Business
Home listings surge as buyers move carefully in spring market
Sales still lag behind new listings, despite lower mortgage costs Newly pending sales in April fell 2.5% compared to a year ago, despite lower average
About this update from Zillow Group, Inc.
[{"type":"text","content":"Sales still lag behind new listings, despite lower mortgage costs \nNewly pending sales in April fell 2.5% compared to a year ago, despite lower average mortgage rates. Sellers are more enthusiastic than buyers; new listings rose 7.6% over last year. Mortgage payments are 1.3% smaller than last year due to lower rates and moderating home value growth.Competition among buyers is fierce in the Northeast and more relaxed in the South. SEATTLE, May 15, 2025 /PRNewswire/ -- Activity in the housing market is warming up with the weather, but economic uncertainty is causing some buyers to hesitate. According to the latest market report1 from Zillow®, home sales declined slightly from last year, while inventory reached levels not seen in nearly five years. Competition varies sharply by region.\n\n \n \n \n \n \n \n\n \n\"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. This kept some buyers on the sidelines, waiting for clearer economic signals before making major purchases like a home,\" said Zillow senior economist Kara Ng. \"As uncertainty has since eased, improved availability and affordability in homes could lead to a rebound in the coming months.\" \nBuyer and seller activity is picking up heading into the traditional peak for home shopping. Newly pending sales rose 3.4% from March to April. However, they're still 2.5% below where they were this time last year.\nLower mortgage rates have brought some relief, reducing monthly payments by about 1.3% compared to last April2. But economic uncertainty weighs more heavily on buyers — especially first-time buyers — than it does on sellers, who are generally more financially stable and have home equity to put toward their next purchase.\nSellers, meanwhile, are more active. New listings climbed 9.8% month over month and 7.6% compared to last year, outpacing sales nationwide. In fact, 44 of the 50 largest metros saw an annual increase in new listings.\nTo close the gap with cautious buyers, nearly 25% of Zillow listings underwent a price cut in April — the highest share for this time of year since at least 2018.\nBuyers have a wealth of options to choose from. Inventory nationwide is up nearly 20% year over year, reaching levels not seen since August 2020. In 16 major met...