Inventory of homes for sale surged 19.6% in April compared with April 2024 – and new listings were up 7.6% – but it hardly matters, because buyers aren’t buying right now, a report from Zillow shows.
Newly pending home sales in April fell 2.5% compared to a year ago, despite lower average mortgage rates, and sellers are now more enthusiastic than buyers, according to the report.
Central to buyer hesitancy right now is economic uncertainty.
“Economic anxieties disrupted the start of the home shopping season,” says Kara Ng, senior economist for Zillow, in the report. “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.”
“As uncertainty has since eased, improved availability and affordability in homes could lead to a rebound in the coming months,” Ng says.
Buyer and seller activity is picking up heading into the traditional peak for home shopping, Zillow says. Newly pending sales rose 3.4% from March to April.
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.
Sellers, 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, Zillow says.
Photo: Peter Thomas