Zillow Reports May Home Sales, Inventory Rise Amid Affordability Challenges

In 2025, Zillow Group Inc reports a positive shift in the U.S. housing market driven by increased home sales and a surge in inventory, with newly pending sales rising 3.5% in May compared to April and inventory reaching its highest level since July 2020. Despite these gains, affordability challenges persist, as many buyers struggle to save for down payments and find homes within their budgets, with some opting to rent starter homes instead. Sellers are responding to the changing market by cutting prices on nearly 26% of listings and experiencing longer times on the market, while Zillow's research highlights that strategic home improvements, such as painting kitchens dark olive green or bedrooms navy blue, can increase sale prices by over $1,500. Zillow Home Loans offers competitive mortgage rates and a streamlined online prequalification process, integrating home search and lending, though it does not operate in New York and does not provide home equity loans. For sellers in competitive markets like Baltimore, Zillow recommends listing on the MLS, optimizing timing, enhancing screen appeal with interactive listings, and highlighting trending natural features to maximize sale prices. Overall, Zillow's data-driven approach and digital services position it well to navigate the evolving real estate landscape marked by increased inventory, buyer negotiation power, and ongoing affordability challenges.