Sellers are waiting out a slumping market as homes continue to linger longer on the market—a clear sign that buyers aren't ready to commit to a purchase.
The median time on the market reached 58 days nationally last week—a day longer than the corresponding week in July 2019, according to the Realtor.com® Weekly Housing Trends report for the week ending July 19.
"The lack of significant buyer response to substantial gains in for-sale inventory has pushed many sellers to reduce prices," explains Jake Krimmel, senior economist at Realtor.com. "The price reduction share reached roughly 1 in 5 homes in June, the highest June share in the data’s history."
The report reveals that annual price growth remained steady, but homes spent more time on the market. New listings were nearly flat year over year, which is a sign that "seller momentum might be losing steam, faced with lackluster buyer demand in much of the country."
It all comes at a time when mortgage interest rates rose yet again. The average interest rate on a 30-year fixed mortgage increased to 6.75% for the week ending July 17, according to Freddie Mac. That's up from 6.72% the week before.
Despite the increase in mortgage rates, people applying for a mortgage ticked up slightly to 0.8% for the week ending July 18, according to the Mortgage Bankers Association.
"Big-city home shoppers continue to search for a home in other areas, likely looking for a deal while market headwinds persist," says Krimmel.
Inventory check
New listings rose 7.2% year over year. Meanwhile, the number of homes active on the market climbed 24.4% year over year, slightly lower than last week. It's still the 89th consecutive week of an annual increase in inventory.
"There were more than 1 million homes for sale again last week, marking the 11th week in a row over the threshold and the highest inventory level since November 2019," says Krimmel. "While choices for buyers have expanded, affordability constraints continue to limit buyer activity. The lack of significant buyer response to substantial gains in for-sale inventory has pushed many sellers to reduce prices."
With more people putting their homes up for sale—leading to an increase in inventory—all the homes are spending more time on the market than a year ago. The median time on the market reached 58 days nationally, which is a day longer than the same time in July 2019.
The median list price is also up 0.8% year over year. The median list price per square foot—which adjusts for changes in home size—rose 0.5% year over year.
"With inventory on the rise and more than 1 in 5 sellers cutting prices, the market continues to soften and shift toward more buyer favorability," says Krimmel. "However, without significant movement in mortgage rates or home prices, many buyers are still unable to take advantage."
The part of the country you live in will also make a difference. Inventory and median time on the market have surpassed typical pre-pandemic levels, putting downward pressure on list prices in the South and West. Meanwhile, the Northeast and Midwest remain relatively tight and continue to see modest price growth, according to the June 2025 Monthly Housing Market Trends.
Read more at Realtor.com
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