Slower demand from home buyers has more homes for sale now than at any time since 2019, according to the latest market report from Zillow.
In June, 1.36 million homes were for sale—the most since November 2019.
Sellers held the upper hand for most of the past five years, as demand for homes far outweighed the available options; however, the balance between buyers and sellers is now shifting, according to Zillow.
Buyers have more options to choose from, more time to decide on a house and more bargaining power than in prior years.
"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 in a statement. "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."
A record-high 26.6% of listings dropped their prices in June to make them more attractive to buyers. Cuts are most common in the Sun Belt and Mountain West.
Read the full report here.
