Rising inventory and steep price cuts in South and West US metros as sellers grow desperate to offload homes

Daily Mail​

2 days ago

The US housing market is cooling overall with 33 out of the 50 largest metro areas seeing price cuts, and some falling more rapidly than others.
The pace and severity of the slowdown varied in July, according to new date from Realtor.com. In particular, the South and West shifted decisively in favor of buyers due to rising inventory, deeper price cuts, and homes spending longer on the market.
The housing market in the Northeast and Midwest remains steadier.
'The housing market has cooled modestly in 2025, prompting our lowered outlook for home sales and price growth,' said Danielle Hale, chief economist at Realtor.com.
'But the extent and persistence of rebalancing really varies across the country, and, regionally, homebuyers and sellers are likely to experience a very different market.
'In the South and West, we're seeing clear signs of a shift toward buyer-friendly conditions — more price cuts, rising de-listings, and homes sitting longer on the market — which has led to sometimes sizable price adjustments.
'Meanwhile, the Midwest and Northeast remain relatively tight, with less inventory relief and stronger pricing power for sellers.
'This widening divide underscores how local market dynamics are driving very different experiences for buyers and sellers.'
Nationally, active home listings rose for the 21st straight month and properties took seven days longer to sell than last year, according to Realtor.com.
When it comes to the metros with price cuts, Austin topped the list.
In July, the city had a median home price of $510,950, down nearly 5 percent from 2024. The average days homes spent on the market in July 2025 was 65.5, which is eight more than in 2024.
Miami was listed second on the price cut list, where the median home price was $509,950 in July, down 4.7 percent since 2024. The average days a home sat on the market was 88, up 16 days from the year prior.
Third on the list was Chicago, where the average home price in July was $377,000, down 4.4 percent since the same month last year. The average days a home sat on the market was 35.5, three more than last year.
Los Angeles was fourth for price cuts. The average home price there was $1,148,483 in July 2025, down 4.2 percent from July last year. The number of days the average home sat on the market was 50.5, eight more than in July 2024.
In fifth place was Denver, where a median home was $600,000 last month - a 4 percent increase from a year ago. Homes there sat on the market an average of 52 days, 11 more since July 2024.
Other markets are seeing adjustments, such as Nashville, where list prices are just starting to soften.
'List prices are softening, homes are spending more time on the market, and buyers are finding more room to negotiate,' said Gary Ashton, founder of The Ashton Real Estate Group of RE/MAX Advantage.
'After years of intense competition, it's starting to feel more balanced — especially in the South and West. It's not a buyer's market yet, but we're headed in that direction.'
De-listings are also continuing.
Sellers who cannot find buyers at their desired price are continuing to pull listings from the market.
In June, de-listings rose 48 percent year-over-year.
There were still over 1.1 million homes for sale nationwide in July, the third consecutive month with over 1 million active listings.
Home sales across the US have plummeted to the lowest level in 16 years, according to property data companyCotality.
The situation is especially bad in Florida, where the turbulent housing market has been described as the 'epicenter of housing market weakness' in the US.