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The housing market is seeing signs of balance, according to the Realtor.com® August 2025 Monthly Housing Market Trends report — but dig deeper, and the picture looks far from uniform.
The metro-level “months of supply” data shows the national market sitting at a textbook five months of supply, right in the middle of the buyer-seller spectrum.
Among the 50 largest metros, however, there’s a sharp divide: Seven are in clear buyer’s market territory (with at least six months of supply), 20 remain strong seller’s markets (less than four months), and 23 are balanced.
That split reflects broader regional patterns. The South and West are seeing the biggest inventory gains and more frequent price cuts, while the Northeast and Midwest remain tight — though both regions are gradually moving toward balance.
Miami’s unusual buyer’s market
Miami leads the country in supply: 9.7 months in June.
“Most of the extra inventory tends to be older homes or properties that haven’t been renovated,” Laura Barrera, a Miami-based luxury real estate agent, told Realtor.com. “Buyers today are interested in move-in ready homes with something special, especially in premium areas like Coconut Grove, Miami Beach and Bal Harbour. When those opportunities hit the market, they don’t last long, sometimes just a few days.”
With interest rates dropping to 6.26 percent as of Sept. 18 — the lowest since October 2024 — Barrera said buyers are gaining more purchasing power, while sellers may be dusting off expired summer listings for a second chance.
“What before they could only spend $2 million on, now might be closer to $2.5 or $3 million,” she explained.
Still, not every corner of Miami is flush with homes.
“Miami Beach actually has less inventory compared to 2024,” said Barrera. “The extra inventory is typically older homes that need renovation. Marketing and pricing strategies need to be precise if sellers truly want to sell and not sit on the market for 75-plus days.”
Barrera also noted that the trend of buyers scooping up overpriced listings is gone. Instead, they are leaning toward well-positioned homes.
“Sellers are becoming more realistic, and I believe agents should be, too. Don’t take a listing by creating false expectations,” she said. “Newly renovated, move-in ready homes will sell fast and closer to asking price, while older homes will take longer to sell.”
What ‘months of supply’ means
The new Realtor.com measure offers more than just a snapshot — it can signal what’s ahead for prices.
“In general, higher months of supply translates into slower or negative price growth,” said Jake Krimmel, senior economist at Realtor.com. “Conversely, low months of supply, especially under four, is usually associated with higher price growth.”
That’s because more supply means sellers must compete with one another, often through price cuts. In tight markets, it’s the opposite: Buyers end up bidding against one another, which pushes prices higher.
Every major metro with more than six months of supply in June saw prices fall in August, on a per-square-foot basis. Metros with less than four months of supply saw stronger price growth.
Krimmel cautioned that balance doesn’t necessarily equal affordability.
“Affordability is more about prices relative to incomes and interest rates,” he said. “For example, both Milwaukee and Boston are in a strong seller’s market right now, but Milwaukee is much more affordable with a median price under $400,000, compared to Boston’s around $800,000.”
Beyond Miami, Austin, TX (7.1 months) and Orlando, FL (6.9 months), also sit deep in buyer’s market territory, while metros such as Los Angeles, Denver and Portland, OR, hover closest to the national average. At the other extreme, Milwaukee, St. Louis and Grand Rapids, MI, remain locked in tight seller’s markets with less than three months of supply.
