Slower demand from buyers has more homes for sale now than at any time since 2019, according to the latest market report from Zillow. With homes lingering on the market and less competition for them, a long-anticipated balance of power between buyers and sellers looks to have finally arrived. As a result of that, Phoenix is among the Top 5 U.S. cities seeing the most home price cuts
Sellers held the upper hand through most of the past five years as demand for homes far outweighed the options available. Sellers now returning to the market in greater numbers, along with a surge in new construction, has helped balance the scales — competition among buyers is lower than any June in Zillow records dating back through 2018. But affordability is still a major challenge.
“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.”
Inventory is still roughly 21% below pre-pandemic averages for June, but that deficit is expected to continue shrinking. Zillow forecasts inventory to approach pre-pandemic levels by the end of the year.
Home value growth is at a stand still and mortgage costs have ticked down ever so slightly from a year ago. But high prices and borrowing costs are still putting up high affordability hurdles for buyers, especially first-timers.
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What it means for buyers and sellers
Buyers have more options to choose from, more time to decide on a house and more bargaining power than in prior years. Home sellers need to reach the broadest set of shoppers, price realistically and set their listing apart from the crowd.
Buyers aren’t feeling rushed in most markets. Listings that sell do so in 19 days — just one day faster than before the pandemic. That’s compared to 15 days in 2024 and 11 in 2023.
Zillow’s market heat index shows the housing market nationwide and in 22 of the 50 largest metropolitan areas are now neutral, where neither buyers nor sellers have the upper hand. That’s compared to 15 markets that were neutral in May and just eight at this time a year ago.
A look at home price cuts
Sellers are still correcting prices at record rates to try and entice buyers. 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, and closing in on an all-time high of 27% from September 2022.
Home price cuts are most common among Sun Belt and Mountain West markets that witnessed massive appreciation early in the pandemic. Home price cuts were most common in Denver (38%), Raleigh (36%), Dallas (36%), Phoenix (35%), and Nashville (35%).
Inventory reaches five-plus-year high
Zillow data shows 1.36 million listings active on the market in June, rising 2.3% from May and up a hefty 17.2% from a year ago. The last time that many houses were for sale was November 2019.
New listings stepped down significantly from May to June, dropping 10.9%. Some of that is likely seasonal – new listings peaked in May in 2018, 2019, and 2024. But some potential sellers are also seeing slower sales in many markets and deciding to hold off.
Sales follow seasonal trend downward
Sales are winding down after a somewhat lackluster home shopping season. Though this June’s newly pending sales are slightly above last year’s, they declined 4.9% from May.
| Metro Area* | Zillow Home Value Index (ZHVI) | ZHVI Year over Year (YoY) | Share of Listings With a Price Cut | Market Favors (Zillow Market Heat Index) | Inventory Change Since Pre- Pandemic | Median Days to Pending | Median Days to Pending since Pre- Pandemic |
| United States | $367,369 | 0.2 % | 26.6 % | Neutral | -20.6 % | 19 | -1 |
| New York, NY | $711,937 | 4.1 % | 15.6 % | Strong Seller | -52.3 % | 26 | -20 |
