Zillow: Price Cuts Hit Record as Inventory Floods Back (May 2025)

On The Market

Price cuts surge across the housing market as inventory bounces back in a big way. The “healthier” housing market is starting to show, and the “gap” between buyers and sellers is shrinking. Zillow’s Orphe Divounguy is back to give a sneak peek at their latest housing market data, which shows encouraging signs for buyers, agents, lenders, and anyone who wants the housing market to get back in action!

After Zillow recently forecasted a home price decline in 2025, many saw this as a bearish signal for housing. But Orphe, Senior Economist at Zillow, says that this is instead a good sign for the market. With inventory rising, sellers are getting more realistic, meaning lower prices and more choice for buyers. But what about mortgage rates—could they also drop and fuel even greater affordability? Orphe is sharing his mortgage rate prediction as well.

How will trade wars and tariffs affect the housing market with so many Americans on the financial edge? Could higher inflation and a potential recession breed big trouble for the housing market? We’re getting Orphe’s refreshingly data-backed (and surprisingly optimistic) take on what’s to come in the rest of 2025.

In This Episode We Cover

Zillow’s latest May 2025 housing market update (and GOOD news for buyers)

Record price cuts: why sellers are starting to get realistic

Housing markets seeing the most pain, and which to think twice about before investing

How trade wars and tariffs could hit housing, and Orphe’s take on inflation

Is a recession really coming? Why Orphe isn’t so sure that the writing is on the wall

And So Much More!

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