More Homes Are Hitting the Market—Why Aren’t Buyers Jumping In?

The housing market is seeing an unusual trend lately. Inventory is up by 16% compared to last year, meaning more homes are available than buyers have seen in years. Yet, pending home sales dipped slightly in June and continue to trail last year's numbers. So, what gives?

A Surge in Listings, A Pause in Market Activity

June brought a notable jump in new listings nationwide—up 6.3% from last year. Sellers are slowly becoming more confident as home prices remain high and inventory levels tick up. But despite the growing number of homes on the market, many buyers are holding back.

Why? Mortgage rates are still hovering around 7%, and for a lot of potential buyers, that’s simply too steep. Affordability is top-of-mind, and many are choosing to wait and see whether rates will come down later this year.

Location Still Matters

Interestingly, the Northeast region saw a modest increase in pending sales in June, bucking the national trend, alongside a sharp rise in median prices. This highlights how local market dynamics can differ widely from national averages.

What This Means for Buyers and Sellers

If you’re thinking of selling, now could be a strategic time to list. With more inventory, you’ll face more competition—but serious buyers are still out there, especially for well-priced, move-in ready homes.

For buyers, this cooling-off period can offer a less competitive environment to shop around, make thoughtful decisions, and even negotiate on price or terms.

Looking Ahead

While the market isn’t as hot as it once was, it’s stabilizing—and that’s a good thing. As we move into the fall, experts will be watching closely to see whether interest rates shift and how that impacts buyer demand. Check more from NAR’s latest home sales report here.