Big shifts are happening in the housing market, and buyers are finally gaining some leverage. After years of sellers calling the shots, the tide is starting to turn — and it's showing up in more homes hitting the market and more price cuts across the country.

According to recent analysis from The Business Journals, 64% of ZIP codes nationwide saw an increase in home listings during the first quarter of 2025. In nearly 8% of those areas, inventory jumped by more than 50%, a clear signal that the market is gaining momentum in buyers’ favor.

Zillow’s senior economist, Orphe Divounguy, notes that although affordability remains a concern, conditions are improving. Mortgage payments are slightly lower than they were a year ago, and housing inventory is up 20% nationally compared to last spring. This gives today’s buyers more choices and greater negotiating power.

Certain regions, like the South, are seeing the biggest inventory jumps thanks to a surge in new construction. But rising home insurance costs — especially in places like Florida and Texas — are also making it harder for some buyers to afford homes, which might be adding to the available listings.

As inventory climbs, competition among sellers heats up, leading to more price reductions. In fact, one-third of homes for sale in March saw a price drop. Sometimes it’s just agents testing the waters with high initial prices, but often it reflects a real shift in market dynamics.

For first-time buyers, this trend could offer a much-needed opening. With the gap between buyer budgets and seller expectations beginning to close, the market is becoming more accessible and balanced.

Divounguy also has a word of advice: don’t try to “time the market.” Mortgage rates are tricky and don't always fall when the Fed makes moves. Instead, focuson what fits within your budget and align your decisions with current financial conditions.

Whether you're a first-time buyer or simply watching the market, this is a great time to explore your options and take advantage of the increased opportunities available.