Homebuyers choosing to hold back from entering the market might be creating the very market that they would benefit from, per the latest findings from Zillow.
The portal’s latest report finds that—between more sellers entering the market and new construction bolstering listings while buyers are sitting out—competition among buyers has reached its lowest point of any June since 2018.
Per Zillow, there were 1.36 million active listings on the market in June—the highest number since November 2019 and a rise from both May 2025 (2.3%) and June 2024 (17.2%). Zillow projects that inventory, which is still 21% lower than pre-pandemic levels, will reach pre-pandemic levels by the end of 2025.
New listings, however, dropped by 10.9% between May and June. Zillow attributed this both to seasonality but also sellers holding off from listing due to slowing sales; June 2025 sales were higher than a year prior, but 4.9% lower compared to the previous month.
Listings that do sell spend an average of 19 days before going pending, compared to 15 days in 2024 and 11 in 2023. Further, 26.6% of Zillow’s listings saw price cuts in June 2025, generally a sign of sellers trying to entice buyers. This number is near the “all-time high” of 27% in September 2022.
Areas seeing the highest number of price cuts are primarily Sun Belt metros, including Denver, Colorado (38%); Raleigh, North Carolina (36%); Dallas, Texas (35%); Phoenix, Arizona; and Nashville, Tennessee (both 35%).
Of the 50 largest metro areas in the U.S., 22 of them were rated as “neutral,” with neither sellers nor buyers having the upper hand. Only 15 markets were rated as neutral a month prior in May.
Markets that remain “strong” in favoring sellers are New York City, New York and Minneapolis, Minnesota. On the other hand, markets that explicitly favor buyers include Boston, Massachusetts; Atlanta, Georgia; Miami, Florida; and Tampa, Florida.
However, the report makes clear that buyers having more negotiating power does not necessarily mean housing is an easy market for them right now. Affordability remains an ongoing challenge for homebuyers, specifically due to high prices and borrowing costs.
“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,” said Zillow Senior Economist Kara Ng in a statement.
In describing what the overall market effects of these numbers are for buyers and sellers, the Zillow press release stated that: “Buyers have more options to choose from, more time to decide on a house and more bargaining power than in prior years. Home sellers need to reach the broadest set of shoppers, price realistically and set their listing apart from the crowd.”
For the full Zillow market report, click here.
