04:03 PM EDT, 07/16/2024 (MT Newswires) -- A bigger share of US home sellers lowered prices of their units in June as rising inventory led to increased competition, Zillow ( ZG ) (Z, ZG) said in a report released Tuesday.

Nearly one-quarter of home listings saw price declines last month, the highest share of price cuts "for this time of year" in records dating back to 2018, according to Zillow ( ZG ). Inventory increased 4% month to month, and was 23% above last year's low level.

Supply is still down roughly 33% from pre-pandemic averages, but that's the smallest deficit since the fall of 2020, according to the real estate company.

"For years, the housing market has been defined by fast sales and few options," said Skylar Olsen, chief economist of Zillow ( ZG ). "Now it's starting to look more like it did before the pandemic in terms of competition, if not costs."

While sellers have held an advantage, Zillow's ( ZG ) market heat index indicated that the housing market may be coming into more of a balance.

Annual home value appreciation reached 3.2% nationally last month, down from a 2024 peak of 4.6% in March. Zillow ( ZG ) expects home values to rise 1% over the next 12 months. Monthly growth decelerated to 0.6% in June, marking the slowest June appreciation since 2011.

"A growing segment of homes that aren't competitively priced or well marketed are lingering on the market," Olsen said. "Sellers are increasingly cutting prices to entice buyers struggling with affordability."

Homes sold in June were on the market for an average 15 days before an offer was accepted. That's down by five days from pre-pandemic averages, the smallest difference since June 2020, the report showed.

Price: 53.84, Change: +2.20, Percent Change: +4.26