Zillow reveals why some homebuyers have an edge

12 Sep 2026, 17:07 · The Fresno Bee

Many homebuyers have felt the strain of an expensive housing market so far in 2026. High housing prices, surging mortgage rates, and costs such as insurance and property taxes are making monthly payments unaffordable for numerous Americans.

Real estate technology company Zillow released its August 2026 Market Report on Sept. 8. The report showed that high costs have had several negative consequences for the housing market, including slower home sales and higher monthly mortgage payments.

But Zillow also discovered a bright spot for homebuyers: less competition.

In fact, if you can still afford a home in today’s real estate market, you may have some serious advantages.

“Affordability is putting the brakes on the for-sale market, but it is also changing the experience for buyers who remain active,” wrote Mischa Fisher, Zillow chief economist. “Less competition gives well-prepared buyers a better chance to compare options and negotiate with confidence.”

More homes for sale could give buyers more negotiating power

Zillow data showed 1.41 million homes for sale in the U.S. in August.

Active inventory, which refers to all homes for sale during the month, increased 3% year over year. It also rose monthly, up 0.2% from July.

New listings hit 356,934 in August, which is a 2.4% annual increase.

New listings are down 7.9% from July. However, this decline may partly reflect typical housing market trends. For example, Opendoor reports that sale price versus market value, days on the market, and buyer competition are typically a little weaker in August than in July. These types of factors could discourage sellers from listing their homes in August.

The national housing shortage is the main driver of the U.S. home affordability crisis. The country still has a long way to go — Zillow estimates that 4.7 million new homes need to be built — but a 3% annual increase is a good start.

More inventory means less competition among buyers. And less competition typically leads to lower home sale prices.

Bloomberg / Getty Images

More than 1 in 4 listings had a price cut

When a seller cuts the listing price on their home, buyers benefit in two ways.

The first (and most obvious) perk is that the price is now lower. Someone who was on the fence about being able to afford the house before might be able to make an offer now.

The second is that, depending on the circumstances, a price cut might indicate that a seller is more motivated to negotiate and make the sale work.

The Zillow August 2026 Market Report revealed that 26.3% of home listings had a price cut in August. That’s a year-over-year increase of 0.5%.

More Housing Market:

“Buyers who can make a move today are encountering conditions that were scarce during the frenzied years: more homes to consider, more time to decide and sellers who are increasingly cutting prices to attract buyers,” wrote Zillow.

Mortgage rates may have been lower from 2020-2022, but “frenzied” is the perfect word to describe the national real estate market in those years. Now, borrowers can take their time, wait for possible price cuts, and find more opportunities for negotiations.

Key takeaways from the Zillow Market Report

Buyers in areas with more inventory have more power.Zillow found that a select few U.S. metro areas experienced more inventory growth in August than others: Salt Lake City (6.2%), Buffalo, New York (5.2%), and Detroit (5%) topped the list.
Buyers in cities with decelerating inventory have less power. Some metro areas actually lost inventory in August. The most significant drops were in Boston (-4.2%), New York City (-3.5%), and Austin, Texas (-3.2%). As a result, residents could face more competition and even higher prices.
Monthly pricing cuts are down. Although the year-over-year number of listings with price cuts has increased by 0.5%, they’ve decreased by 0.8% since July.
An expensive housing market also means less competition. High home prices and mortgage rates have priced some people out of the 2026 housing market. If you can afford to buy a home, this means even less competition for you, which could help you negotiate for a lower price or other concessions.
Be honest about what’s affordable. The truth is, the current national housing market is good for those who can afford a home they like and the monthly payment that comes with it. But it’s still an expensive market overall. Don’t take on a mortgage so large that the rest of your life becomes financially stressful.

The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.

This story was originally published September 12, 2026 at 10:07 AM.