Zillow: Inventory Hits 5-Year High

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Zillow, Seattle, reported that 1.36 million homes were for sale in June, the most since November 2019.

That’s up 2.3% from May and 17.2% year-over-year.

However, the inventory is still about 21% below pre-pandemic averages for June. Zillow forecasts inventory to near pre-pandemic levels by the end of the year.

And, new listings dropped from May to June, partly due to seasonality. Zillow noted that drop may also be due to potential sellers seeing a slower market and deciding to wait it out.

Overall, the balance between buyers and sellers is normalizing somewhat after years in which sellers held the upper hand. Competition among buyers is lower than any June in Zillow records going back to 2018, but affordability remains a serious challenge for the market.

Indicating some improved balance: listings are selling in 19 days, compared with 20 days in the pre-pandemic market. They were selling in 15 days in 2024 and just 11 days in 2023.

Sellers are correcting prices at record rates to attract buyers. More than a quarter–26.6% of listings–saw a price cut in June, near the all-time high of 27% in September 2022.

“The shift to a ‘neutral’ market is significant, but it shouldn’t be mistaken for a universally cool or easy market for buyers,” Zillow Senior Economist Kara Ng said. “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.”