The July 2025 Compass National Real Estate Insights are in—and they paint a picture of a market in transition. While both single-family home and condo/co-op median sales prices hit new all-time highs in June, there are signs that buyers are regaining some leverage as inventory builds and demand softens.
Let’s unpack the key takeaways from this month’s report:
🏠 Prices Continue to Climb
June 2025 brought fresh highs for both house and condo/co-op median sale prices nationwide. This marks the latest milestone in a long-term upward trend, buoyed by limited supply, inflation-adjusted pricing, and persistent demand in key markets.
Despite affordability pressures and economic uncertainty earlier in the year, buyers have remained active enough to support continued price growth—though that momentum may be tested in the months ahead.
Photos Courtesy of Compass
📉 Inventory Rises… but Still Below Pre-Pandemic Norms
One of the most notable developments: Inventory is up—and not just slightly.
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New listings were up 6% year-over-year in June, making it the busiest June since mortgage rates began climbing in early 2022.
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The daily number of active listings (a snapshot of inventory at any given time, not just over the course of the month) hit its highest level since 2019.
This is partially due to a slowing sales pace (i.e. homes staying on the market longer), but also signals that the “mortgage lock-in effect”—where homeowners hesitate to sell due to their ultra-low pandemic-era rates—is beginning to loosen.
🛍️ Market Tilts Toward Buyers
The rise in inventory hasn’t been matched by a proportional increase in buyer activity.
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The number of homes pending sale (those under contract) dipped slightly from May, but was up 4% year-over-year.
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Months Supply of Inventory (MSI)—a key measure of market balance—hit a six-year high in June. This shift favors buyers, especially in the condo/co-op segment:
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Houses: MSI = 4.5 months
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Condos/Co-ops: MSI = 6.5 months
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More homes for sale, coupled with stable or slightly softening demand, gives buyers more choice—and more negotiating power.
Photos Courtesy of Compass
📉 Price Reductions Are on the Rise
As the market shifts, sellers are adjusting expectations:
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The number and percentage of listings with price reductions increased again in June.
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This reflects a classic market dynamic: When supply outpaces demand, sellers begin to compete for buyers, often by reducing their asking price.
Still, well-priced, well-prepared homes are finding buyers quickly—and often receive multiple offers. Success continues to hinge on strategy, presentation, and marketing.
Photos Courtesy of Compass
⏳ Pace of Sales Slows—but Not Alarmingly
Homes are taking longer to sell than during the frenzy of 2021–2022, but by historical standards, the pace is still within a normal range.
However, expectations on both sides of the table are still adjusting. Sellers remember the ultra-fast market of a few years ago; buyers are growing more cautious and discerning. This mismatch in mindset can sometimes create friction—but also opportunity for savvy participants.
Photos Courtesy of Compass
🌍 International Buyer Activity Rebounds (For Now)
The National Association of Realtors reported a notable uptick in foreign-national home purchases for the 12 months ending in March 2025. International buyers have long played a key role in markets like New York, Miami, Los Angeles, and San Francisco.
However, recent tariff and immigration policy shifts—including controversial rhetoric around U.S.-Canada relations—could significantly alter this trend. Early anecdotes suggest foreign interest may already be cooling in response.
Photos Courtesy of Compass
Looking Ahead
The June data shows signs of a market rebalancing:
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Prices are still strong.
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Inventory is growing.
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Buyer activity is steady—but selective.
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Sellers are responding to conditions by adjusting price and strategy.
As we enter the second half of 2025, all eyes will be on interest rates, employment data, and international policy. But for now, opportunity exists on both sides—especially for buyers ready to move and sellers willing to price wisely.
If you're thinking about buying or selling, or just want to make sense of what this means for your local market, let's talk.
Photo Courtesy of Tina Ginter Photo
Stay tuned for more local market breakdowns from The Blackshaw Messel Group. Follow us on Instagram @theblackshawmesselgroup for up-to-date insights, community events, and behind-the-scenes real estate tips.
