In January, the number of homes for sale in the U.S. rose slightly, providing homebuyers with more choices and leverage, according to new Realtor.com data. However, this increase slowed as the recovery toward pre-pandemic inventory levels faltered, undoing recent progress.
Listings increased by 10% nationwide last month compared to the same month last year, signifying the 27th straight month of annual inventory growth. The downside: As per the most recent monthly housing market trends report from Realtor.com, that growth has been slowing for nine consecutive months.
To provide context, in May and June of 2025, the number of active listings increased by approximately 30% compared to the previous year—this was about three times the growth rate seen in January.
For-Sale Homes Giving Homebuyers More Options
This cooling has dealt a significant setback to the recovery of housing stock, which is now heading in the wrong direction. Data analysis indicates that the January inventory was more than 17% lower than the norms from 2017 to 2019, representing the largest gap since March. For purchasers, a more limited inventory translates to prices that remain obstinately high. The median list price in January was $399,900, identical to the previous month and nearly the same as a year prior.
“After meaningful inventory gains last year, the recovery has lost steam,” said Danielle Hale, Chief Economist at Realtor.com. “Even with more homes on the market than a year ago, supply remains well below pre-pandemic levels, keeping prices firm nationally.”
In terms of inventory growth in the U.S., the West topped the list with a rise of 12.2%, followed by the Midwest (10.3%) and the South (10.1%). The Northeast lagged behind once more, registering an increase of only 6.6%. While 46 of the largest housing markets in the country saw annual increases in active listings at the metro level, three cities distinguished themselves by experiencing the most significant surges.
In January, Seattle led the way, as the inventory in the metro area increased by 32.4% compared to the same period in 2025. Charlotte, NC, saw a year-over-year (YoY) rise in active listings of 28.6%, marking the second-highest increase, while Washington, DC, followed in third place with a 26.8% increase.
“For Seattle and Charlotte, homes sitting longer on the market is the primary factor for their recent inventory gains,” said Jake Krimmel, Senior Economist at Realtor.com.
In January, the average home in Seattle that was for sale lingered on the market for 15 days longer than it did the previous year. In Charlotte, the median market duration increased by 12 days.
Michael Orbino, who serves as managing broker at Team Foster Builder + Developer Services within Compass, informs Realtor.com that the accumulation of listings in Seattle is partially due to layoffs in the city’s tech sector.
“Several companies, including T-Mobile, Microsoft, and Amazon, are repositioning their workforces,” said Orbino. “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.”
Median Listings in Popular Metros Vary, Leaving Buyers More Room to Explore
In January, the median list prices in Seattle and Charlotte were $730,000 and $415,000, respectively. And according to Orbino, although Seattle’s market has many active buyers, these individuals are generally careful regarding their buying choices. Furthermore, with a greater variety of housing options such as luxury homes, new builds, townhomes, and condos, buyers are at an advantage.
Brokers recommend that sellers concentrate more on getting their homes ready to compete with other houses. Home buyers typically favor updated, well-cared-for turnkey properties. Should a listing fail to meet a buyer’s criteria, they will just proceed to the next one.
Further, the number of new listings in Washington, DC, increased by 9.4% compared to January 2025, and the average home was on the market for only six days longer than it was a year prior.
As per Krimmel, the surge in DC’s inventory is probably due to unique factors associated with last year’s extensive federal job reductions, spearheaded by the now-defunct Department of Government Efficiency, and uncertainty regarding local economic conditions. The median list price in the DC metro area saw a nearly 5% YoY decline, reaching $549,000 in January.
Growing Inventory Hindered by Multiple Factors
On a national level, the growth of inventory has been decelerating since May 2025 due to various factors, including slow increases 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,” Krimmel said, referring to President Donald Trump’s signature policies. “This translated into businesses slowing hiring, labor market anxiety, and lower consumer sentiment.”
Another component impacting new listings is the trend of delisting, as sellers who are exasperated are more and more often pulling their homes off the market after not achieving their target prices.
According to Krimmel, as mortgage rates hover around 6%—which is a full percentage point lower than last year—home sales are anticipated to recover in the spring. This raises an important question: will there be sufficient supply in the appropriate metropolitan areas to satisfy the increasing demand?
“The coming months will be a real test for the inventory recovery and the road to affordability,” Krimmel said. “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.”
To read more, click here.
The post For-Sale Homes Offering Buyers More Options & Leverage in These Metros first appeared on The MortgagePoint.
