T
he housing market is showing signs of recovery, with home sales increasing in July 2025. According to the National Association of REALTORS (NAR) Existing-Home Sales Report, this uptick indicates a market that's slowly finding its footing after a period of adjustment. The report suggests that buyers and sellers alike are benefiting from more favorable conditions.

    The NAR report highlights several key trends:

    * A 2% increase in sales, with a seasonally adjusted annual rate of 4.01 million existing-home sales.

    * A 0.6% increase in unsold inventory, reaching 1.55 million units and translating to a 4.6-month supply.

    * A 0.2% increase in the median existing-home price year-over-year to $422,400.

    These numbers indicate that buyers have more choices and less competition, making it easier for them to find their dream home without feeling rushed. The stability of prices is also a welcome sign, especially when considering wage growth.

    NAR Chief Economist Lawrence Yun attributes this change to improvements in housing affordability, with wage growth outpacing home price growth. This shift in buyer leverage means that buyers can negotiate better prices and have more confidence in the market.

    Regional variations show that not all areas experienced the same level of growth, but the South and Northeast saw significant gains. The Midwest showed year-over-year improvement despite a slight dip month-over-month, while the West experienced a year-over-year decline in sales.

    Other trends worth noting include:

    * Homes staying on the market for an average of 28 days, up from 27 days last month and 24 days in July 2024.

    * A decrease in first-time homebuyers to 28%, but still a significant portion of the market.

    * An increase in cash sales (31%) and transactions by individual investors or second-home buyers (20%).

    * Distressed sales remaining low at just 2%.

    For buyers, this report is encouraging, with increased inventory and stabilizing prices making it easier to find a home that fits their needs and budget. For sellers, while bidding wars might be less common, a well-priced and presented home will still attract serious buyers.

    Looking ahead, the housing market's recovery offers a hopeful glimpse into the future, with underlying trends like wage growth outpacing home prices and increasing inventory being strong positives.