The US housing market saw a surge in inventory last month, with sellers putting up more homes than were bought, according to Zillow. This resulted in a 9% increase in housing inventory compared to the same period last year.
Despite the increase in available homes, buyers remain hesitant to enter the market due to affordability concerns. The number of pending home sales remained flat compared to last year’s levels, with just 265,000 listings transitioning into a pending sale in March.
However, sellers are starting to adjust their prices, with 23% of listings seeing a price reduction over the past month. This is the largest share of homes with a price cut since 2018. The shift could prompt buyers who are being held back by affordability challenges to enter the market.
Zillow’s Market Heat Index, which measures whether the housing market is more favorable to buyers or sellers, shifted from “neutral” territory to “sellers market” territory in March. This marks a significant change in the market’s dynamics and could signal a shift towards buyer-friendly conditions.
Source: https://www.businessinsider.com/housing-market-buying-a-home-inventory-sellers-market-zillow-listing-2025-4