Housing Market Shifts as Price Cuts Hit Six-Year High

Active inventory grew 5.4% year-over-year to over 1,161,000 homes, narrowing the gap to pre-pandemic levels to 9.1%. This shift suggests that while supply is becoming more accessible, the increase is driven by stagnant demand rather than a surge of new listings. The stock of homes under contract dropped 4.1% compared to last year, marking the second consecutive monthly decline and the steepest annual fall since March 2025.

Danielle Hale, chief economist at Realtor.com, notes that while buyers are gaining leverage, high financing costs remain a significant barrier. Sellers, meanwhile, are increasingly choosing to adjust prices rather than withdraw their properties from the market. With the national median list price at $419,250—a 1.4% decrease from last year—the market reflects a period of cooling where affordability constraints are forcing a slow, necessary adjustment in price expectations across most major metropolitan areas.