Key facts
- US housing demand shows consistent year-over-year growth in pending sales across all regions.
- National housing inventory is stable, but regional supply trends are diverging significantly.
- The Northeast and Midwest are adding supply, while the South and West are seeing inventory tighten.
- The South accounts for over half of the nation's active listings and has the highest rate of price cuts.
- The West is showing signs of a tightening market with declining inventory and fewer seller concessions.
The US housing market is demonstrating steady demand nationwide, with pending sales showing positive year-over-year growth across all major regions for the week ending June 20, despite mortgage rates remaining elevated near 6.6%. This resilience suggests buyers are still active even with higher financing costs.
The national inventory picture appears stable on the surface, with active listings up only 0.25% from a year ago. However, this national figure masks significant regional divergence. The Northeast and Midwest, historically supply-constrained, are experiencing inventory growth of +7.2% and +5.5% respectively. Conversely, the South and West, which had been working through supply corrections, are now seeing inventory shrink, with declines of -0.8% and -2.8% year-over-year.
The South plays a crucial role in the national market, accounting for 55.3% of all active listings. This region continues to see positive demand growth (+6.9%), but it also leads in price cuts at 39.4%, indicating ongoing affordability pressures. The Northeast and Midwest, while adding supply, still face tight inventory conditions, contributing to lower price-cut rates.
The West, despite shrinking inventory (-2.8%), shows improving fundamentals with pending sales up 8.4% and a decrease in price cuts. This suggests the region may be further along in its market correction than anticipated.
Looking ahead to the second half of 2026, key questions remain about sustaining demand with mortgage rates above 6.5% and how the diverging regional inventory trends will shape the national market.