Nearly one-quarter of listings (24.5%) received a price cut during June, according to new data from Zillow (NASDAQ:Z, ZG). Last month’s share marked the highest rate at this time of year since Zillow began tracking this data in 2018.
Zillow also noted that home value growth has slowed as inventory rises. The total number of homes on the market has risen throughout the year, with a 4% uptick from May to June to reach a level that is nearly 23% above last year’s low level – although inventory levels are still about 33% below pre-pandemic averages. Inventory is higher year-over-year in 48 of the 50 largest metropolitan areas — New York and Cleveland are the exceptions — while inventory is also up month-over-month in all but five markets.
At the same time, annual appreciation is a reasonable 3.2% nationally, down from a 2024 peak of 4.6% in March. Monthly growth slowed to 0.6%, marking the most lethargic June appreciation since 2011. Zillow forecasts home values to rise just 1% nationally through June 2025.
“A growing segment of homes that aren’t competitively priced or well marketed are lingering on the market. Sellers are increasingly cutting prices to entice buyers struggling with affordability,” said Skylar Olsen, chief economist of Zillow. “For years, the housing market has been defined by fast sales and few options. Now it’s starting to look more like it did before the pandemic in terms of competition, if not costs. As the wait for mortgage rate relief drags on, slower price growth and even dips in some areas will help buyers catch up on saving for a down payment.”
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