Some home buyers opting to wait amid uncertainty
- Newly pending listing sales in April fell 2.5% compared to a year ago, despite lower average mortgage rates.
- Sellers are more enthusiastic; new listings rose 7.6% over last year.
- Mortgage payments are 1.3% smaller than last year due to lower rates and moderating home value growth.
- Competition among buyers is fierce in the Northeast and more relaxed in the South.
Activity in the housing market is warming up with the weather. Newly pending sales ticked up 3.4% from March to April, as new listings rose 9.8%. However, economic uncertainty seems to have disrupted the home shopping season, resulting in slower competition among buyers compared to previous springs.
In April, many households didn’t know what was next for their jobs, investment portfolios, or budgets. As a result, some potential buyers sat on the sidelines, awaiting further clarity before making significant purchases — including homes. Despite lower mortgage rates this year that have dropped the cost of a mortgage payment by 1.3%, newly pending sales are down compared to last April, by 2.5%.
Sellers, on the other hand, have a bit more financial stability and equity to put into their next property, allowing them to weather economic fluctuations. New listings from sellers rose 7.6% over last year, far outpacing sales nationwide. New listings rose annually in 44 of the 50 major metros.
With sales lagging behind the flow of sellers returning on the market, inventory is rising. There were 1.2 million homes for sale in April, 19.6% higher than a year ago, giving buyers more options with less competition than last year. There’s more inventory on the market nationwide than any time since August of 2020.
Sellers are increasingly using price cuts to bridge the gap to buyers. Nearly 25% of listings on Zillow received a price cut in April, a record-high for this time of year in data that reaches back through 2018. Home values are rising at a more moderate pace than previous April cycles.
Of course, competition varies regionally. The strongest buyer’s markets are on the West Coast and Northeastern US, where geographic constraints and strict building regulations have produced severe housing shortages. In contrast, builders have contributed to an inventory recovery in the Southeastern US, producing markets where buyers hold the negotiating power.
Though the spring housing market started more sluggishly than desired, activity is underway, with improved options for buyers, steady price growth, and better affordability than last year; all positive indicators for the months ahead.
April 2025 Market Report
Home values
- The typical U.S. home value is $365,887.
- The typical monthly mortgage payment, assuming 20% down, is $1,903.
- Home values climbed month over month in 48 of the 50 largest metro areas in April. Gains were biggest in Milwaukee (1.7%), Hartford (1.3%), Cleveland (1.3%), Detroit (1.3%), and Pittsburgh (1.3%).
- Home values fell, on a monthly basis, in one major metro area: Miami (-0.1%). Tampa held steady (0%), and the smallest monthly gains were in Orlando (0.1%), San Diego (0.3%), and Phoenix (0.3%).
- Home values are up from year-ago levels in 30 of the 50 largest metro areas. Annual price gains are highest in Cleveland (4.7%), New York (4.4%), Hartford (4.4%), Louisville (4.4%), and Providence (4.3%).
- Home values are down from year-ago levels in 20 major metro areas. The largest drops were in Austin (-5.1%), Tampa (-5%), San Antonio (-3.2%), Dallas (-3%), and Phoenix (-2.8%).
- The typical mortgage payment is down 1.3% from last year and has increased by 110.1% since pre-pandemic.
Inventory and new listings
- New listings increased by 9.8% month over month in April.
- New listings increased by 7.6% this month compared to last year.
- New listings are 19% lower than pre-pandemic levels.
- Total inventory (the number of listings active at any time during the month) in April increased by 6.7% from last month.
- There were 19.6% more listings active in April compared to last year.
- Inventory levels are 22.9% lower than pre-pandemic levels for the month.
- The median age of inventory, the typical time since the initial list date for active for-sale listings, was 48 days.
Price cuts and share sold above list
- 24.5% of listings in April had a price cut. That’s compared to 23.5% in March and 22.4% in April of 2024.
- 27.0% of homes sold above their list price in March. That’s up from 24.6% in February but down from 30.3% in March of 2024.
Newly pending sales
- Newly pending listings increased by 3.4% in April from the prior month.
- Newly pending listings decreased by 2.5% from last year.
- Median days to pending, the typical time since initial list date for homes that went under contract in a month, is at 16 days in April, down one day since last month.
- Median days to pending increased by three days from last year.
Market heat index
- Zillow’s market heat index shows the nation is currently a seller’s market.
- The strongest sellers markets in the country are Buffalo, Hartford, Boston, Minneapolis, and New York.
- The only buyers markets in the country are Miami, New Orleans, Jacksonville, and Tampa.
Rents
- Asking rents increased by 0.5% month over month in April. The pre-pandemic average for this time of year is 0.7%.
- Rents are now up 3.4% from last year.
- Rents fell, on a monthly basis, in one major metro area: Los Angeles (-0.1%). They rose the least in Tampa (0.1%), Miami (0.1%), Philadelphia (0.1%), and Oklahoma City (0.1%).
- Rents are up from year-ago levels in 47 of the 50 largest metro areas. Annual rent increases are highest in Hartford (6%), Cleveland (6%), Chicago (5.9%), Providence (5.3%), and Kansas City (5.3%).