Zillow's May Market Report: The housing recovery is back on pause

New listings and sales fall behind 2025 as mortgage rates rise past 6.5%

SEATTLE, June 4, 2026 /PRNewswire/ -- Home sales and new listings fell behind last-year levels in May as mortgage rates steadily rose, according to the Zillow^® May Market Report.

New listings have historically peaked in May or June but sellers pulled back this May; new listings ticked down 0.8% month over month, and now stand 4.1% lower than last year.

Sales trended up from April, rising 4.8% month over month, but fell off the historic trend line, declining 2.9% from last year.

Meanwhile, inventory growth continued to rise on an annual basis, extending an unbroken streak of annual growth to 30 straight months. However, the pace slowed and is trending toward negative, inching up 1% from last year.

Typical home values rose slightly (0.6%) on a monthly basis to $368,720. Combined with higher mortgage rates, that brought the cost of a typical mortgage to $1,861, rising 1.1% from April to May. However, mortgage rates remain lower than last year — even with a 0.8% annual growth in home values, typical mortgage costs are still 3.1% lower than last May.

"May housing results were disappointing for those hanging on to hope of a stronger year for sales," said Mischa Fisher, chief economist at Zillow. "Inventory is rising, but weekly data suggests it could flatline in the next four weeks. A June peak for options home shoppers have to choose from would be early on the calendar, possibly foreshadowing slower sales in the second half of the year."

Home Values & Mortgage Payments

Inventory

Sales

Competition

Rents

Local data can be found on Zillow's market explorer. The Zillow June Market Report is expected to be released July 7.

Forward-looking statements
This press release includes forward-looking statements about future housing market conditions, mortgage rates, rental trends and other economic factors. These statements are based on current expectations and assumptions, which are subject to change. Actual outcomes may differ materially due to changes in economic and market conditions. Forward-looking statements speak only as of the date of this release, and Zillow Group undertakes no obligation to update them.

About Zillow Group
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people.

As the most visited real estate app and website in the United States, Zillow connects hundreds of millions of consumers with innovative technology, trusted agents and loan officers, and seamless digital solutions. With industry-leading tools and resources, Zillow supercharges real estate professionals so they can grow their businesses and deliver exceptional client experiences. For renters and housing providers, Zillow offers not only a robust marketplace but a set of end-to-end products and services to streamline applications, leases, payments and more.

Zillow's ecosystem spans the entire home journey — from dreaming and shopping to renting, buying, selling and financing.

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SOURCE Zillow