Is it a buyer’s or seller’s market?

The US housing market is finally favoring homebuyers, but few can afford it

It’s a buyer’s marketmeaning buyers have the upper hand. Following the pandemic fueled In the 2021 sellers’ market, sellers now outnumber buyers by a near-record share – more than 37% – as a result of two years of rising mortgage rates and home prices. In numerical terms, there are currently an estimated 1.95 million sellers and 1.43 million buyers in the market.

Affordability remains the starting point biggest barrieralthough. Most buyers can’t afford a home, which leads to fewer sales, deterring home sellers and slowing an already sluggish market. The number of buyers and sellers in the market is now both fallwith buyers hitting historic lows.

So, where do we go from here? Here’s what you need to know about buyer versus seller markets, how to tell which market you’re in, and where each party has the most influence right now.

What is a buyer’s market versus a seller’s market?

Buyer’s market

A buyer’s market typically occurs when there are more homes for sale than buyers interested in purchasing them. When this is the case, buyers typically lead the negotiations and are more likely to receive concessions.

House price growth is often lower in buyer’s markets than in seller’s markets. But if the buyer’s market sees prices cool substantially, the pendulum could swing back to sellers as more homebuyers get off the couch.

Sellers’ market

A seller’s market usually occurs when demand exceeds supply. There are more buyers than sellers, creating more competition and fueling bidding wars. Sellers typically lead negotiations in a seller’s market and see homes sell for more than asking amounts. House prices also rise faster and are sold faster.

>> Read: Disadvantages of Sellers Paying Closing Costs

The strongest buyer markets in 2025

In these ten metros, sellers outnumber buyers the most, giving buyers more influence. Redfin defined a “buyer’s market” as one in which the number of sellers exceeded the number of buyers by at least 10%.

The Sun Belt – cities stretching from the Southeast to the Southwest – is home to all of the country’s strongest buyer markets. Austin took first place, which was ground zero for the cooldowns sweeping pandemic boomtowns since 2022.

The Sun Belt skyrocketed in popularity during the pandemic, as dozens of homebuyers moved in from more expensive parts of the country, driving up housing costs and pushing many locals out of the market.

The housing supply also plays a role. Especially Florida and Texas seen an increase in housing construction during the pandemic to meet demand, but many of these homes now sit unsold as buyers pull out. Florida’s housing inventory has reached its peak highest level ever measured in 2025, with demand falling rapidly due to rising prices, climate risks and high insurance costs.

The strongest seller’s markets in 2025

In a handful of metro areas, buyers still outnumber sellers, giving sellers an advantage. Redfin defined a “sellers’ market” as one where the number of buyers exceeded the number of sellers by at least 10%, and only seven metros met the cutoff.

The Midwest and Northeast are home to most of the remaining sellers’ markets. The new construction here has lagged behind, and with more people look to move Turning to the region for homes they can afford, supply falls far short of what is needed, causing prices to rise.

San Francisco in particular has turned into one of the most popular markets in the country despite the sky-high prices. Since September, the Bay Area city has gone from a buyer’s market to a seller’s market no sign of slowing down. Vast amounts of technological wealth allow buyers to afford the downright unaffordable market.

What buyers should do now

• If you are buying in a buyer’s market: This is the ideal time for buyers to make a move, if you can afford it. House prices may fall, offers remain 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 influence secure a house at a better price.
• If you are buying in a seller’s market: Sellers have the upper hand and competition between buyers can be fierce. Homes often sell quickly and attract multiple offers, which can cause prices to rise well above the asking price. If you’re buying in a seller’s market, be prepared to act quickly and make money strong offers; If you try to negotiate too aggressively, it could cost you the house.

>> Read: Is Now a Good Time to Buy a House?

What sellers should do now

• If you are selling in a buyer’s market: Selling becomes more challenging when inventory is high and demand is low. Houses generally stay on the market longer. In fact, it now takes more than 50 days for the average house to sell almost half have been in jail for more than 60 days. To attract buyers, sellers must price competitively and remain flexible.
• If you are selling in a seller’s market: This is a good time to sell. Homes typically move quickly and competition among buyers can lead to multiple offers, bidding wars, or offers above asking price. When demand is high and inventory is limited, sellers have the upper hand and are more likely to receive favorable terms, including waived contingencies and minimal concessions.

>> Read: Should I sell my house now?

How do you know if you are in a buyer’s or seller’s market?

Even though the national housing market favors buyers or sellers, individual cities and regions tend to vary widely. Sometimes even adjacent neighborhoods will show completely different trends. That’s why it’s important to do research to understand which direction your market is leaning.

Here are a few ways to stay ahead of the competition.

Check the Redfin data center

Redfin publishes its dynamics of buyers versus sellers research into the Redfin Data Center for public viewing. On the dashboard you can see whether the national housing market – and one of the fifty largest metropolises – is leaning towards buyers or sellers. This is a good way to get a basic idea of ​​the housing market, but it may not reflect your neighborhood or city. That’s where additional research and insight comes in.

Talk to a local agent

Local real estate agents know their market best. They have up-to-date knowledge about how long homes are on the market, whether sellers are lowering prices and how competitive listings are. An experienced real estate 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.

Research home inventory

A common way to gauge which way a market is leaning is to look at “months of supply”: the number of months it would take for the available inventory to sell at the current rate. The offer under four months generally favors sellers, while the offer above five months favors buyers. Redfin publishes this data on the Redfin Data Center for every city and metropolitan area in the country.

Follow sales price trends

Price growth often accelerates during a seller’s market and cools down during a buyer’s market, sometimes even causing home prices to fall. If prices are rising and show no signs of slowing down, you may be in a seller’s market.

Look at the mortgage interest rate

Mortgage interest play a major role in the housing market. The higher the rates, the fewer buyers shop for homes, making sellers more desperate for deals. This is the case today, putting buyers in the driver’s seat.

I look ahead

Economic uncertainty continues to wreak havoc on the housing market, with inflation, tariffs and immigration policies all playing a role. That includes residential construction more expensive than everputting pressure on the nation aging housing stock.

But there are positive developments on the horizon. Partly because housing costs are so high and so few homes are being sold, price growth has slowed somewhat some placesit falls. Additionally, mortgage interest rates remain at recent lows, which could help bring some life back into the housing market.

The long seller’s market is over, so serious buyers on a budget may want to act now while competition is low.

Methodology

Based on a November 2025 issue Redfin Report. All data cover the period October 2025 and are seasonally adjusted and date from 2013. See this article for the full methodology.