More properties are coming on the market than being sold, according to a new data report from Zillow (NASDAQ: Z, ZG).
During April, Zillow found the quantity of new listings were up 9.8% from March and up 7.6% from one year earlier, outpacing sales nationwide. New listings were up year-over-year in 44 of the 50 largest metros. Inventory nationwide is up nearly 20% from one year ago, reaching levels not seen since August 2020, and in 16 metros today’s inventory surpassed pre-pandemic levels, particularly in the South and some Western areas.
However, Zillow noted that pending sales were down 2.5% year-over-year in April, although they were also up 3.5% from the prior month. Nearly 25% of Zillow listings underwent a price cut in April — the highest share for this time of year since at least 2018. And homes are going under contract in a median of 16 days, three days slower than last year and six days slower than in 2023.
Zillow Senior Economist Kara Ng observed, “Economic anxieties disrupted the start of the home shopping season. In April, many households didn’t know what was next for their jobs, investment portfolios or budgets. This kept some buyers on the sidelines, waiting for clearer economic signals before making major purchases like a home. As uncertainty has since eased, improved availability and affordability in homes could lead to a rebound in the coming months.”
It’s called a correction. Drop the prices.