AS YOUR TRUSTED REAL ESTATE ADVISOR, I HAVE VALUABLE AND UNIQUE INFORMATION ABOUT THE PULSE OF THE MARKET BASED ON REAL-TIME DATA. FOR EXAMPLE,
One of the most important dynamics in the housing market right now isn’t brand-new supply; it’s the return of homes that withdrew last fall and are re-listing this winter. During the second half of 2025, many sellers chose to step aside rather than cut prices. Even with winter weather slowing activity, that re-list process is underway, with roughly 75,000 homes back on the market, about 11% of active inventory.
These re-listings aren’t simply added supply. Most appear to be owner-occupiers, households looking to sell and buy, so each re-listing represents potential demand as well as inventory. That distinction matters, and it’s showing up in the data. Weekly pending home sales continue to run 5–8% above last year, even through storms and seasonal slowdowns, suggesting buyers are keeping pace as sellers return.
At the same time, inventory growth is compressing. While total supply remains higher than a year ago, it is no longer accelerating the way it did in 2024 and early 2025, and in some markets inventory is already tightening. This creates an environment where sales activity can improve without generating upward pressure on prices. Sellers coming back to market are pricing more realistically, reinforcing the defining pattern of this cycle: transaction volume can rise while prices remain flat or slightly lower, especially as buyers stay highly price sensitive.
HERE ARE A FEW INSIGHTS THAT STOOD OUT:
Inventory remains elevated, but the type of supply matters more than the headline count. There are roughly 700,000 single-family homes on the market nationwide, and a significant portion of that total—about 75,000 homes, or roughly 11% of active inventory—are re-listings from sellers who pulled their homes last fall and are now returning. Even with winter weather temporarily slowing activity, this helps explain why inventory is higher than last year without accelerating sharply. Supply is rebuilding, but in a controlled way, driven by returning sellers rather than a flood of new listings.
Just as important, these re-listings are being met by demand. Weekly pending home sales remain 5–8% above last year’s pace, even through storms and seasonal slowdowns. That supports the idea that many re-list sellers are also buyers—move-up, move-down, or relocating households—so re-listings represent potential transactions on both sides of the market, not just added supply.
Pricing pressure remains a defining feature. More than one-third of homes on the market have taken a price reduction, and asking price per square foot is running about 1.5% below last year nationally. These are leading indicators suggesting that even as sales activity improves, price appreciation is unlikely in the near term. Buyers remain highly price sensitive, and sellers re-entering the market are adjusting expectations accordingly.
Takeaway: The return of last year’s withdrawals is adding supply, but demand is keeping pace. Inventory is ample but not surging, allowing sales to improve without pushing prices higher. In this environment, strategy matters. Leveraging Compass’s 3-Phased Marketing Strategy, including Private Exclusives and Coming Soon, allows sellers to test real demand, fine-tune pricing, and position ahead of broader spring inventory rather than competing once supply rebuilds.
Have questions about what this means for your neighborhood or home plans? Reach out to our team today. We are always here to help you navigate the market with clarity and confidence.
