US Housing Market Update:
Summer is here, and the housing market warmed up in lockstep. What made May such an interesting month for homebuyers and sellers? REMAX's most recent National Housing Report indicates that it appears inventory increased in most markets, however some buyers are having a hard time keeping up with costs. The numbers painted a varied but interesting picture, and REMAX is here to break it down for you and help explain what it all means for homebuyers and sellers.
More Movement, More Options
May saw movement in the market and options are becoming more available. Home sales climbed for the fourth straight month, jumping 8.6% from April. From a year-over-year perspective, home sales in May were down 3.5%.
While the number of sales eased slightly from May 2024 figures, there's definitely movement in the air. May marks the 17th consecutive month that saw inventory increase year-over-year, sitting at +34.8% over May 2024. Month-over-month, inventory levels rose 8.3% in May 2025.
What does this all mean? More homes to choose from, which could give buyers more negotiating power.
When conditions shift to a buyer's market, buyers generally have the upper hand. For example, if a hot water heater needs to be replaced in a listed home, the buyer may have more leverage to ask for the cost to be included as part of the deal, or have the tank replaced by the current owner prior to closing. This may apply to other purchase conditions as well, such as the closing date or taking care of certain fees.
Prices Staying Steady-ish
Though home prices increased in May, it happened at a moderate pace. The median home price reached $442,000, representing a 0.6% increase compared to May 2024.
This shows that prices stayed relatively steady rather than taking any dramatic swings upward or downward. Those looking for homes may be waiting for prices to fall, but at the moment the numbers do not reflect that.
Atlanta's Having a Moment
Everyvmarket is local and has a different story. In Atlanta, the housing market looked lively in May. The city saw more homes coming on market and sales also picked up compared to April. With more inventory and homes staying on the market a bit longer, buyers may find themselves with more negotiating power, however they should consider moving quickly to get the house they want. A local REMAX agent can help determine the level of urgency needed to secure a listing under current market conditions, and of course, the buyer should only proceed with the purchase when they're comfortable and ready.
Numbers at a Glance:
Negotiation Power: Buyers paid about 99% of the asking price on average – same as they did in April, but slightly less than the full asking price in May 2024.
Time to Decide: Homes spent about 39 days on the market, which is two days less than they did in April. This gave buyers a bit more time to think, compared to the quicker 34-day average during May 2024.
Inventory Breathing Room: Inventory levels are at 2.5 months of supply, which is up from 1.9 months of inventory in May 2024.
Where's the Action?
Some cities were absolutely buzzing with new listings. Washington, D.C. led the pack with new listings up a whopping 25.4% from last year. Fayetteville, Arkansas came in second at 25.1%, and Wichita, Kansas came in third at 23.7%. Whether you're looking for urban or rural options, it looks like both market segments saw more inventory.
On the sales front, Wichita, Kansas sales were up 14.1% from last May. Hartford, Connecticut and Fayetteville, Arkansas also saw healthy sales increases, potentially indicating that these markets became more in-demand.
The Sweet Spots
Every market has its own personality. Though we can paint a broad picture with some national trends, the location where you're buying or selling really does matter. Hartford, Connecticut buyers paid above asking price (104.9% on average). This may be due to Hartford's relative affordability as compared to other cities in the Northeast. Cities like San Francisco, California and Manchester, New Hampshire remained competitive due to demand. Meanwhile, Miami had more room for negotiation, with buyers paying about 93% of the asking price. This can be partly attributed to condo inventory.
Baltimore, Maryland experienced greater competition, with homes sitting at just 12 days on the market. For comparison, homes in Miami, Florida and Fayetteville, Arkansas sat on the market for an average of 76 days.
What Does This All Mean?
The housing market is finding a rhythm, with a mix of activity and options from coast to coast. The cost of homes is slightly rising, and with interest rates holding steady (for now), some homebuyers may find it hard to enter the market. On the up-side, more inventory could give buyers more choice and more negotiating power. Meanwhile, sellers saw steady interest and solid prices.
Whether you're thinking about buying, selling, or just love keeping tabs on real estate trends, this market has opportunity on both sides of the transaction. When you're ready to make a move, connect with a REMAX agent to guide you through the process.
