Weekly Special | May 21, 2025

Neutral Market Gives Buyers More Choices

Although the number of homes for sale has been rising, it’s the reduced demand—driven by affordability challenges—that’s nudging the market back toward equilibrium.

Market equilibrium in residential real estate occurs when the supply of homes for sale matches the demand from buyers at a given price level, resulting in relatively stable home prices and balanced negotiating power between buyers and sellers.

Historically, six months of inventory signaled a balanced housing market. But with today’s digital marketing and faster home search tools shortening time on market, true equilibrium may now be closer to four months of supply.

The gold field on the graph falls between six and four months supply of homes, and the single line on the graph current resides at 4.1 months of supply.

Buyers are beginning to notice more homes on the market—and staying there a bit longer—while sellers are realizing the need to price competitively to attract attention. In short, the market is starting to feel more “normal,” even though fewer homes are selling each month than in years past.

Warning: Area & Price Range Matter Just a reminder for our newer readers: real estate is hyper-local. The trends in today’s graph may not reflect what’s happening with your current home—or the one you hope to buy. That’s why it’s essential to work with a highly active, well-informed real estate expert. Market conditions vary, and effective negotiation strategies must adapt accordingly.

Are you hearing news about a growing foreclosure crisis? There are two key factors that protect the vast majority of homeowners, even those who might fall behind on payments. (See Why Here)

The original one-page Weekly Special PDF is still available.