US Housing Market Stabilizes: Increased Inventory and Buyer Negotiation Power [140 characters]

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US Housing Market Stabilizes: Increased Inventory and Buyer Negotiation Power [140 characters]

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In the past 48 hours, the US housing industry has continued to show clear signs of moving toward a more buyer-friendly market. Home prices have steadied, with listing prices flat year over year as of mid-June and down 0.4 percent in the first half of 2025. This stabilization comes after several years of rapid price growth, and signals greater negotiation power for buyers. Inventory is at its highest level in five years, as sellers have returned to the market even while new listings dipped slightly, indicating a slowly increasing supply that is not entirely matched by new construction or new property availability. Demand remains relatively constant, with mortgage applications in May reportedly up 20 percent year over year and the number of buyers showing stability[1][2][4].

Zillow’s most recent forecast projects home values will fall by 1.4 percent over 2025, primarily due to increased inventory and persistent elevated mortgage rates. This supply shift is expected to push existing home sales up to 4.14 million for the year, a 1.9 percent increase over 2024. However, sellers are feeling downward pressure on pricing, partly because buyers now have more options and can negotiate more assertively. Notably, over 62 percent of housing analysts now expect prices to fall this year, up sharply from just 27 percent in January, highlighting a fast change in sentiment[3][5].

Rental markets are also absorbing changes. Zillow expects single-family rents to rise 2.8 percent this year and multifamily rents to grow by 1.6 percent, both forecasts recently revised downward because new construction is increasing vacancies and muting rent growth. Industry leaders are responding by focusing on digital tools, faster transaction processing, and targeted marketing to attract buyers in a more competitive marketplace.

There have been few regulatory disruptions or headline-making mergers in the past week, but the overall narrative is one of normalization. Compared to the volatility of the last two years, current conditions are less frenzied but more balanced. While supply chain issues have not suddenly worsened, builders and sellers are adjusting to a market where realistic pricing and patience are increasingly important. In sum, the US housing market is moving away from crisis and toward equilibrium, albeit with price softness and persistent affordability challenges for many first-time buyers[1][3][5].