Zillow Group Inc. has released a market analysis indicating a significant shift in the U.S. housing market, with inventory reaching a five-year high and a surge in price cuts. As of June, 1.36 million homes were for sale, the highest number since November 2019, marking a transition towards a more balanced market where buyers and sellers share negotiating power. The report highlights a record-high 26.6% of listings experiencing price reductions, particularly in the Sun Belt and Mountain West regions. Despite this balance, affordability remains a challenge, especially for first-time buyers, as inventory is still approximately 21% below pre-pandemic levels. Zillow's analysis reveals that while the market may appear neutral, the affordability crisis continues to hinder entry for many potential buyers, benefiting primarily those with greater purchasing power.
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