SEATTLE, WA — The housing market’s spring thaw has been tempered by continued economic uncertainty, with Zillow’s latest market report revealing a nuanced landscape for buyers and sellers. While inventory has reached its highest levels in nearly five years, home sales dropped slightly compared to the same period last year, reflecting a market caught between improved affordability and cautious consumer sentiment.
According to Zillow, newly pending home sales in April were down 2.5% year-over-year, despite a modest 1.3% reduction in mortgage payments relative to April 2024. On the other hand, sellers have been more confident, driving a 7.6% increase in new listings compared to last year.
“Economic anxieties disrupted the start of the home shopping season. In April, many households didn’t know what was next for their jobs, investment portfolios, or budgets,” said Zillow senior economist Kara Ng. “This kept some buyers on the sidelines, waiting for clearer economic signals before making major purchases like a home.”
The Northeast remains a highly competitive region, while buyers in the South benefit from more relaxed conditions, bolstered by inventory gains driven by new construction. Tampa, Jacksonville, and Miami were among the Southern cities where buyers are finding more options. Meanwhile, sellers maintain stronger leverage in markets like Buffalo, Hartford, and Boston.
Higher inventory has provided buyers with more time and choice, pushing the median days on market to 16, up from 13 days last year. However, slow decision-making has led to 25% of Zillow’s listings undergoing price cuts in April, the highest share for this time of year since at least 2018.
For renters, affordability remains a growing challenge. Zillow’s Rental Market Report shows the typical renter now requires an income of $80,000 to afford a lease nationwide, with soaring costs in major cities pushing more would-be buyers to extend their rental tenure.
Despite these challenges, Zillow notes signs of warming activity heading into the peak summer housing season. Month-over-month, newly pending sales rose 3.4% from March to April, hinting at a potential rebound as buyers adapt to recent economic shifts.
Looking ahead, Zillow predicts that improving affordability and greater home availability may help stabilize the market in the coming months, as lingering economic fears continue to shape buyer and seller behavior.
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