August has brought new dynamics to the U.S. housing market, with signs of cooling after years of runaway price growth. On a national level, home price appreciation is slowing: the median existing home price in June 2025 was up just 2% year-over-year, a stark contrast to double-digit increases during 2021-22. In fact, experts are forecasting more modest gains moving forward, and several major forecasters expect some markets to experience outright price declines. Notably, nearly half of the country’s largest metro areas—including Austin, Los Angeles, and Miami—are seeing year-over-year price drops, with the sharpest declines concentrated in the South and West
Rising inventory is reshaping buyer and seller behavior across the country. There are now over 1.1 million active listings nationwide, the highest level since before the pandemic. This uptick is giving buyers more options, increasing average days on market, and prompting many sellers to offer concessions and price cuts to remain competitive. New construction is playing a pivotal role as well, with builders cutting prices and buying down rates to move inventory, especially in regions where building has ramped up over the past few years.
On the financing front, mortgage rates remain elevated but stable: 30-year fixed rates are hovering around 6.7%, with little relief expected in the near term. While this continues to strain affordability for many first-time homebuyers, modest rate declines could still arrive later in the year if inflation cools further. For now, most markets remain balanced rather than swinging decidedly in favor of buyers or sellers. However, those looking to purchase may find slightly better negotiation leverage than last summer, particularly in markets with rising inventory.