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.
But power has shifted. After two years of rising mortgage rates, home sellers began to outnumber buyers in late 2023. 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 for some, it doesn’t feel like it. But trends vary from city to city, as high prices and borrowing costs keep demand in check. Here’s what to know about buyer’s vs seller’s markets, how to tell which market you’re in, and where each side has the most leverage right now.
What is a buyer’s market vs seller’s market?
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.
The strongest buyer’s markets in 2025
Sellers outnumber buyers by the most in these ten metros, giving buyers more leverage.
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
Buyers outnumber sellers by the most in these metros, 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. Now, as people turn to the region for homes they can afford, 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 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 which way a market leans 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 4 months tends to favor sellers, while supply above 5 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 buyers should 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.