According to a recent market report by Zillow, new listings from home sellers have increased significantly, with a 13% jump compared to last year. However, despite the surge in new listings, potential buyers are not returning to the market, leading to an increase in inventory. This imbalance has resulted in properties staying on the market for longer periods of time, as sales are not keeping up with the flow of homes entering the market.

An analysis by Redfin revealed that almost two-thirds of homes listed in May had been on the market for at least 30 days without going under contract, and 40.1% had been listed for at least two months without selling. The slowdown in the market can be attributed to high mortgage rates and housing affordability issues, which have prevented many potential buyers from entering the market. Daryl Fairweather, chief economist at Redfin, highlighted that there is still a significant housing unit deficit nationwide, with approximately 4.3 million homes needed to meet demand.

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