More Homes Are Hitting the Market—But Where Are the Buyers?

The housing market is seeing a shift as new listings rise while demand struggles to keep up. According to Zillow, the number of newly listed homes increased nearly 13% from 2023 and 8% from last April, with total inventory up 22% year-over-year. While inventory remains 34% below pre-pandemic levels, this is the smallest deficit in over three years.

However, despite more homes being available, sales dropped 6% from 2023 to 2024. Nearly one-quarter of all listings received price cuts in May 2024, the highest percentage in six years for that time of year. Zillow economists note that homeowners who had delayed selling are now moving forward, but as supply has grown, buyers are stepping back. Inflation has hit younger households particularly hard, and persistently high mortgage rates have made homeownership unattainable for many first-time buyers. If these trends continue, home prices could flatten or even decline in the coming years.

A separate report from Redfin found that 61.9% of homes on the market in May 2024 had been listed for at least 30 days without going under contract, up from 60% in May 2023 and roughly 50% in May 2022. The increase in unsold inventory means the market is becoming flooded with less desirable listings. In Dallas, more than 60% of homes had been on the market for at least 30 days, up from 53% in 2023. Similar trends are playing out in Fort Lauderdale (75.5%, up from 68.2%), Tampa (68.7%, up from 61.9%), and Jacksonville (69.2%, up from 62.9%). On the other hand, some markets are seeing homes sell faster, with the percentage of listings sitting for 30 days dropping the most in Seattle (41.2%, down from 50.5%), Las Vegas (55.9%, down from 63.9%), and San Jose (34.4%, down from 42.2%).

With inventory growing and buyers holding back, the market may be entering a period of slower sales and potential price corrections. If demand doesn’t pick up, sellers may need to adjust expectations and pricing strategies in the months ahead.