The total value of U.S. real estate inventory has reached a historic high, leading to oversupply and putting downward pressure on housing prices.

According to the latest report released by the real estate brokerage firm Redfin, as of April 2025, the total listing value of homes for sale on the market in the United States reached $698 billion, an increase of 20.3% compared to the same period last year, hitting the highest level recorded since 2012. This data reflects the unprecedented imbalance between supply and demand in the current U.S. real estate market. The report points out that this record total value is not simply due to an increase in housing prices, but is the result of a combination of increased inventory and decreased demand. From the supply side, with the gradual weakening of the effect of locked mortgage rates, coupled with increased economic uncertainty, more and more homeowners are choosing to list their properties for sale this spring in an attempt to "cash in" on their assets before any market adjustments. In April 2025, the number of homes listed for sale in the U.S. increased by 16.7% compared to the same period last year, reaching a new high in nearly five years. New listings also increased by 8.6% compared to the same period three years ago, reaching the highest level in three years. This means that there are more sellers in the market than before, but the number of buyers has not kept up. At the same time, the willingness of buyers to purchase homes has significantly decreased. High housing prices combined with historically high mortgage rates have made monthly payments unprecedentedly burdensome, coupled with uncertain economic prospects, leading many potential buyers to temporarily withdraw from the market. Redfin feedback from agents in multiple locations mentioned that even clients with the need to purchase a home are more frequent in temporarily canceling contracts or delaying decisions than in the past. In April 2025, homes remained on the market for an average of 40 days before entering the transaction process, an increase of 5 days compared to the same period last year, indicating a significant slowdown in transaction pace. The continuing accumulation of unsold listings has become another phenomenon worth noting. The report shows that as of April, 44% of listed properties have been on the market for over 60 days without being sold, referred to by Redfin as "unsold inventory". The total value of these properties amounted to $331 billion, accounting for nearly half of the total value of all listed homes, an increase of 20.5% compared to last year. This not only indicates a decrease in market activity but also implies that there will be greater pressure for future price adjustments. It is worth mentioning that although the median house price increased by 1.4% year over year, the total listing value of homes increased by a whopping 20.3%, indicating that the main factor driving the increase in total value is not the housing price itself, but the significant increase in the number of homes listed in the market. Redfin data shows that there are currently approximately 500,000 homes in the United States that "cannot find buyers," a tangible manifestation of the "imbalance" in the real estate market. Compared to the early period of the COVID-19 pandemic in 2022, when the mortgage rate in the U.S. was only 3.1%, housing supply was extremely tight, and the total listing value briefly fell to $309 billion, with homes on the market selling in an average of 24 days. Now, with extended listing periods, fewer buyers, and inventory piling up, the housing market is not as hot as before. Chen Zhao, Chief Economist at Redfin, stated that the record listing value is a quantitative manifestation of the current "buyer's market". The continuous increase in inventory and the widespread existence of unsold listings will exert downward pressure on house prices later in the year. Redfin predicts that by the end of 2025, house prices in the U.S. will decline by about 1%, which may be a positive signal for homebuyers, as residents' incomes are continuing to grow steadily, and price adjustments are expected to improve overall affordability. In such a market environment where supply exceeds demand, some sellers have begun to accept reality and are willing to make concessions on prices. Matt Purdy, a senior broker at Redfin in the Denver area, pointed out that this spring saw a large number of new listings in the market, but the number of buyers was not enough to "digest" all the homes. Nowadays, buyers will only make a purchase when it is "absolutely necessary," and even active buyers are more likely to terminate transactions than before. "For buyers, now is the time to negotiate prices," Purdy said. "Sellers are aware of the changes in the market, and many are willing to negotiate on prices."