New for-sale home listings in the US grew at a faster rate annually than sales for the first time this year as elevated mortgage rates stalled recovery, Zillow Group (Z, ZG) said Wednesday.
New listings rose 2.1% year over year to 426,356 units in April, while sales eased 0.4% to 323,631 units, according to the real estate marketplace. Active inventory increased 3.7% last month, putting the total number of for-sale homes at 1.3 million.
"The spring rebound we anticipated at the start of the year and that produced the stronger sales figures in March was put on pause in April by higher rates," Zillow Chief Economist Mischa Fisher said. "Still, someone who held off in 2025 hoping conditions would improve has seen that improvement."
Last week, the average interest rate for 30-year fixed mortgages with conforming loan balances of $832,750 or less increased to 6.45% from 6.37% sequentially, a report by the Mortgage Bankers Association showed Wednesday.
The monthly mortgage payment on a typical home in the US dropped 3.4% annually to $1,829 last month, while home values rose 0.7% to $366,712, Zillow said.
The share of listings with a price reduction was 23.5% in April, down one percentage point from a year earlier, but up 0.9 percentage point sequentially.
Despite the recent rise in mortgage rates, buyers who waited out the market of 2025 are entering on slightly better terms this spring, with more options, improved affordability and a little more decision time, according to Zillow.
"With more homes to choose from and lower monthly costs than a year ago, the math has shifted in favor of buyers even if the moment may not feel like it," Fisher said. "There's still plenty of reason for optimism that we will see a quick rebound if rates cooperate."
On Tuesday, government data showed that new-home sales in the US grew past Wall Street's estimates for March, driven by a demand surge in the Northeast region.
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