The U.S. housing market lastly favors homebuyers, however few can afford it
It’s a purchaser’s market, which means consumers have the higher hand. Following the pandemic-fueled vendor’s market in 2021, sellers now outnumber consumers by a near-record share—greater than 37%—attributable to two years of rising mortgage charges and residential costs. In numeric phrases, there are an estimated 1.95 million sellers and 1.43 million consumers available in the market right this moment.
Affordability stays the largest barrier, although. Most consumers can’t afford a house, which is resulting in fewer gross sales, deterring residence sellers, and slowing down an already sluggish market. The variety of consumers and sellers available in the market are actually each falling, with consumers reaching historic lows.
So, the place will we go from right here? Right here’s what to find out about purchaser’s vs vendor’s markets, inform which market you’re in, and the place either side has probably the most leverage proper now.
What’s a purchaser’s market vs vendor’s market?
Purchaser’s market
A purchaser’s market usually occurs when there are extra houses on the market than consumers to buy them. When that is the case, consumers normally drive negotiations and usually tend to obtain concessions.
House worth development is usually decrease in purchaser’s markets than vendor’s markets. But when a purchaser’s market sees costs cool considerably, the pendulum might swing again towards sellers as extra homebuyers come off the bench.
Vendor’s market
A vendor’s market normally happens when demand exceeds provide. Patrons outnumber sellers, creating extra competitors and fueling bidding wars. Sellers usually lead negotiations in a vendor’s market and see houses promote for above asking. Home costs additionally are inclined to rise extra shortly and promote quicker.
>> Learn: Disadvantages of Sellers Paying Closing Prices
The strongest purchaser’s markets in 2025
Sellers outnumber consumers by probably the most in these ten metros, giving consumers extra leverage. Redfin outlined a “purchaser’s market” as one the place sellers outnumbered consumers by at the very least 10%.
The Solar Belt—cities stretching from the Southeast to the Southwest—is residence to all the nation’s strongest purchaser’s markets. Austin took the highest spot, which has been floor zero for the cooldowns sweeping pandemic boomtowns since 2022.
The Solar Belt skyrocketed in reputation throughout the pandemic, when scores of homebuyers moved in from costlier components of the nation, driving up housing prices and pricing many locals out of the market.
Housing provide additionally performs a task. Florida and Texas specifically noticed a surge in homebuilding throughout the pandemic to satisfy demand, however many of those houses are actually sitting unsold as consumers again off. Florida’s housing stock reached its highest degree on file in 2025, with demand dropping shortly attributable to rising costs, local weather dangers, and excessive insurance coverage prices.
The strongest vendor’s markets in 2025
In a handful of metros, consumers nonetheless outnumber sellers, giving sellers the sting. Redfin outlined a “vendor’s market” as one the place the consumers outnumbered sellers by at the very least 10%, and solely seven metros made the lower.
The Midwest and Northeast are residence to a lot of the remaining vendor’s markets. New building has lagged right here, and with extra individuals trying to transfer to the area for houses they’ll afford, provide is falling far in need of what’s wanted and pushing costs up.
Notably, San Francisco has become one of many hottest markets within the nation regardless of its sky-high costs. Since September, the Bay Space metropolis has flipped from a purchaser’s market to a vendor’s market, with no signal of slowing down. Giant quantities of tech wealth are permitting consumers to afford the frankly unaffordable market.
What consumers ought to do proper now
- In the event you’re shopping for in a purchaser’s market: That is the perfect time for consumers to make a transfer, in case you can afford to. House costs might decline, listings keep in the marketplace longer, and sellers usually tend to negotiate. You may even see worth reductions, vendor concessions, or repairs included to shut the deal. With much less competitors, consumers have extra leverage to safe a house at a greater worth.
- In the event you’re shopping for in a vendor’s market: Sellers maintain the higher hand, and competitors amongst consumers might be fierce. Properties typically promote shortly and appeal to a number of affords, which might drive costs effectively above asking. In the event you’re shopping for in a vendor’s market, be ready to behave quick and make sturdy affords; attempting to barter too aggressively may value you the house.
>> Learn: Is Now a Good Time to Purchase a Home?
What sellers ought to do proper now
- In the event you’re promoting in a purchaser’s market: Promoting turns into tougher when stock is excessive and demand is low. Properties have a tendency to sit down in the marketplace longer — in actual fact, the common residence right this moment takes over 50 days to promote, and almost half have sat for 60+ days. To draw consumers, sellers ought to worth competitively and stay versatile.
- In the event you’re promoting in a vendor’s market: This can be a nice time to promote. Properties usually transfer shortly, and competitors amongst consumers can result in a number of affords, bidding wars, or affords above asking worth. With excessive demand and restricted stock, sellers have the higher hand and usually tend to get favorable phrases, together with waived contingencies and minimal concessions.
>> Learn: Ought to I Promote My Home Now?
The way to inform in case you’re in a purchaser’s or vendor’s market
Even when the nationwide housing market favors consumers or sellers, particular person cities and areas normally range broadly. Typically, even adjoining neighborhoods can have fully totally different tendencies. That’s why it’s necessary to do your analysis to grasp which manner your market leans.
Listed here are just a few methods to remain forward of the competitors.
Test the Redfin Knowledge Middle
Redfin publishes its consumers vs sellers dynamics analysis to the Redfin Knowledge Middle for public viewing. On the dashboard, you may see whether or not the nationwide housing market — and any of the 50 largest metros — leans towards consumers or sellers. This can be a good approach to get a baseline image of the housing market, however it could not mirror your neighborhood or embrace your metropolis. That’s the place extra analysis and perception is available in.
Speak with an area agent
Native actual property brokers know their market finest. They’ve up-to-date information on how lengthy houses are sitting in the marketplace, whether or not sellers are chopping costs, and the way aggressive affords are. An skilled agent can inform you if consumers have the higher hand or if sellers are nonetheless in management, and show you how to make knowledgeable selections in your neighborhood.
Analysis housing stock
A standard approach to gauge which manner a market leans is to take a look at “months of provide” — the variety of months it could take for out there stock to promote on the present fee. Provide under 4 months tends to favor sellers, whereas provide above 5 months tends to favor consumers. Redfin publishes this knowledge on the Redfin Knowledge Middle for each metropolis and metropolitan space within the nation.
Monitor sale worth tendencies
Worth development typically accelerates throughout a vendor’s market and cools throughout a purchaser’s market, generally even inflicting residence costs to fall. If costs are rising and present no indicators of slowing down, you possibly can be in a vendor’s market.
Take a look at mortgage charges
Mortgage charges play an enormous position within the housing market. Usually, the upper the charges, the much less consumers store for houses, making sellers extra determined for affords. That is the case right this moment, which is placing consumers within the driver’s seat.
Wanting ahead
Financial uncertainty continues to throw a wrench into the housing market, with inflation, tariffs, and immigration coverage all taking part in a task. Homebuilding can be costlier than ever, placing strain on the nation’s getting older housing inventory.
However there are positives on the horizon. Partly as a result of housing prices are so excessive and so few houses are promoting, worth development has slowed considerably — and in some locations, it’s falling. Plus, mortgage charges are holding at latest lows, which can assist carry somewhat life again to the housing market.
The extended vendor’s market is over, so severe consumers with the finances might wish to act now whereas competitors is low.
Methodology
Primarily based on a November 2025 Redfin report. All knowledge covers the interval of October 2025 and is seasonally adjusted, relationship again to 2013. Please see this text for the complete methodology.
