May Market Report: 5 Stats That Explain This Unusual Shopping Season

April was riddled with uncertainty. As a result, the start of the shopping season looks a lot different in 2025 than years past.

“April may feel a bit like a lost opportunity. Despite improved affordability and improved availability for homes, potential buyers sat on the sidelines,” says Zillow Senior Economist Kara Ng. “Many households didn’t know what was next for their jobs, investment portfolios, or budgets. But if we get policy clarity, which tentatively looks to be the case, a buyer-friendly environment could kick off a stronger season in months ahead.”

Here are the latest trends your clients should know.

1. A record 25% of listings received a price cut

This is the highest share of homes showing a price cut since Zillow began tracking the data in 2018. Inventory is up nearly 20% compared to last year, which indicates that sellers are adjusting their expectations to match the current market conditions. For agents, it's crucial to set a realistic price from the start. Encourage sellers to be flexible and open to negotiations. Highlight the unique features of the property to attract buyers and justify the price.

2. More than a quarter of homes sold above list price

Even though many potential sellers cut their price, 27% of listings are still selling above list. In a competitive market like this, homes that are priced right and marketed well can often sell for more. For sellers, tools like Showcase can help their property stand out online from all the other inventory. For buyers, it's still important to be prepared to pay a premium for the right property.

Use Zillow's free dashboard tools to access your market's latest data.

3. The typical home went pending in 16 days

That’s three days more than last year, but still a healthy turnaround for homes compared to pre-pandemic levels. Buyers have a tad more time to consider their options, but agents may still want to advise clients to act swiftly and make strong offers. Home loan pre-approval and bigger earnest money deposits can make a difference in a competitive market.

4. The typical mortgage payment dropped 1.3% from last year

This reduction can make homeownership more affordable for buyers, but based on the last three years, it’s still incredibly challenging to time the market. Agents should emphasize this point to first-time buyers and those looking to upgrade. Lower mortgage payments can increase buying power, but buyers and sellers should not plan their life around mortgage rate forecasts. While there are some encouraging signs regarding the future of tariffs, the outcome and its impact on markets is inherently hard to predict.  

“Peak policy uncertainty in April probably played a role in both sellers and buyers waiting and seeing,” Ng says.

5. The Northeast is the hottest region

The Northeast is the hottest region of the country in terms of home sales. Competition among buyers is fierce, driving up prices and reducing inventory in places like Boston, and Buffalo. Agents in this region should focus on building a strong network of contacts and staying informed about new listings. In contrast, builders have contributed to an inventory recovery in the Southeast, where buyers hold the negotiating power in markets like Miami and New Orleans.