After years of suppressed supply, U.S. housing inventory is seeing a significant boost. As of July 2025, active home listings rose nearly 25% year-over-year—the 21st straight month of growth—bringing national inventory above 1 million for the third month in a row. States like Nevada (+52.9%), Maryland (+48.2%), and North Carolina are leading the surge New York Post. Yet, despite more choices, affordability remains the market’s most pressing challenge. According to the National Association of REALTORS®, 25% of buyers cite housing affordability as their top concern, followed by hopes for lower mortgage rates (19%) and lingering inventory shortages (17%) National Association of REALTORS®. Mortgage rates for 15-year loans could dip to around 5.5% in late 2025—but prices are still climbing, making timing decisions tricky Ramsey Solutions+1. 2. A Market Tilt Toward Moderate Regional Growth National home values are inching upward—home prices have seen modest gains of around 2–3% year-over-year HouseCanaryHAR.com. Still, growth isn’t evenly distributed. Smaller and more affordable markets—like Brunswick, GA (up 7.1%), Grand Island, NE (6.3%), and Glens Falls, NY (5.9%)—are outperforming many larger urban areas HouseCanary. At the same time, once-booming markets in Florida are cooling sharply, placing among the coldest in 2025, as rising property taxes and insurance costs dampen buyer enthusiasm Business Insider. Homes are also spending more time on the market in cities like Nashville, Orlando, Miami, and Tucson New York Post. 3. A Window of Opportunity on the Horizon Experts now see the U.S. housing market in a “post-rate-cut opportunity” phase. A combination of easing mortgage rates, shifting investor behavior—including renewed bets from the likes of Warren Buffett—and adjustments in macroeconomic policy are creating potential openings for strategic investors AInvest. Meanwhile, projections for the market remain steady; analysts foresee house prices possibly growing but at a slower rate than before Norada Real EstateAInvest. 4. Premiums Persist in Top School Districts While broader trends show moderation, homes in high-rated school districts continue to command hefty premiums—on average $1.21 million, or 135% above regional medians. Areas like Texas’s Carroll Independent School District ($2.16M, +391%), Laguna Beach Unified in California ($5M, +322%), and Reed Union near San Francisco ($4M) exemplify this trend New York Post. For families chasing education access, these markets remain fiercely competitive. What It Means for Buyers, Sellers & Investors Buyer’s Brief: Where to look? Smaller cities and mid-size markets may offer more growth potential and affordability. Choose your moment: More inventory and softening competition are giving buyers leverage—especially in previously overheated markets. Mind the premiums: Top school zones still come with deep price tags. If school proximity isn’t a must, consider exploring nearby alternatives. Seller’s Snapshot: Set smart expectations: Slower sales and price adjustments are becoming more common, especially in South and West metros. Highlight what matters: If your home boasts access to great schools, good mortgage terms, or energy-efficient upgrades, promoting those features can help differentiate. Investor’s Insight: Watch for the rate shift: If the Fed lowers rates in Q3, refinancing and acquisition opportunities may open up. Eye growing markets: Investors looking for yield or growth may find better value in emerging markets outside coastal centers. Final Thoughts 2025 is shaping up to be a nuanced housing year. The market is easing—but not crashing—thanks to rising inventory, persistent affordability strains, and shifting demand toward more affordable, often overlooked regions. Meanwhile, pockets of resilience like top school districts and rate-sensitive zones still command attention. Layer in the potential boost from expected mortgage rate cuts, and you’ve got a market that’s moving away from pandemic extremes toward a more considered and strategic landscape. Let me know if you'd like a deeper dive into any of these trends—whether it’s regional snapshots, financing forecasts, or how proptech and AI are reshaping real estate dynamics.Sheree Byrd, Realtor®