Promising news for home buyers
The double-edged sword of low affordability and low inventory has made house hunting harder in recent years.
While the supply of for-sale homes still lags pre-pandemic totals, signals point to a recovery underway. The count of active listings spiked 31.5% annually in May, according to Realtor.com.
Some of the largest inventory gains came in high-demand cities and the share of listings with price reductions remains elevated.
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Active listings make huge leap in May
In a promising sign for prospective borrowers, active home listings surged 31.5% annually in May, according to Realtor.com’s Housing Report.
A typical day during the month yielded 1.036 million for-sale listings and marked the 19th straight month — and 33rd of the past 38 — with year-over-year inventory growth. The listing count rose above April’s 959,251 while overshadowing May 2024’s 787,722. Though active listings are trending upwards, they still lag “normal” prepandemic levels.
“The number of homes for sale is growing, and even hit a key milestone in May, with more than a million active listings. But not every housing market is equally well-supplied,” said Danielle Hale, chief economist at Realtor.com. “Recent construction trends explain a lot of the variation in recovery that we see across markets. Many markets that built aggressively during and after the pandemic are now seeing more listings, longer time on market, and even some modest price softening. In contrast, markets that didn’t build as many homes are still facing an acute shortage, which continues to prop up prices and limit buyer options.”
Regionally, the West saw active listings grow most at a 40.7% annual rate. Then came the South at 32.9%, Midwest at 22.9% and Northeast at 19%.
Among the 50 largest U.S. housing markets, Washington, D.C. led the way with a 75.6% year-over-year gain in active listing count. Jumps of 66.8% in LAs Vegas, 66.4% in San Diego, 63.9% in Denver, and 63.5% in Raleigh, N.C., rounded out the top five.
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The table below shows the metro areas with the 15 largest annual rises in listing count in May:
| Metro Area | Active Listing Count YoY | Active Listing Count vs. May 2019 | Median List Price | Median List Price YoY | Price– Reduced Share |
| Washington, D.C. | 75.6% | -15.90% | $634,900 | -0.7% | 15.8% |
| Las Vegas | 66.8% | 28.60% | $484,999 | 1.7% | 25.4% |
| San Diego | 66.4% | -5.10% | $995,000 | -5.7% | 19.9% |
| Denver | 63.9% | 100.00% | $600,000 | -5.8% | 29.4% |
| Raleigh, NC | 63.5% | 10.20% | $456,695 | -1.5% | 23.4% |
| Charlotte, NC | 56.4% | 7.00% | $450,000 | 3.4% | 23.6% |
| San Jose, CA | 55.7% | 33.10% | $1,419,500 | -3.9% | 13.5% |
| Sacramento, CA | 54.6% | 4.90% | $639,000 | -3.6% | 22.7% |
| Tucson, AZ | 54.6% | 23.00% | $398,000 | -1.1% | 23.2% |
| Los Angeles | 53.9% | -2.50% | $1,195,000 | -2.3% | 15.7% |
| Seattle | 50.7% | 60.90% | $799,000 | 3.1% | 16.2% |
| Riverside, CA | 50.5% | -1.50% | $600,000 | -2.9% | 19.7% |
| Baltimore | 48.7% | -44.10% | $399,999 | 10.4% | 15.3% |
| Columbus, OH | 45.1% | -4.00% | $389,900 | -2.5% | 21.1% |
| Dallas | 44.8% | 55.50% | $440,000 | -3.2% | 27.0% |
On the other end of the spectrum, Milwaukee gained the least for-sale inventory, increasing 7.9% from May 2024. New York City and Buffalo came next, rising 10.7% and 11%, respectively, followed by 13% in Birmingham, Ala., and 14.1% in Minneapolis.
The table below shows the full bottom 15:
| Metro Area | Active Listing Count YoY | Active Listing Count vs. May 2019 | Median List Price | Median List Price YoY | Price– Reduced Share |
| Milwaukee | 7.9% | -46.00% | $399,500 | -0.1% | 10.7% |
| New York | 10.7% | -44.00% | $795,000 | 0.2% | 8.7% |
| Buffalo, NY | 11.0% | -42.50% | $299,900 | 0.8% | 7.0% |
| Birmingham, AL | 13.0% | -18.80% | $299,900 | 0.0% | 18.2% |
| Minneapolis | 14.1% | -20.20% | $446,000 | -2.5% | 12.9% |
| Chicago | 14.5% | -59.30% | $379,900 | -3.8% | 11.5% |
| Hartford, CT | 15.5% | -77.70% | $469,450 | 3.2% | 6.8% |
| Richmond, VA | 17.8% | -38.40% | $460,000 | -1.1% | 12.5% |
| Kansas City, MO | 19.0% | -16.20% | $410,073 | -4.1% | 14.3% |
| St. Louis, MO | 19.4% | -42.40% | $299,900 | -2.5% | 14.3% |
| San Antonio | 20.1% | 58.30% | $340,000 | -1.4% | 24.9% |
| Pittsburgh | 20.2% | -41.30% | $249,900 | -2.9% | 15.8% |
| Louisville, KY | 22.4% | -26.10% | $326,990 | -0.6% | 16.6% |
| Philadelphia | 22.9% | -51.40% | $385,000 | 1.3% | 14.2% |
| Detroit | 23.1% | -28.30% | $270,000 | 3.1% | 13.7% |
Additionally, the median time listings spent on the market reached 51 days, up from 50 days in April and 45 days the year prior. The share of listings with price reductions hit 19.1%, up monthly from 18% and annually from 16.7%. It’s the largest share of price reductions for an May since at least 2016.
The median listing price went to $440,000 in May, rising 2% from April’s $431,250 and 0.1% from May 2024. It also marks a 37.5% five-year growth rate from May 2019’s $310,000.
The bottom line for home buyers
With affordability sidelining many would-be home buyers, more for-sale options could help lower prices for house hunters in 2025.
If you’re searching to purchase a home, it’s helpful to get your ducks in a row. Plus, you could save big money by learning strategies for mortgage rate negotiation and seeing what down payment and closing cost assistance you may qualify for.
Reach out to a local mortgage professional if you’re ready to begin your path to homeownership.
Written by: Paul Centopani