Prospective homebuyers treaded cautiously in April, with many preferring to bide their time amid tariff tensions and economic uncertainty. That led sellers to cut home prices in April at a rate not seen since before the COVID-19 pandemic, according to a recent Zillow report.

April pending home sales were 2.5% lower than the prior year, according to Zillow. Meanwhile, new April listings increased 7.6% compared to last year and nationwide housing inventory is up nearly 20% year over year, reaching levels not seen since 2020.

Many sellers responded to the lack of buyer enthusiasm by cutting prices. The real estate listings company observed that 24.5% of listings underwent a price cut in April, which is the highest share for that month since at least 2018.

“Economic anxieties disrupted the start of the home shopping season,” stated Zillow Senior Economist Kara Ng in a press release. “In April, many households didn’t know what was next for their jobs, investment portfolios or budgets. This kept some buyers on the sidelines, waiting for clearer economic signals before making major purchases like a home.”

The spring homebuying season has slowed compared to last year despite lower interest rates and smaller average mortgage payments. Zillow found that the typical U.S. home value was $365,887 in April and the typical monthly mortgage payment, assuming a 20% downpayment, was $1,903, which is about 1.3% lower than April 2024.

However, both home values and mortgage payments have risen since March, when the typical home value was $359,741 and the typical mortgage payment was $1,855.