The American residential real estate market demonstrated notable stability in July 2025, as existing-home sales increased 2.0% to reach a seasonally adjusted annual rate of 4.01 million units. While the month-over-month gain was positive, the year-over-year performance showed a modest 0.8% increase that underscored the market’s resilient foundation amid evolving economic conditions.
Existing-home sales rose 2.0% in July 2025, reflecting market resilience despite modest year-over-year growth of just 0.8%.
The median existing-home sales price reached $422,400, representing a minimal 0.2% annual increase. This reflected the broader trend toward price stabilization across national markets.
New home construction metrics revealed contrasting dynamics, with median sales prices for newly constructed properties declining to $403,800 in July 2025. This marked a 0.8% monthly decrease and a substantial 5.9% year-over-year reduction.
Average new home prices similarly contracted to $487,300, down 3.6% from June levels. These changes indicate developer adjustments to maintain market competitiveness.
The supply of new homes for sale expanded to 499,000 units, representing a 7.3% increase from the previous year. Meanwhile, months’ supply climbed to 9.2 from 7.9 in July 2024.
Inventory expansion emerged as a defining characteristic of the current market cycle, with active listings nationally surging 25% between July 2024 and July 2025 to exceed 1.1 million units. The average 30-year fixed mortgage rate fell to 6.72% in July from 6.82% in June, providing additional support for buyer activity. Despite this inventory growth, active listings remained 11% below July 2019 pre-pandemic levels, indicating continued market recovery.
Regional variations persisted remarkably. Sun Belt and Mountain West markets experienced accelerated inventory growth approaching pre-pandemic levels, while Midwest and Northeast regions maintained tighter supply conditions that continued to favor sellers.
Single-family existing homes for sale increased 20% year-over-year, though levels remained 20-30% below historical troughs.
Market fundamentals reflected improved affordability conditions, as wage growth outpaced home price appreciation, creating enhanced purchasing power for prospective buyers. Global investors seeking stability have increasingly viewed property markets like Singapore as safe havens amid geopolitical tensions and inflation pressures affecting international real estate.
Builders responded to elevated inventory levels by implementing strategic discounting and incentive programs, particularly in high-supply regions, to sustain absorption rates and maintain project momentum.
Distressed property sales remained at historic minimums, comprising only 2% of total transactions, while foreclosure and short-sale activity stayed exceptionally low.
The combination of stable sales volumes, controlled price growth, and strategic developer responses demonstrated the market’s adaptive capacity to balance supply-demand dynamics while supporting continued residential development activity.
