Compared to 1 year ago, the U.S. median existing-house sales price ticked up .3% in July 2025, while the median condo/co-op price declined 1.2%. The number of active listings increased slightly from June and 16% from July 2024, while sales volume dropped slightly both month over month and year over year. Nationally, the market remains relatively subdued, effectively hungover from the political/economic volatility and uncertainty prevailing in Q2, but conditions and price changes vary by region. Most areas see a seasonal slowdown in summer, though big second-home markets often buck this trend.
58% of sales went into contract within 1 month of coming on the market (vs. 62% in July 2024); 21% sold above asking price (vs. 24% last year); and median time-to-offer-acceptance was 28 days, up 4 days from July 2024. Cash purchases accounted for approximately 31% of transactions; 28% of sales were to first-time buyers; 6% were for vacation use; and the percentage of “distressed” sales remained very low at 2%. The average number of offers for sold homes was 2.1 (vs. 2.7 last year), while the number of price reductions rose 22% year over year to its highest month-of-July count since 2018. Over the past 3 months, 6% of contracts were cancelled before close of escrow and 13% saw delays in closing.
As of August 20th, mortgage rates, at slightly over 6.5%, are at their lowest since October, but many analysts believe a reduction to the 6% range is needed to significantly boost buyer demand. Stock markets remain close to all-time highs, a big positive for more affluent real estate markets. The last inflation reading was unchanged at 2.7%, but the more recent Producer Price Index saw its largest monthly increase in over 3 years. The Fed kept their benchmark rate unchanged, but consensus opinion is predicting a drop in September: Much depends on the next inflation report. “Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April...however, [they] continue to expect both inflation and unemployment to deteriorate in the future." (University of Michigan Surveys of Consumers)
