Signs of a Balanced Housing Market Emerge as Inventory Approaches Six-Year High
- U.S. housing inventory surged 17% year over year in June. Zillow data shows 1.36 million homes were actively for sale in June, the most since November 2019, despite a monthly drop in new listings.
- The housing market has reached the broadest buyer-seller balance in years. Zillow’s market heat index shows that the U.S. overall and 22 of the 50 largest metros are now neutral — nearly triple the number of metros from a year ago. In these areas, buyers and sellers hold roughly equal negotiating power.
- June price cuts set a record as affordability hurdles persist. A record 26.6% of listings saw a price drop in June — the highest for any June since at least 2018 — another sign that the gap between buyers and sellers is shrinking.
With homes lingering on the market and less competition for them, many metrics indicate that a long-anticipated balance of power between buyers and sellers has arrived.
Slower demand from buyers has housing inventory accumulating to levels unseen since 2019, despite a decrease in new sellers.
Buyers in the market have more options to choose from, more time to decide on a house and more bargaining power than in prior years. Sellers are cutting prices at record rates to bring them to the table.
Home value growth is at a standstill, and mortgage costs have ticked down ever so slightly from a year ago. But high prices and elevated mortgage rates are still putting up high affordability hurdles for buyers, especially first-timers.
Inventory
The latest Zillow market data shows 1.36 million listings active on the market in June, rising 2.3% from May and up a hefty 17.2% from a year ago. The last time that many houses were up for sale was November 2019.
Inventory is still 20.6% below pre-pandemic averages for June, but that deficit could shrink. Zillow forecasts inventory will approach pre-pandemic levels by the end of the year.
New listings decreased significantly from May to June, dropping 10.9%. Some of that is likely seasonal; new listings peaked in May in 2018, 2019 and 2024. But potential sellers are also seeing slower sales in many markets and deciding to hold off unless moving is a necessity.
Sales
Sales are winding down after a somewhat lackluster home shopping season. Though this June’s newly pending sales were slightly above last year’s, they declined 4.9% from May.
Competition
Buyers aren’t feeling rushed in most markets. Listings that sell do so in 19 days — just one day fewer than before the pandemic. That’s compared to 15 days in 2024 and 11 in 2023.
Zillow’s market heat index shows that the housing market nationwide and in 22 of the 50 largest metropolitan areas are now neutral, where neither buyers nor sellers have the upper hand. That’s compared to 16 markets that were neutral in May and just eight at this time a year ago.
Sellers are still correcting prices at record rates to try to entice buyers. The share of listings with a price cut reached 26.6% in June, the highest share for any June in Zillow records dating back through 2018, and closing in on an all-time high of 27% from September 2022.
June 2025 Market Report
Home values
- The typical U.S. home value is $367,369.
- The typical monthly mortgage payment, assuming 20% down, is $1,929. That’s 0.6% less than last year, but is up 111.3% since before the pandemic.
- Home values climbed month over month in 31 of the 50 largest metro areas in June. Gains were biggest in Buffalo (1.9%), Cleveland (1.4%), Hartford (1.3%), Detroit (1.2%) and Pittsburgh (1.2%).
- Home values fell, on a monthly basis, in 16 major metro areas. The largest monthly drops were in San Jose (-1.1%), San Francisco (-0.8%), Miami (-0.5%), Austin (-0.5%) and Tampa (-0.4%).
- Home values are up from a year ago in 25 of the 50 largest metro areas. Annual price gains were highest in Cleveland (4.3%), Louisville (4.2%), Hartford (4.1%), New York (4.1%) and Philadelphia (3.3%).
- Home values are down from a year ago in 25 major metro areas. The largest drops were in Austin (-5.8%), Tampa (-5.7%), Miami (-3.8%), Dallas (-3.7%) and Orlando (-3.7%).
Inventory and new listings
- New listings decreased by 10.9% month over month in June.
- New listings increased by 1.4% this month compared to last year.
- New listings are 23.7% lower than pre-pandemic levels.
- Total inventory (the number of listings active at any time during the month) in June increased by 2.3% from last month.
- The median age of inventory (the typical time since the initial list date for active for-sale listings) is 54 days.
- There were 17.2% more listings active in June compared to last year.
- Inventory levels are 20.6% lower than pre-pandemic levels for the month.
Price cuts and share sold above list price
- 26.6% of listings in June had a price cut, a high for June in Zillow records dating back through 2018. That’s up from 25.8% in May and 24.4% a year ago.
- 31.4% of homes sold above their list price in May. That compares to 30.1% in April and 35.1% one year ago.
Newly pending sales
- Newly pending listings decreased by 4.9% in June from the prior month.
- Newly pending listings increased by 0.9% from last year.
- Median days to pending (the typical time since initial list date for homes that went under contract in a month) was at 19 days in June, up two days since the previous month.
- Median days to pending increased by four days from last year.
Market heat index
- Zillow’s market heat index shows that the nation is currently a neutral market.
- The strongest sellers markets in the country are Buffalo, Hartford, New York City, Minneapolis and Providence.
- The strongest buyers markets in the country are Miami, New Orleans, Jacksonville, Austin and Tampa.
Rents
- Asking rents increased by 0.3% month over month in June. The pre-pandemic average for this time of year was 0.7%.
- Rents are now up 2.9% from last year.
- Rents have fallen, on a monthly basis, in six major metro areas. The largest monthly drops were in Houston (-0.4%), Tampa (-0.4%), New Orleans (-0.2%), Phoenix (-0.2%) and San Antonio (-0.1%).
- Rents are up from last year in 46 of the 50 largest metro areas. Annual rent increases were highest in Providence (6.2%), Chicago (6%), Indianapolis (5.4%), Cleveland (5.1%) and Birmingham (4.9%).