The U.S. housing market finally favors homebuyers, but few can afford it.
The spring buying season is well underway, and it’s a weird one. There are more homes for sale than there have been in years, but few are selling due to high prices. Sellers are realizing they’re no longer in charge, with many offering concessions.
It’s a sharp reversal from the pandemic-era boom. Back then, remote work and ultra-low mortgage rates warped the housing market from balanced into a supercharged seller’s market. By 2021, buyers outnumbered sellers by 900,000, fueling bidding wars and pushing prices higher.
Related: How rising home prices are influencing furniture choices.
But power has shifted. In late 2023, after two years of rising mortgage rates, home sellers began to outnumber buyers. This gap has now widened to nearly 500,000—the largest on records dating back to 2013—as affordability worsens, according to Redfin.
Nationally, it’s now a buyer’s market — even though it doesn’t feel like it for some. However, trends vary from city to city, as high prices and borrowing costs keep demand in check. Here, Redfin shares what to know about buyer’s versus seller’s markets, how to tell which market you’re in, and where each side has the most leverage.
Buyer’s Market
One sign of a buyer’s market is when supply (the number of homes listed on the market) exceeds demand (the number of buyers looking for homes). When this is the case, buyers usually drive negotiations and are more likely to receive concessions.
Home prices often cool off in a buyer’s market, which can ironically help spur competition and swing the pendulum back toward sellers.
Seller’s market
A seller’s market often occurs when demand exceeds supply. Buyers outnumber sellers, creating more competition and fueling bidding wars. Sellers typically lead negotiations and see homes sell for above asking.
House prices tend to rise during a seller’s market.
Sellers outnumber buyers the most in these 10 metros, giving buyers more leverage.
Redfin
The Sun Belt — cities stretching from the Southeast to the Southwest — boomed during the pandemic, as homebuyers searched for warm weather and affordable prices. Homebuilding ramped up as a result, but many houses are now struggling to sell; buyer demand dropped due to quickly rising prices, climate risks, and climbing insurance costs. Florida’s housing inventory reached its highest level on record this year.
The strongest seller’s markets in 2025
In these metros, buyers outnumber sellers the most, meaning sellers may be able to net a higher sale price than in a neutral market. Redfin defined a “seller’s market” as one where the buyers outnumbered sellers by at least 10%, and only seven metros made the cut.
The Rust Belt — cities across the Midwest and Northeast — have built the fewest homes since the pandemic. As people turn to the region for affordable homes, the supply is falling far short of what’s needed and pushing prices up. In Newark, for example, prices rose by 12.2% year over year to hit a record-high median sale price of $635,000 in April.
How to tell if you’re in a buyer’s or seller’s market
Even if the national housing market favors buyers or sellers, individual cities and regions usually vary widely. Sometimes, even adjacent neighborhoods will have completely different trends. That’s why it’s important to do your research to understand which way your market leans.
Talk with a local agent
Local real estate agents know the market the best. They have up-to-date knowledge on how long homes are sitting on the market, whether sellers are cutting prices, and how competitive offers are. An experienced agent can tell you if buyers have the upper hand or if sellers are still in control, and help you make informed decisions in your neighborhood.
Check housing inventory
One common way to gauge a market's direction is to look at “months of supply”—the number of months it would take for available inventory to sell at the current rate. Supply below four months tends to favor sellers, while supply above five months tends to favor buyers.
Track sale price trends
Price growth often accelerates during a seller’s market and cools during a buyer’s market, sometimes even causing home prices to fall. If prices are growing and show no signs of slowing down, you’re probably in a seller’s market.
Look at mortgage rates
Mortgage rates play a huge role in the housing market: Typically, the higher the rates, the less buyers shop for homes, making sellers more desperate for offers. This is the case today, which is putting buyers in the driver’s seat.
What should buyers do in a buyer’s and seller’s market?
- In a buyer’s market: This is the ideal time for buyers to make a move, if they can afford to. Home prices may decline, listings stay on the market longer, and sellers are more likely to negotiate. You may see price reductions, seller concessions, or repairs included to close the deal. With less competition, buyers have more leverage to secure a good home at a better price.
- In a seller’s market: Sellers hold the upper hand, and competition among buyers can be fierce. Homes sell quickly and often attract multiple offers, which can drive prices above asking. If you’re buying in a seller’s market, be prepared to act fast and make strong offers. Trying to negotiate too aggressively could cost you the home.
What should sellers do in a buyer’s and seller's market?
- In a buyer’s market: Selling becomes more challenging when inventory is high and demand is low. Homes tend to sit on the market longer — in fact, the average home today takes over 40 days to sell, and nearly half have sat for 60 or more days. To attract buyers, sellers should price competitively and remain flexible.
- In a seller’s market: This is a great time to sell. Homes typically move quickly, and competition among buyers can lead to multiple offers, bidding wars, or offers above the asking price. With high demand and limited inventory, sellers have the upper hand and are more likely to get favorable terms, including waived contingencies and minimal concessions.
Looking forward
Economic uncertainty continues to affect the housing market, with tariffs, an unsteady stock market, and inflation all contributing to the situation. Homebuilding is more expensive than ever, and mortgage rates are unlikely to fall this year.
But there are positives on the horizon. In part because housing costs are so high and so few homes are selling, prices have started leveling out and even falling in some places. Redfin predicts that they will fall nationwide by the end of the year. Sellers are also increasingly coming to terms with 6% or higher mortgage rates, helping inventory improve.
The prolonged seller’s market is over, so serious buyers with a budget may want to act now while competition is low.
Methodology
Based on a May 2025 Redfin report. All data covers the period of April 2025 and is seasonally adjusted, dating back to 2013. Please see the original report for the full methodology.
This story was produced by Redfin and reviewed and distributed by Stacker.
