An industry report suggests buyers gained temporary leverage in August

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Sellers pulled back in August, hitting record-low new listings for the month, according to Zillow
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Buyers still active face more choices and slightly better bargaining power, but leverage is starting to fade
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Regional divides are widening, with the South shifting toward buyers while the Northeast remains hot for sellers
Home sellers took a noticeable step back from the housing market in August, according to Zillows latest market report, as affordability challenges continued to limit buyer demand.
New listings dropped 7.3% month-over-month the steepest August decline on record leaving overall inventory down 1.3% from its July peak. For buyers still searching, the pullback has created a short-lived window of opportunity.
Options are on the shelves, even if theyre not all fresh, said Zillow Senior Economist Kara Ng. Sidelined buyers should revisit their budget; mortgage rates are lower than recent years, and in some markets, sellers are more willing to deal. But dont expect this window of opportunity to stay open indefinitely.
High home prices and affordability concerns have sidelined many would-be buyers. That shift has left the market more balanced than at any point since 2018.
More time on the market
Homes are taking longer to sell averaging 27 days in August, a week longer than last year and price growth has slowed to a standstill. Zillows Home Value Index shows no year-over-year appreciation nationwide, one of the weakest readings since 2018.
Yet even as activity cooled, late-summer competition ticked slightly upward, signaling the balance may be short-lived. Buyers who can still act may want to do so soon before leverage shifts back toward sellers.
The record-low number of August listings reflects a broader trend of homeowners choosing to sit tight. Many are locked into historically low mortgage rates and remain comfortable holding onto properties that have gained 46.5% in value since February 2020.
Zillows survey of recent sellers found that 37% listed their homes after a job change. With the labor market softening, fewer forced sales may further limit inventory in the months ahead.
Regional contrasts: South vs. Northeast
While national averages show a balanced market, local conditions vary widely.
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Buyer-friendly markets: The South has seen the most dramatic shift, with former boomtowns like Miami, Tampa, Jacksonville, and Austin now firmly favoring buyers. Inventory in Seattle has surged 22% year-over-year, tipping the market toward buyers there as well.
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Seller-friendly markets: In contrast, the Northeast and San Francisco Bay Area remain fiercely competitive. Cities like Buffalo, Hartford, San Francisco, San Jose, and Boston continue to favor sellers, with supply still well below pre-pandemic norms.
Metro trends to watch
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Miami: Home values down 4.9% year-over-year, with homes taking 65 days to sell among the slowest in the country.
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Austin: A similar trend, with values down 5.8% and a 71-day median time to pending sale.
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Buffalo andHartford: Strongest seller markets, with homes going under contract in as few as 811 days.
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Chicago andPhiladelphia: Still leaning seller-friendly, but with modest year-over-year price gains around 3%.
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San Francisco andSan Jose: Despite falling prices, limited supply keeps competition high.
According to Zillow, the housing market has entered a holding pattern. Buyers have gained some temporary breathing room as sellers step back, but the reprieve may not last long. With inventory tightening again and mortgage rates showing signs of easing, both sides of the market are watching closely to see which way momentum shifts next.
Posted: 2025-09-18 11:43:18