For the first time in years, theres a growing balance between buyers and sellers
of ConsumerAffairsJuly 22, 2025
-
1.36 million homes were for sale in June, the most since November 2019.
-
The market is balanced or in buyers’ favor in 28 of the 50 largest US metros.
-
A record-high 26.6% of listings dropped prices in June; cuts are most common in the Sun Belt and Mountain West.
Since early in the COVID-19 pandemic, homebuyers have been waiting for this moment. Zillows latest market report suggests the U.S. housing market is showing signs of a long-awaited rebalancing, giving buyers more leverage.
For most of 2025, buyers have been playing hard to get. Thats resulted in a spike in the number of available homes for sale, causing more sellers to lower their prices.
This marks a significant turn after years of seller dominance, ushering in what Zillow calls a “neutral” market, where neither buyers nor sellers have the upper hand.
The shift to a ‘neutral’ market is significant, Kara Ng, Zillows senior economist, said in a statement. But it shouldn’t be mistaken for a universally cool or easy market for buyers. The affordability crisis remains a high barrier to entry, especially for first-time buyers.
More homes, less competition
In June, active listings hit 1.36 million the highest number since November 2019 reflecting a 17.2% increase from a year ago. A slowdown in buyer activity has reduced competition and allowed homes to linger longer on the market. Median time to pending sale is now 19 days, up from 11 days in June 2023.
Still, affordability is keeping many potential buyers on the sidelines because mortgage rates are in the normal range historically speaking, but prices have hovered near record highs. Despite a slight dip in mortgage costs, home prices and borrowing rates remain stubbornly high. Inventory, though improving, is still 21% below Junes pre-pandemic averages. Zillow said it anticipates this shortfall will continue to shrink, potentially closing the gap by years end.
Cutting prices at record rates
Price cuts have become increasingly common, especially in overheated markets in the Sun Belt and Mountain West. Nationwide, 26.6% of listings saw price reductions in June the highest June share since Zillow began tracking in 2018. In cities like Denver (38%), Raleigh (36%), and Dallas (36%), more than a third of sellers lowered their asking prices to attract attention.
Sellers hoping to move their homes in this new market dynamic are being advised to price competitively and differentiate their listings. With more options and slower sales, buyers are under less pressure and more willing to wait for the right deal.
#interesting #U.S #housing #market