Market conditions for homebuyers are showing signs of gradual improvement, with listings ticking up and high prices moderating, according to the latest monthly report from Zillow.

The report shows that the total number of homes on the market has so far risen throughout the year, ticking up 4% from May to June, nearly 23% above last year's lowest level. Granted, while inventory levels are still about 33% below pre-pandemic averages, this marks the smallest deficit since the fall of 2020, when the pool of available homes was plummeting.

Additionally, according to the report, inventory is higher than last year in all of the 50 largest U.S. metropolitan areas except two — New York and Cleveland — and rose month over month in all but five metros.

While hot listings still sell quickly, buyers are generally enjoying a few more days to weigh their choices than they had last summer. Homes sold in June were typically on the market for 15 days before the seller accepted an offer. That's five days shorter than pre-pandemic norms, the smallest difference since June 2020.

Meanwhile, slowing price appreciation is giving homebuyers a bit of a break. According to the report, annual appreciation is 3.2% nationally, down from a 2024 peak of 4.6% in March. Monthly growth has decelerated to 0.6% — the slowest June appreciation since 2011. Zillow forecasts home values to rise just 1% nationally through June 2025.

While sellers still have a slight edge nationally, Zillow's market heat index shows a balanced market may be just over the horizon. Nearly one-quarter of listings (24.5%) received a price cut in June, the highest rate for this time of year in Zillow records dating back to 2018.

While these national trends are encouraging, the picture might be different in your market. So if you're considering buying or selling a home, talk to a local real estate professional to understand how these indicators may be playing out in your area.