Two new data reports are offering a rocky view of today’s home selling market.
Zillow (NASDAQ: Z, ZG) reports 1.36 million homes were for sale in June, the most since November 2019, with 28 of the nation’s largest metros being defined as either balanced or in buyers’ favor. Inventory is roughly 21% below pre-pandemic averages for June, and Zillow added inventory could approach pre-pandemic levels by the end of the year.
Zillow also determined the share of listings with a price cut reached 26.6% in June, the highest share for any June in Zillow records that date back through 2018. The all-time high for this record was 27% from September 2022. New listings fell 10.9% from May to June.
However, high prices and borrowing costs are still frustrating buyers seeking affordable opportunities.
“The shift to a ‘neutral’ market is significant, but it shouldn’t be mistaken for a universally cool or easy market for buyers,” said Kara Ng, Zillow senior economist. “While negotiating power is more balanced, the affordability crisis remains a high barrier to entry, especially for first-time buyers. Until we see a more meaningful improvement in purchasing power, this newfound balance will primarily benefit more well-off buyers.”
Separately, Redfin reported new listings of homes for sale fell 3.2% in June to the lowest seasonally adjusted level since October 2023. On a year-over-year basis, new listings were down 3.4% for the first annual decline since October 2023.
Redfin reported active listings—the total number of homes for sale—fell 0.3% month-over-month in June, the first decline since July 2023 on a seasonally-adjusted basis. Still, active listings were up 13.3% from a year earlier, sitting near the highest level in five years.
“The balance of power in the housing market has shifted toward buyers because listings have piled up and demand has slowed down,” said Redfin Senior Economist Asad Khan. “Prospective sellers are feeling discouraged by this new reality. Some are reacting by staying put or renting their homes out instead of selling—especially if they’re at risk of taking a haircut.”
Real estate is strictly a local market and articles like this are no help to a prospective buyer. Buyers should place their confidence in a knowledgeable local Realtor.
Agreed, John Roach Broker
DROP THE PRICES!!!! There are so many houses listed it does not matter that new listings are low.
I think the standoff between buyers and sellers is very real and I think the seller side wins out. With well over half in sub-5% mortgages they can rent their home and cash flow or sit in the low rate loan and hold out for better times. Sellers are not being forced to sell with adjusting mortgages or significant job loss happening. I expect them to stay stubborn. Relief will come with rates moving lower, when? Who knows, I have stopped guessing! I have been wrong for at least 9 months now!