Months of inventory has eased from 5.38 in September to 4.82 in October, marking the third straight monthly decline. That shift gives sellers a bit more leverage, but we’re still in a more balanced zone than the frenzy years.

Compared with 2024, October is slightly lower (-3.7%), the first month all year where 2025 inventory hasn’t run higher than last year. Still, every 2025 reading remains far below the historic averages.

For buyers, selection is tighter than last month but much better than long-term norms. For sellers, pricing power has improved modestly, especially for well-priced, move‑in‑ready homes.

Supply has clearly turned a corner. Active listings are down from 812 to 741 month‑over‑month, but still slightly above last year and more than double the historic October average. Buyers now have far more choices than normal, even if selection has tightened a bit since September.

Demand is firming. Pending sales dipped from September’s spike (174) to 165, but remain above last year and well above historic norms.

Net effect: We’re shifting from an extreme “buyer power” environment toward a more balanced market. Motivated sellers must still price competitively, but serious buyers are losing some leverage.

Appreciation is picking up again. Month over month, prices rose from $371,036 in September to $375,000 in October, and the 12‑month appreciation rate jumped from 3.2% to 5.14%. That’s the fastest annual gain since mid‑2023.

Compared with 2024, 2025 has been a touch stronger but still far more stable than the boom years of 2020–2022. We’re in a “slow‑and‑steady up” market.

This favors sellers and move‑up buyers: prices are rising but not spiking. Buyers face less panic, but waiting is getting slightly more expensive each month.

Buyers are getting a small but real window of leverage. Prices and price per square foot are up, yet homes are sitting longer, and there are more active listings to choose from. That combo means you can be picky, negotiate on condition and repairs, and still expect modest discounts off asking. Focus on well-priced homes that have been on the market over 30 days; those sellers are the most likely to deal.

Sellers are back in a more rewarding market. Sales volume, total sales, and appreciation are all sharply higher than last year, and buyers are paying closer to list price than before. With fewer new listings coming on, good homes still stand out and move. Price confidently but not aggressively, and be ready for serious buyers who value move-in-ready condition.