housing market has shifted toward buyers because listings have piled up and demand has slowed down,” said Redfin Senior Economist Asad Khan. “Prospective sellers are feeling discouraged by this new reality. Some are reacting by staying put or renting their homes out instead of selling—especially if they’re at risk of taking a haircut.”

The slowdown in listings marks a reversal from the start of the year, when the story of the U.S. housing market was rising supply; listings piled up because the mortgage rate lock-in effect eased and demand simultaneously slowed due to high housing costs and economic uncertainty. Sellers were forced to lower their prices after watching their homes linger on the market for weeks, and in some cases, months. Now, some are opting to forgo selling.

“For many folks who bought at the peak of the pandemic market, selling might not be the best option right now,” said Connie Durnal, a Redfin Premier real estate agent in the Dallas area. “I have several clients who purchased their homes in early 2022 and need to move, but the math is just really, really tight. I’m advising them to lease their homes out if they can’t afford to take a loss. I think I will have a lot of clients coming back to list this time next year.”

Home Sales Dipped in June as Prices Hit a Record High

Pending home sales fell 2.2% month over month in June to the lowest level since November 2023 on a seasonally-adjusted basis, and dropped 2.4% year over year. Existing-home sales came in at a seasonally adjusted annual rate of 4,159,943—little changed from both a month and a year earlier, but the lowest level in nine months.

Roughly 57,000 home-purchase agreements were canceled in June as high housing costs gave buyers cold feet. That’s equal to 14.9% of homes that went under contract last month—the highest June rate in records dating back to 2017.

The median home sale price hit a record high of $447,035 in June, and mortgage rates hovered near 7%—more than twice the record low hit during the pandemic.

One piece of good news for buyers is that prices aren’t rising as quickly as they were in the past; the median sale price climbed 1% year over year in June—roughly on par with the prior month’s 0.7% growth, which was the slowest in roughly two years.

Homes are also less likely to sell for above their asking price than in the past, a sign that buyers have bargaining power. Less than one-third (30.9%) of homes that sold in June went for over their list price, the lowest June share in five years. Redfin predicts home prices will begin falling on a year-over-year basis by the end of 2025.

When demand is slow, it’s critical for sellers to make sure their homes are priced fairly and in good condition, Redfin agents say. They also advise buyers not to rule out homes that are priced beyond their budget, as sellers may be willing to come down on price or offer concessions.

The Typical Home Takes Over a Month to Sell

The typical home that went under contract in June sat on the market for 39 days, up from 33 days a year earlier and the longest span for any June since 2020.

Roughly two in five (38.3%) homes that went under contract did so within two weeks, down from 43.1% a year earlier and the lowest June share since 2017.

June 2025 Housing Market Highlights: United States

Note: Data are subject to revision

June 2025 Metro-Level Highlights: Sales, Prices and Listings Are Rising Quickly in the Rust Belt

Sales

• Pending sales rose most in Virginia Beach, VA(14.4%),Dallas(8.2%) and Warren, MI(8.1%). Six of the 10 metros where pending sales rose fastest are in the Rust Belt, which has attracted homebuyers because it’s relatively affordable.
• Pending sales fell most in Florida : Fort Lauderdale, FL (-11.7%), Las Vegas (-11.3%) and Miami (-11%) saw the biggest declines. Florida is home to four of the 10 metros where pending sales fell fastest.
• Closed home sales rose most in the Midwest, with the largest increases in Cincinnati (11.4%), Milwaukee (11.1%) and Virginia Beach (10.7%). Four of the 10 metros where closed sales rose fastest are in the Midwest.
• Closed home sales fell most in Florida: Fort Lauderdale (-23%), Miami (-16.1%) and West Palm Beach, FL (-12.2%) saw the biggest declines.

Prices

• Prices rose most in Newark, NJ(8.9%),Detroit(8.6%) and Cleveland(8.1%). Six of the 10 metros where prices rose fastest are in the Rust Belt.
• Prices fell most in Oakland, CA (-4.6%), West Palm Beach (-4.1%) and Jacksonville(-3.9%). Of the 12 metros where prices fell, four are in Florida and three are in Texas. Housing markets across Florida and Texas have cooled rapidly amid a surge in homebuilding, rising insurance costs and extreme weather events.

Supply

• New listings rose most in Warren (13%), Boston(9.8%) and Cincinnati (8.9%). Five of the 10 metros where new listings rose fastest are in the Rust Belt.
• New listings fell most in San Francisco(-17.2%), Tampa, FL (-14.1%) and Nassau County, NY(-13.6%). California is home to five of the 10 metros where new listings fell fastest.
• Active listings rose most in Las Vegas(34.5%), Dallas (29%) and Anaheim, CA (29.6%). Seven of the 10 metros where active listings rose fastest are in the West.
• Active listings fell in three metros: Nassau County (-7.2%), San Francisco (-5.7%) and Kansas City, MO (-0.1%).

Speed/Competition

• Florida saw the biggest uptick in days on market: In Miami, the typical home that went under contract did so in 88 days, up 23 days from a year earlier—the biggest increase among the metros Redfin analyzed. Next came Fort Lauderdale (+17 days) and Orlando, FL (+16 days).
• Days on market dropped in three metros: Kansas City, MO (-8 days), Chicago (-1 day) and New York (-1 day).
• Homes were most likely to sell above their list price in Newark (69.6% of homes sold above list), Nassau County(58.2%) and San Francisco (58.1%).
• Homes were least likely to sell above their list price in Florida: West Palm Beach (5.7%), Fort Lauderdale (7.6%) and Miami (7.6%) had the lowest share of homes selling above list.

To view the full report, including charts and full metro-level data, please visit: https://www.redfin.com/news/home-listings-fall-june-2025

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250721444622/en/

Contact Redfin Journalist Services:
Isabelle Novak
press@redfin.com

Source: Redfin