Key Details:
- Zillow’s latest update shows U.S. housing inventory hit 1.36 million in June, the highest level since November 2019 and up 17.2% year over year.
- A record-high 26.6% of listings had price cuts, with Denver, Raleigh, and Dallas topping the list.
- Homes are now taking a median of 19 days to sell, up from just 11 days in June 2023.
If your buyers feel like they’re finally catching a break, or your sellers are wondering why their home hasn’t moved, it’s not just them. According to new Zillow research, housing inventory just hit its highest level in more than five years, and price cuts are spiking across some of the hottest U.S. markets.
For the first time in a long time, the market is no longer tilted squarely in favor of sellers. But it’s not an easy one for buyers, either.
Read on for the big takeaways.
Inventory Reaches a Five-Year High
As of June 2025, 1.36 million homes were listed for sale. That’s a 2.3% increase from May and a 17.2% jump compared to June 2024.
It’s also the highest number of active listings since November 2019.
Even though inventory is still about 21% below pre-pandemic averages for June, Zillow expects that gap to keep shrinking. If the trend continues, active listings could return to pre-2020 levels by the end of this year.
More Price Cuts, Especially in These Five Markets
With fewer buyers competing for listings, more sellers are cutting prices to stay competitive. In June, 26.6% of active listings had a price reduction. That’s the highest share for any June since Zillow began tracking this metric in 2018 and just shy of the all-time record of 27% in September 2022.
The biggest price drops are showing up in the same Sun Belt and Mountain West markets that saw the fastest price growth during the pandemic.
These five metros had the highest share of price cuts in June:
- Denver: 38%
- Raleigh: 36%
- Dallas: 36%
- Phoenix: 35%
- Nashville: 35%
A Neutral Market, Not a Cool One
Zillow’s heat index shows that the U.S. housing market is now “neutral,” meaning neither buyers nor sellers have a clear advantage. That’s also true in 22 of the 50 largest U.S. metros. For context, only 15 metros were considered neutral in May and just eight this time last year.
But neutral doesn’t mean easy. According to Zillow Senior Economist Kara Ng:
“The shift to a ‘neutral’ market is significant, but it shouldn’t be mistaken for a universally cool or easy market for buyers. While negotiating power is more balanced, the affordability crisis remains a high barrier to entry, especially for first-time buyers. Until we see a more meaningful improvement in purchasing power, this newfound balance will primarily benefit more well-off buyers.”
Sales Are Slowing, and Listings Are Lingering
June’s newly pending sales were up slightly compared to last year but fell 4.9% from May. Some of that dip is seasonal. Historically, new listings tend to peak in May and taper off in June.
Even homes that do sell are taking longer to go under contract. The median time on market in June was 19 days. That’s just one day faster than the pre-pandemic average but slower than the 15-day median in June 2024 and the 11-day median in June 2023.
What This Means for Agents
More listings, slower sales, and rising price cuts point to a shift in strategy for both sides of the deal. Buyers aren’t rushing to submit offers, and sellers can’t rely on wishful pricing.
Key takeaways:
- Help buyers understand their new negotiating power, but set realistic expectations about affordability.
- Advise sellers to price competitively and prepare their listings to stand out in a growing pool of options.
- Use market data to build trust and confidence with clients who are navigating mixed signals and conflicting headlines.
There’s still plenty of opportunity on both sides of the table. But agents who can communicate what’s really happening in the market, and can back it up with numbers, will be the ones winning trust and closing deals.
