T
he total value of homes listed for sale in the US surged to $698 billion in April, a 20.3% increase from the same time last year, according to Redfin's latest report. This new record comes as supply continues to rise and buyer demand remains sluggish. Despite increasing inventory and declining sales, prices have continued to climb modestly, with the median home sale price rising 1.4% year-over-year in April.

    However, experts predict that this trend may soon reverse. Redfin's head of economics research, Chen Zhao, expects home prices to drop by 1% by the end of the year due to rising inventory and weakened demand. The sharp increase in available inventory is driven more by volume than price, signaling a broader shift in market conditions.

    Inventory has hit a five-year high, with the number of homes for sale nationwide jumping 16.7% year-over-year in April. New listings also rose 8.6%, a three-year high. This influx of supply is partly due to growing economic uncertainty and the easing of the mortgage rate lock-in effect.

    As a result, some homes are starting to languish on the market. The typical home that sold went under contract after 40 days in April, up from 35 days a year prior. Meanwhile, 44% of listings had already spent 60 days or more on the market, representing $331 billion in unsold homes – nearly half of the overall market value.

    This glut of aging listings may signal an opportunity for buyers to negotiate prices down, according to Matt Purdy, a Redfin Premier agent. "Buyers have a window to get a deal; there's still a surplus of inventory on the market, with sellers facing reality and willing to negotiate prices down."