| Los Angeles, CA | $966,675 | -0.4 % | 23.7 % | Seller | -10.8 % | 22 | 4 |
| Chicago, IL | $343,826 | 3.2 % | 24.3 % | Seller | -51.3 % | 9 | -10 |
| Dallas, TX | $372,023 | -3.7 % | 35.5 % | Neutral | 12.1 % | 29 | 5 |
| Houston, TX | $312,121 | -1.7 % | 31.3 % | Neutral | 10.4 % | 33 | 13 |
| Washington, DC | $584,741 | 1.1 % | 27.1 % | Seller | -25.1 % | 13 | -3 |
| Philadelphia, PA | $384,856 | 3.3 % | 23.7 % | Seller | -47.1 % | 10 | -17 |
| Miami, FL | $476,750 | -3.8 % | 22.5 % | Buyer | 3.8 % | 62 | 21 |
| Atlanta, GA | $386,545 | -2.9 % | 31.1 % | Buyer | 6.7 % | 37 | 24 |
| Boston, MA | $733,508 | 1.4 % | 22.5 % | Seller | -30.1 % | 8 | -2 |
| Phoenix, AZ | $453,381 | -3.5 % | 35.5 % | Neutral | -2.0 % | 40 | 15 |
| San Francisco, CA | $1,139,579 | -3.4 % | 22.4 % | Seller | 14.1 % | 21 | 7 |
| Riverside, CA | $586,520 | -1.5 % | 25.8 % | Seller | -15.6 % | 31 | 10 |
| Detroit, MI | $267,148 | 3.0 % | 24.1 % | Neutral | -31.7 % | 8 | -4 |
| Seattle, WA | $759,789 | -0.4 % | 30.0 % | Neutral | -9.2 % | 12 | 3 |
| Minneapolis, MN | $389,452 | 1.5 % | 24.8 % | Strong Seller | -30.4 % | 18 | -1 |
| San Diego, CA | $935,349 | -2.4 % | 29.6 % | Neutral | -16.8 % | 22 | 2 |
| Tampa, FL | $362,150 | -5.7 % | 35.2 % | Buyer | 22.9 % | 39 | 20 |
| Denver, CO | $586,433 | -2.7 % | 38.3 % | Neutral | 22.7 % | 24 | 16 |
| Baltimore, MD | $402,337 | 1.9 % | 27.1 % | Seller | -42.6 % | 10 | -14 |
| St. Louis, MO | $270,192 | 2.1 % | 23.9 % | Seller | -43.9 % | 6 | -9 |
| Orlando, FL | $389,488 | -3.7 % | 30.2 % | Neutral | 28.0 % | 36 | 20 |
| Charlotte, NC | $388,810 | -1.0 % | 28.6 % | Neutral | 17.8 % | 22 | 11 |
| San Antonio, TX | $284,786 | -3.3 % | 31.4 % | Neutral | 28.4 % | 41 | 9 |
| Portland, OR | $556,346 | -0.7 % | 30.2 % | Seller | -10.1 % | 15 | 4 |
| Sacramento, CA | $584,641 | -1.8 % | 31.8 % | Neutral | -16.3 % | 21 | 9 |
| Pittsburgh, PA | $229,012 | 0.5 % | 26.8 % | Neutral | -39.5 % | 11 | -10 |
| Cincinnati, OH | $301,925 | 2.7 % | 27.9 % | Seller | -32.8 % | 5 | -4 |
| Austin, TX | $444,087 | -5.8 % | 32.8 % | Buyer | 56.8 % | 50 | 36 |
| Las Vegas, NV | $437,655 | 0.9 % | 31.3 % | Neutral | -0.1 % | 32 | 13 |
| Kansas City, MO | $320,503 | 2.0 % | 30.0 % | Seller | -39.8 % | 6 | -7 |
| Columbus, OH | $329,744 | 1.4 % | 31.2 % | Seller | -16.1 % | 6 | 1 |
| Indianapolis, IN | $290,838 | 1.6 % | 33.8 % | Neutral | -9.1 % | 11 | 4 |
| Cleveland, OH | $245,373 | 4.3 % | 23.1 % | Seller | -51.2 % | 7 | -26 |
| San Jose, CA | $1,612,628 | -0.9 % | 22.1 % | Neutral | -5.5 % | 17 | 1 |
| Nashville, TN | $457,836 | -0.1 % | 35.5 % | Neutral | 6.8 % | 28 | 10 |
| Virginia Beach, VA | $364,175 | 1.8 % | 23.6 % | Seller | -43.6 % | 24 | -18 |
| Providence, RI | $508,656 | 3.2 % | 22.4 % | Seller | -54.4 % | 11 | -12 |
| Jacksonville, FL | $353,671 | -3.2 % | 32.4 % | Buyer | 23.5 % | 54 | 25 |
| Milwaukee, WI | $375,631 | 3.1 % | 13.9 % | Seller | -26.1 % | 15 | -18 |
| Oklahoma City, OK | $241,682 | 1.0 % | 29.5 % | Neutral | -7.8 % | 19 | 3 |
| Raleigh, NC | $446,622 | -2.1 % | 36.4 % | Neutral | 9.7 % | 21 | 12 |
| Memphis, TN | $244,607 | -1.0 % | 29.8 % | Neutral | 3.1 % | 22 | 5 |
| Richmond, VA | $387,179 | 1.2 % | 25.2 % | Seller | -36.6 % | 8 | -4 |
| Louisville, KY | $271,837 | 4.2 % | 29.1 % | Neutral | -25.7 % | 7 | -7 |
| New Orleans, LA | $259,497 | -1.1 % | 27.2 % | Buyer | 40.7 % | 41 | 17 |
| Salt Lake City, UT | $561,243 | 1.2 % | 35.2 % | Neutral | 2.6 % | 18 | 8 |
| Hartford, CT | $388,727 | 4.1 % | 16.0 % | Strong Seller | -65.8 % | 6 | -15 |
| Buffalo, NY | $281,309 | 3.1 % | 18.3 % | Strong Seller | -40.1 % | 10 | -5 |
| Birmingham, AL | $256,681 | -0.1 % | 25.0 % | Neutral | -20.0 % | 18 | 3 |
