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Home»Real Estate»Housing inventory growth is starting to stall
Real Estate

Housing inventory growth is starting to stall

July 27, 2025No Comments3 Mins Read
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Weekly housing inventory data

2025 and 2024 have seen significant growth in housing inventory, marking a shift from an unhealthy market to a more stable one. While there was a slight decline in existing home sales inventory last week, it’s not unexpected given that NAR inventory data usually peaks in the summer. Altos data offers fresh weekly inventory insights, providing a real-time look at available homes for sale.

Last week, inventory growth slowed compared to the previous week.

  • Weekly inventory change (July 18-July 25): Inventory increased from 856,751 to 860,426
  • The same week last year (July 19-July 26): Inventory increased from 668,358 to 677,246

New listings data

The peak week for new listings in 2025 was May 23, with a total of 83,143 listings. While hitting the minimum weekly target of 80,000 new listings is positive, it would have been ideal to see numbers between 80,000 and 100,000 for a peak new listings period. Comparing last week’s new listings data for the past two years:

  • 2025: 71,521
  • 2024: 68,404
chart visualization

Price-cut percentage

Price reductions are common in the housing market, especially with increasing inventory levels and mortgage rates. This year, price-cut percentages are higher compared to last year, aligning with a cautious growth forecast for 2025.

Comparing the percentages of homes with price reductions in the previous week over the last two years:

chart visualization

Purchase application data

Last week, purchase application data showed a 3% week-to-week increase and a 22% year-over-year growth. Despite mortgage rates holding steady, this growth trend has been consistent throughout 2025.

Weekly data for 2025 includes:

  • 13 positive readings
  • 10 negative readings
  • 5 flat prints
  • 25 straight weeks of positive year-over-year data
  • 12 consecutive weeks of double-digit growth year over year
chart visualization

Weekly pending sales

Weekly pending home sales provide insight into short-term trends, with last week showing slight growth compared to the previous year.

Weekly pending sales for last week:

  • 2025: 70,609
  • 2024: 64,765
chart visualization

Total pending sales

Current total pending sales data from Altos highlights trends in housing demand, with year-over-year growth primarily attributed to a low bar set in 2024. Comparing total pending sales for 2025 and 2024:

  • 2025: 384,307
  • 2024: 382,429
chart visualization

10-year yield and mortgage rates

Anticipating mortgage rates between 5.75% and 7.25% and the 10-year yield fluctuating between 3.80% and 4.70% in 2025, recent weeks have seen stability in these rates with minor fluctuations. Market movements may be expected based on upcoming economic data and Federal Reserve announcements.

chart visualization

Mortgage spreads

Improved mortgage spreads in 2025 have positively impacted the housing market, potentially preventing worse demand scenarios. Although not reaching the forecasted levels yet, the current spreads are close to the expected improvement.

If spreads were at peak 2023 levels, mortgage rates would be higher today, highlighting the significance of normalized spreads in maintaining lower mortgage rates.

chart visualization

The week ahead: It’s jobs week and Fed week!

The upcoming week is crucial for economic news, with labor reports and the Federal Reserve meeting on the agenda. Focus will be on private payroll data and wage growth trends, significant indicators monitored by the Fed. Stay tuned for market movements based on upcoming data releases and Fed announcements.

chart visualization

Key points from the upcoming jobs report will include private payroll data and wage growth trends, while the Fed’s language and press conference interactions will be closely watched for market impact.

growth Housing Inventory Stall starting
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