1 hour ago
3
The number of homes for sale in the US continued to inch upward in January, offering homebuyers more options and leverage—but the pace slowed as the recovery toward pre-pandemic inventory levels stumbled, erasing recent gains.
Nationally, listings climbed 10% last month compared with a year earlier, marking the 27th consecutive month of annual inventory growth.
The downside: The pace of that growth has slowed for nine straight months, according to the latest Realtor.com® monthly housing market trends report.
For context, in May and June 2025, active listings surged by roughly 30% year over year—about three times January’s growth rate.
This cooling has delivered a major blow to housing stock recovery, which is now moving in the wrong direction.
According to data analysis, January inventory was over 17% below 2017–19 norms, marking the widest gap since March.
For buyers, tighter inventory means stubbornly elevated prices. In fact, the median list price in January stood at $399,900, the same as the month before and virtually unchanged from a year ago.
“After meaningful inventory gains last year, the recovery has lost steam,” says Realtor.com Chief Economist Danielle Hale.
“Even with more homes on the market than a year ago, supply remains well below pre-pandemic levels, keeping prices firm nationally.”
Metros that saw surging inventory growth
Regionally, the West led the US in inventory growth (+12.2%), followed by the Midwest (+10.3%) and the South (+10.1%), with the Northeast once again bringing up the rear (+6.6%).
At the metro level, 46 of the nation’s largest housing markets logged annual gains in active listings, but a trio of cities stood out for recording the largest spikes.
Seattle was ahead of the pack in January, with the metro’s inventory climbing 32.4% from the same period in 2025.
Charlotte, NC, experienced the second-sharpest increase in active listings year over year, at 28.6%, with Washington, DC, in third, at 26.8%.
“For Seattle and Charlotte, homes sitting longer on the market is the primary factor for their recent inventory gains,” explains Realtor.com senior economist Jake Krimmel.
The typical for-sale home in Seattle waited for a buyer in January 15 days longer than a year ago. In Charlotte, the median time on the market was up 12 days.
Michael Orbino, managing broker at Team Foster Builder + Developer Services at Compass, tells Realtor.com that technology layoffs in Seattle are partly to blame for listings piling up in the city.
“Several companies, including T-Mobile, Microsoft, and Amazon, are repositioning their workforces,” he says.
“This is not a large part of the inventory but often puts buyers in pause mode, which has the effect of slowing down absorption, which increases inventory.”
The median list prices in Seattle and Charlotte were $730,000 and $415,000, respectively, in January.
Start your day with all you need to know
Morning Report delivers the latest news, videos, photos and more.
Thanks for signing up!
Orbino says that while there are plenty of active buyers in Seattle’s market, they tend to be cautious about their purchasing decisions.
Also, with more housing options available, including luxury homes, new construction, townhomes, and condos, buyers hold the advantage.
“Sellers have to focus more on preparing their homes to compete against other homes,” says the broker. Home shoppers usually prefer updated, well-maintained turnkey properties.
If a listing does not meet a buyer’s standards, they will simply move on to the next one.
Washington, DC, has seen an influx of new listings, which were up 9.4% from January 2025, and the typical home remained on the market for just six days longer than a year ago.
According to Krimmel, DC’s inventory surge is likely the result of unique factors related to last year’s sweeping federal job cuts, led by the now-defunct Department of Government Efficiency, and uncertainty over local economic conditions.
In the DC metro, the median list price dropped nearly 5% year over year, settling at $549,000 in January.
What is holding inventory back?
Nationally, inventory growth has been losing steam since May 2025, driven by a combination of factors, including sluggish gains in new listings.
“This is due to several factors, but perhaps most notably the economic uncertainty we saw for most of last year following the tariff announcement and ramping up of the trade war,” says Krimmel, referring to President Donald Trump’s signature policies.
“This translated into businesses slowing hiring, labor market anxiety, and lower consumer sentiment.”
A second factor weighing on new listings is the delisting trend, with fed-up sellers increasingly withdrawing their homes after failing to get their desired prices.
Krimmel says that with mortgage rates near 6%—a full percentage point lower than a year ago—home sales are expected to rebound in the spring, raising a key question: will there be enough supply in the right metros to meet the rising demand?
“The coming months will be a real test for the inventory recovery and the road to affordability,” notes the economist.
“A reacceleration in listings growth alongside easing mortgage rates could bring the market into better balance and move the needle on affordability. If supply continues to drift tighter, however, lower rates may simply reignite competition and limit how much relief buyers actually feel.”
English (US)