While new listings grew 7.6% year-on-year in April, newly pending sales slipped 2.5% compared to the same period in 2024, despite slightly lower mortgage rates.
Economic jitters appear to have muted the start of the selling season, with households uncertain about job security, investments, and budgets.
“Improved availability and affordability could spark a rebound in the coming months,” said Zillow senior economist Kara Ng, but for now, sellers are outpacing buyers.
Monthly mortgage payments are down 1.3% from April 2024 thanks to easing rates and slower home value growth.
However, nearly one in four listings had a price cut last month — the highest proportion seen for April since at least 2018 — as vendors respond to subdued buyer demand.
Nationwide inventory rose nearly 20% year-on-year, reaching its highest level since August 2020, giving buyers more choice and slightly more time, with the median time to contract now 16 days (up from 13 days last year).
Regional differences remain stark: sellers still hold the advantage in markets like Boston, Hartford, and Buffalo, while buyers have more leverage in southern cities such as Tampa, Jacksonville and Miami, where increased construction and rising insurance costs have cooled competition.
Meanwhile, affordability pressures are keeping many renters out of the buying pool.
Zillow’s Rental Market Report shows renters now need an annual income of around US$80,000 (approx. AUD$121,000) to afford a typical rental, with that figure exceeding US$100,000 (approx. AUD$151,000) in eight major metros.
The median age of renters has climbed to 42, up from 39 in 2023, reflecting the delayed transition into homeownership.