Home sellers have had the edge over buyers in the U.S. housing market for the past few years, as limited inventory pushed prices sky-high and there was fierce competition for available homes. But a few factors are converging to give buyers reason to be optimistic for the first time in a long time.
General economic uncertainty and housing affordability have been holding buyers back, says Kara Ng, senior economist at Zillow, leading to a lackluster home buying season. With inventory up 17% year-over-year, there are now more homes on the market than at any time since 2019, according to Zillow data. While prices are still significantly higher than they were even a few years ago, home appreciation has been flatlining and interest rates are down slightly compared to a year ago. Sellers across the country are cutting prices.
