Rising Inventory Alert: Strategies for Borrowers and Agents to Secure Affordable Financing in a Shifting Market

I'm Mike Nelson, owner of Efficient Lending, Inc. (NMLS: 1876539), where we specialize in residential mortgages across these states. I thrive on those phone conversations that build genuine relationships, focusing on honesty, integrity, and explaining the nuances of low-cost financing tailored to your unique needs. Whether you're a borrower building generational wealth or an agent partnering to close deals, let's explore the latest trends and strategies to turn this buyer-friendly market into lasting success.

The Inventory Surge: What's Happening in CO, TX, and FL?

Nationally, active listings hit 1.55 million in July 2025, marking the 21st straight month of growth and a 24.8% increase year-over-year. Twelve states, including Colorado and Florida, now exceed pre-pandemic 2019 levels, with Texas not far behind.

Breaking it down by state:

• Colorado: Active listings reached 33,287 in July, up 22.6% from the prior month and 32% year-over-year in some metrics, signaling a firm shift to a buyer's market. In areas like Colorado Springs, inventory jumped 29% year-over-year to 4,227 homes.
• Texas: Inventory ballooned 24% year-over-year in July, with big metros like Dallas, Houston, Austin, and San Antonio seeing record highs and active listings up 6% month-over-month. This buildup is creating more competition among sellers.
• Florida: Listings surged 24% year-over-year, with homes taking 53 days to sell and inventory levels well above pre-2020 norms in many areas. Southwest Florida and other regions are adjusting to a higher supply.

Paired with mortgage rates around 6.5% as of late August—down slightly from earlier peaks but expected to hover there into year-end—this inventory rise is opening doors for affordability. Home prices nationally grew just 0.2-0.3% year-over-year, with softening or declines in key metros across these states, like Austin's negative growth or Florida's falling values in some spots.

Why This Matters for Borrowers and Agents

Opportunities abound in a market with rising inventory, but so do challenges. Borrowers who hesitated due to high rates now have more choices and leverage for better deals, but they must navigate financing wisely to avoid overpaying long-term. Agents, meanwhile, can differentiate by educating clients on these shifts, closing faster amid slower sales (national growth at +0.2% YoY), and building trust through transparent partnerships. For both, the focus is on long-term wealth: A smart mortgage in this environment can accelerate equity building and create generational legacies, turning market uncertainty into enduring value.

Strategies for Borrowers: Capitalizing on the Shift

As a borrower, this rising inventory empowers you to shop more intelligently and secure financing that fits your life. Here are key strategies, drawn from current trends:

1. Explore Low-Down-Payment Options Early: With more homes available, prioritize programs like conventional loans at 3% down or FHA for first-timers. Consider USDA zero-down loans in rural Texas or Colorado to minimize upfront costs. Calculate true affordability—factor in rates around 6.5%—and get pre-approved to strengthen offers in competitive spots.
2. Negotiate Aggressively with Data: Use inventory stats to bid below asking, especially in softening markets like Florida's negative-price areas or Texas metros with record supply. Ask for seller concessions like rate buydowns to lower your effective rate, potentially saving thousands.
3. Focus on Long-Term Equity Building: Look beyond monthly payments to how a tailored, low-cost mortgage builds wealth. In stabilizing prices (e.g., Colorado's flattening values), opt for fixed-rate loans to lock in predictability and grow equity faster. Discuss nuances like avoiding PMI pitfalls during a phone consult to ensure it aligns with your legacy goals.
4. Time Your Move with Rate Trends: With rates dipping slightly, consider locking now if buying soon, or refinance later if inventory keeps rising. Educate yourself on ARMs for short-term savings if rates fall further.

Strategies for Agents: Guiding Clients to Success

Agents, empower your borrowers by leveraging this market to close deals efficiently and foster loyalty. Here's how:

1. Educate on Financing Nuances: Share inventory data to highlight buyer leverage, then connect clients to lenders for quick pre-approvals. Use scripts like: "With 24% more listings in Florida, we can negotiate credits to make your low-down-payment loan even more affordable."
2. Collaborate for Faster Closings: Partner with transparent lenders who offer phone-based insights on custom options, like second mortgages or equity strategies. In Texas's surging inventory, emphasize speed: "How can we guarantee approval to outpace competition?"
3. Shift Pricing and Negotiation Tactics: Advise sellers to price competitively upfront to avoid cuts, while arming buyers with regional trends (e.g., Denver homes below asking) for strong bids. Build trust by focusing on wealth-building: Explain how a fitting mortgage turns a purchase into a legacy asset.
4. Adapt to Buyer Hesitation: In a slower market, use tools like virtual tours and data-driven conversations to inspire action, focusing on long-term benefits amid stable rates.

By aligning these strategies, borrowers and agents can thrive, creating honest, lasting relationships.

Let's Partner for Your Success

I'm passionate about building friendships through integrity, whether you're a borrower ready to discuss your options or an agent seeking a reliable lender partner. Give me a call; I love delving into the details over the phone.

Tune into my podcast, Mosaic: The Stories of Real Estate, for more on generational wealth .

Head to efficientlending.net for quotes, tools, or to connect. Together, we'll navigate this market toward lasting opportunities.

What strategies are you using? Share below or reach out—let's chat.

Mike Nelson, CEO - Efficient Lending, Inc