Nearly 1 in 4 US sellers cut home prices as inventory grows, Zillow report says
FILE-Real estate agents arrive at a brokers tour showing a house for sale in California. (Photo by Justin Sullivan/Getty Images)
A new report reveals that sellers are slashing asking prices for their homes to attract buyers as inventory in the market grows.
Nearly one-quarter of home listings (24.5%) got a price cut in June 2024, representing the highest rate during the summer dating back to 2018, according to Zillow’s report.
Zillow noted that the total number of homes on the market grew this year by 4% from May to June. While inventory levels are 33%, it’s the smallest decline since 2020, when the number of available homes decreased.
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The real estate company reported that housing inventory is higher this year than in 2023 in all the 50 largest U.S. metropolitan areas except two — New York and Cleveland — and rose month over month in all but five.
"A growing segment of homes that aren't competitively priced or well marketed are lingering on the market. Sellers are increasingly cutting prices to entice buyers struggling with affordability," Skylar Olsen, a chief economist for Zillow, said in a company release.
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But despite a rise in housing inventory, buyers still face obstacles to purchasing a home with new mortgages affordable in only 11 of 50 major markets nationwide.
Moreover, slower price growth in the housing market could provide buyers with additional time to save money for a down payment on a home, Zillow noted.
This story was reported from Washington, D.C.