2025 3rd Quarter Housing Market Update

🔢 Market Snapshot (as of July 1, 2025 vs. July 1, 2024)

• Active Listings (excl. UCB/CCBS):
  25,683 — up 42% YoY
  (But down 3.4% from last month)
  (Down 3.5% from last month)
• Pending Listings:
  4,523 — up 2.6% YoY
  (Down 1.6% from last month)
• Under Contract (Pending + UCB/CCBS):
  7,702 — up 4.1% YoY
  (Down 2.9% from last month)
• Monthly Sales:
  6,629 — up 4.9% YoY
  (Down 6.8% from June)
• Average $/Sq.Ft.:
  $293.08 — down 0.8% YoY
  (Down 2.4% from $300.16 last month)
• Median Sales Price:
  $450,000 — unchanged from last year
  (Down 1.1% from $455,000 last month)

---

📉 Price Trends & Market Dynamics

Closed prices have retreated for the second month in a row, bringing average price per square foot below both last month’s and last year’s levels. The median price held steady compared to last July, but we’re seeing signs of softness in seller expectations.

While June’s increase in sales volume (up 4.9%) might seem like a win, it aligns with an extra business day this year—so it’s more of a statistical tie. Still, listings under contract are slightly up year-over-year, driven by a modest dip in mortgage rates and more competitive list pricing.

---

🏘️ Inventory & Seller Behavior

We’re entering Q3 with slightly less supply, thanks to a wave of cancellations and expired listings at the end of June. While that’s helping balance the market, it’s not necessarily a sign of strength. In many cases, sellers have paused or pivoted—some converting listings into rentals. This temporary inventory drop may reverse come Q4.

---

🔮 What to Expect Next

• High-end properties remain resilient but see slower summer activity.
• Entry-level and mid-range markets continue to struggle with affordability and competition.
• Prices are expected to stay flat or decline slightly through the next 90 days.
• If mortgage rates trend back up toward 7%, buyer activity could stall.
• If rates drop? We may see a rebound in demand and a healthier Q4.

---

Bottom Line:
Sellers are recalibrating, buyers are cautiously optimistic, and the market continues to adjust toward greater affordability. With interest rates and pricing trends in flux, strategic pricing and marketing are more critical than ever.