Redfin released the stats and data about the housing market conditions in the U.S. A 1% home price drop was already predicted, and now the situation seems to support that. There are approximately 33.7% more sellers than buyers, which indicates that buyers have more options and can negotiate for lower prices.
Sellers are advised to sell their houses sooner, as the prices might drop further. As per the report, most of the metro areas have become a buyer’s market.
Highlights
- Recent trends, especially in April 2025, experienced more sellers listing homes for sale, while the number of buyers remained low.
- More options have led to price drops, turning 31 metro areas into a buyer’s market.
- Condo and townhouse segments are feeling more pressure than single-family homes.
Sellers Outnumber Buyers: The Majority of the U.S. Has Become a Buyer’s Market
Redfin ran an analysis of the U.S. housing market by collecting data from the Multiple Listing Service (MLS) regarding the number of homes for sale. With the number of sellers and the time for which houses remain on the market, a report was created regarding the number of buyers and sellers, and how the home prices can shift.
The exact data figures suggest that there are 33.7% more sellers as compared to buyers. This marks a significant change from the seller-dominated markets seen throughout the pandemic and its immediate aftermath. Homes are taking longer to sell, with average days on the market increasing notably compared to last year.
After 2013, this has been recorded in recent times that sellers have outnumbered buyers with such a significant margin. Even last year, sellers were only 6.5% more than buyers. These stats give hope of cooling home prices, but still number of active buyers is not increasing much. In many areas, buyers are discouraged by high mortgage rates and economic uncertainty.
The current situation of most regions becoming a buyer’s market, that is, more negotiating power for buyers leading to a fall in home prices, the earlier prediction by Redfin regarding a 1% drop in home prices by year-end seems like reality.
Similar Historic Trends
Though this is not happening for the first time that sellers outnumbered buyers, this year has been on the higher side of this trend. Earlier, in 2013-14, the changes in the ratio of buyers to sellers also led to changes in home prices in direct proportion.
After that, this happened in 2018 when mortgage prices surged. At that time, sellers were 9.4% more than the buyers. In both situations, home prices shrank with an increase in the number of sellers. Since 2023, annual home price growth has now slowed to 1.6%. If the trend continues, history will repeat itself, and 2025 might experience even lower home prices by the end.
Circumstances When Sellers Outnumber Buyers
Several key factors are driving the trend of the seller-buyer ratio in 2025. The dynamics have shifted towards the buyers, and the following are the reasons why sellers are increasing and buyers are not stepping forward actively.
- Home prices and mortgage rates seem unrealistic to buyers. There was a 1.6% increase in median home sale price in April. This growth might look slow and affordable, but monthly payments and mortgage rates have been on the higher side.
- The changes in the tariff and federal policies lead to a sense of economic instability, which further deters buyers from investing their money in purchasing a home.
- Homeowners are giving up low mortgage rates secured during the pandemic as situations changed after that. This adds to the dampening of buyer behavior.
What should buyers do? If someone can manage their finances well and has been planning to buy a house, they can take a chance now, if mortgage rates remain steady as expected. For sellers, waiting is not worth it. The home prices may fall further, so sell it sooner!
Condition of Condos, Townhouses, and Single-Family Housing Market
After the overall discussion of the housing real estate, the analysis also highlighted the individual status of different types of houses. For condos, the difference in sellers and buyers is 83.5%, for single-family homes it is 27.8 %, and 33% for townhouses. This suggests that currently, it is most difficult to sell condos.
The costs for maintaining condos are rising rapidly, which has led to many condo listings for sale. The prices for condos are also cooling rapidly due to a seller-buyer imbalance. The median sale price of condos showed only a 0.4% year-over-year increase in April.
Condition of the Regional Housing Market
Out of the 50 metro areas across the U.S., the majority have turned into a buyer’s market. Miami and West Palm Beach of Florida, top the list with the highest percentage difference between sellers and buyers.
Some cities in Texas, Arizona, Nevada, and Tennessee are also part of the top buyer’s market. Once competitive hotspots, these metros now have more listings than buyers, with many sellers cutting prices to attract interest.
Despite the national trend, a few markets are still seller-friendly. Areas like Newark, Providence, Baltimore, etc., still have tight inventory and steady demand. Places like Boston, Philadelphia, Cincinnati, and more are quite balanced, showing neither extreme buyer nor seller advantages.
The housing market in the U.S. is undergoing noticeable changes, providing new opportunities for buyers. While there are some legal and economic hurdles, the shifting power dynamics can be utilized by buyers for flexible pricing and multiple options.
