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Report: Home Sellers Cut Prices as Inventory Rises in Metropolitan Areas

The June 2024 Market Report from Zillow shows home sellers are cutting prices as more inventory hits the market.

Posted July 16, 2024

The latest monthly report from Zillow shows inventory has risen in major metropolitan areas but the monthly home values are starting to dwindle and affordability is still a challenge.

The number of homes on the market has increased by 4% from May to June, according to Zillow’s June 2024 Housing Market Report. Inventory levels remain around 33% below pre-pandemic averages, the smallest deficit since the fall of 2020.

Inventory is higher than last year in all 50 largest U.S. metropolitan areas except New York and Cleveland. Kansas City is still identified as a seller’s market with a home price of about $307,949 based on the June Zillow Home Value Index. That’s a 0.7 % change month over month. The share of listings with a price cut in Kansas City is 26.3 %, with a 21.1 % increase in inventory year-over-year. 

The cost of homes continues to rise despite mortgage rates cooling in May. A median-income household can afford mortgage payments when buying a typical home in only 11 of the 50 major markets, according to Zillow.

Furthermore, home values have slowed with annual appreciation at 3.2% nationally, down from 4.6% in March.