US Housing Market November 2025 Report: Inventory, Pricing, and Rental Trends

The housing market is finally reaching that sweet spot investors and buyers have been waiting for – equilibrium. According to HouseCanary's latest October 2025 Market Pulse, we're seeing inventory growth slow while buyer activity remains surprisingly strong. Translation? Opportunities are emerging for those who know how to spot them.

Here's what the numbers tell us: Total inventory jumped 19.6% year-over-year, putting us back at pre-COVID levels. Meanwhile, 272,257 properties went under contract nationwide – a solid 10.4% increase from last October. The market isn't crashing or booming; it's normalizing. And that's exactly where smart money makes moves.

Inventory Shifts Create New Opportunities

The inventory story has two sides that savvy investors need to understand. On one hand, months of inventory hit 5.43 months – officially neutral territory that's flirting with buyer-friendly conditions. Median days on market stretched to 55 days, up from 52 days last year.

But here's the kicker: new listings actually dropped 9.5% compared to October 2024. The inventory growth came from homes staying on the market longer, not a flood of new supply. This creates interesting pockets of opportunity.

For investors, this means you're not competing against an avalanche of new properties, but you do have more time to analyze deals. Properties that might have sold in 30 days are now sitting for nearly two months, giving you leverage to negotiate.

For homebuyers, you finally have breathing room. No more weekend bidding wars or waiving inspections. You can actually tour a home twice before making an offer.

Price Dynamics Tell the Real Story

The pricing picture reveals where the real opportunities lie. Median listing prices hit $449,062 – up just 0.3% year-over-year. That's essentially flat. But closed prices reached $438,647, up 3.5% annually. This gap tells us sellers are still trying to price optimistically while buyers are negotiating harder.

The most telling stat? Price cuts surged 24.2% year-over-year – the highest level since 2020. Sellers are getting realistic about market conditions, creating opportunities for prepared buyers and investors.

Contract activity by price tier reveals where the action is:

• $0-$200k: Contract volume up 11.3% (despite 13.8% fewer new listings)

• $200k-$400k: Contracts up 11.0%

• $400k-$600k: Contracts up 10.9%

• $600k-$1M: Contracts up 9.1%

• $1M+: Contracts up 8.1%

The pattern is clear: affordable housing segments are outperforming luxury markets. Middle-market properties ($200k-$600k) are seeing the strongest activity.

What This Means for Your Strategy

Home Buyers: Your Time is Coming

With 5.43 months of inventory and rising price cuts, buyers have their first real advantage in years. You're not just getting more selection – you're getting seller motivation.

Action items:

• Don't rush. Properties are sitting longer, so take time for proper due diligence

• Negotiate repairs and closing costs. Sellers are more flexible than they've been since 2020

• Consider homes that have been on market 45+ days – those sellers are most motivated

Real Estate Investors: Focus on Cash Flow Markets

The data shows contract strength in affordable segments while rental inventory expands. This creates a specific opportunity: cash flow properties in the $200k-$400k range where buyer competition remains strong but rental demand is solid.

Key insights:

• Single-family rental inventory jumped 24.1% year-over-year

• Median rents dropped 2.1% to $2,473

• Contract volume strongest in middle-market price ranges

This combination suggests buy-and-hold investors should focus on markets where rents remain stable despite inventory growth. Look for areas where the 24.1% rental inventory increase hasn't caused significant rent drops.

Current Homeowners: Refinance and Reposition

If you bought in the last two years, this market shift creates refinancing opportunities as rates continue moderating. If you're considering selling, understand that pricing strategy matters more than ever.

Strategic moves:

• Price competitively from day one. The 24.2% increase in price cuts shows overpricing backfires

• Consider rent-vs-sell analysis if you're relocating. Rising rental inventory might favor selling

• Time your move carefully. Buying has gotten easier; selling requires more strategy

Single-Family Rental Market Implications

The rental data deserves special attention from investors. Inventory up 24.1% while rents dropped only 2.1% suggests the market is absorbing increased supply without major rent collapse. This is actually positive for long-term investors.

What's happening:

• More rental options for tenants, but demand remains steady

• Slight rent moderation creates entry opportunities for new investors

• Geographic variations matter more than ever

The key is selectivity. Some markets are seeing rental oversupply while others maintain tight conditions. Focus on areas where job growth and population trends support continued rental demand despite inventory increases.

Geographic and Price Tier Strategy

The contract volume data reveals where smart money is moving. The $200k-$600k range shows the strongest buyer activity, while luxury markets ($1M+) have the smallest gains. This isn't coincidence – it's affordability driving demand.

For investors, this means:

• Target properties in the $250k-$500k range where buyer competition remains strong

• Avoid over-improved markets where luxury inventory is building

• Consider emerging suburbs where middle-market buyers are expanding their search

For homebuyers:

• Competition remains real in affordable segments, so be prepared to move quickly on well-priced homes

• Luxury markets offer more negotiating room but fewer buyers overall

• Middle markets ($400k-$600k) balance selection with competition

Market Timing and Rate Environment

While HouseCanary's data focuses on sales activity and inventory, the broader rate environment supports these trends. Mortgage rates have moderated from 2024 highs, making financing more accessible for qualified buyers.

This creates a window where inventory normalization meets improved affordability – exactly the conditions that create opportunities for informed participants.

Action Plan for the Next 90 Days

The market is moving toward equilibrium, but opportunities exist for those who act strategically:

Immediate priorities:

1. Buyers: Start shopping with confidence but maintain due diligence standards

2. Investors: Analyze markets where rental inventory growth hasn't crashed rents

3. Sellers: Price realistically and prepare for longer marketing times

4. Refinancers: Evaluate current rates against your existing loans

The data shows a market that's neither hot nor cold – it's balanced. And balanced markets reward preparation, analysis, and strategic thinking over emotional reactions.

As 2025 draws to a close, we're seeing the housing market mature into something more sustainable than the extremes of recent years. Smart participants who understand these trends and act accordingly will find opportunities others miss.

Ready to capitalize on these market conditions? Whether you're buying your first home, adding to your investment portfolio, or optimizing your current financing, the right strategy starts with understanding where rates and terms provide maximum advantage.

Contact Unbeatable Loans today to see how these market conditions can work in your favor. You found the market opportunity – now you need an Unbeatable loan to capitalize on it.