The US housing market finally supports home buyers, but it can hardly afford it
The spring buying season is going well and it’s weird. There are more homes for sale than many years have passed, but few people are selling them because of the high prices. Sellers find that they are no longer in charge and offer many concessions.
It’s a sharp turnaround from the boom of the pandemic era. At the time, remote work and ultra-low mortgage rates distorted the housing market from a balanced seller market. By 2021, buyers had surpassed 900,000 sellers, fueling the bidding war and increasing prices.
But the power has changed. According to Redfin, home sellers began to outperform buyers in the second half of 2023 after mortgage rates rose in the second half of the two years.
Nationwide, it is now a market for buyers. However, trends vary from city to city. Trends vary from city to city as high prices and borrowing costs continue to curb demand. Here’s what you need to know about the buyer seller and seller market, how to tell which market you are in, and where you have the most leverage right now.
What are the buyer market and the seller market?
Buyer’s Market
One of the signs of the buyer’s market is when supply (the number of homes listed in the market) exceeds demand (the number of buyers looking for a home). In this case, the buyer is more likely to drive negotiations and receive concessions.
In the buyer’s market, home prices often cool. This ironically helps to promote competition and bring the pendulum back to the seller.
Seller’s Market
When demand exceeds supply, a seller’s market often arises. Buyers outperform sellers, create more competition and promote a war of bidding. Sellers usually lead the negotiations and see the house being sold to ask the above.
Home prices tend to rise in the seller’s market.
The best buyer market in 2025
Sellers outperform the most buyers in these 10 metros and give buyers more leverage.
As home buyers were looking for warmer climates and affordable prices, the Sunbelt – a city that stretches southeast to southwest – boomed during the pandemic. As a result, home construction has increased, but many homes are currently struggling to sell. Fast prices, climate risks and mountaineering insurance costs have led to a decline in buyer demand. Florida’s residential inventory reached its highest level this year.
The best seller market in 2025
Buyers outperform the most sellers on these metros. This means that sellers may be able to get a higher selling price than neutral markets. Redfin defined the “sellers’ market” as at least 10% outperforming the sellers, with only 7 meters cutting.
The Rust Belt – cities in the Midwest and Northeastern countries – have built the fewest homes since the pandemic. Now, when people look to the area for the homes they can buy, supply is far below what they need and what they’re pushing up prices. Newark, for example, rose 12.2% year-on-year to reach the record high of $635,000 in April.
How to tell if you are in the buyer or seller’s market
Even if the national housing market prefers buyers and sellers, individual cities and regions usually vary widely. Even adjacent areas can have completely different trends. That’s why it’s important to do your research to understand how your market leans.
Talk to your local agent
Local real estate agents know the market best. They have the latest knowledge of how long the home is sitting in the market, whether sellers are cutting prices, and how competitive a competitive offer is. Experienced agents can help you know whether the buyer is dominant, whether the seller is still in control, and help you make informed decisions in your neighborhood.
Check your home inventory
One common way to measure how you tilt towards the market is the “month of supply,” that is, the number of months it takes for your available stock to sell at the current rate. Supplies for less than four months tend to support sellers, while supplies for more than five months tend to support buyers.
Track sales price trends
Price growth often accelerates within the seller’s market, cools down within the buyer’s market, and sometimes even lowers home prices. If prices are rising and there are no signs of slowing down, you’re probably in the seller’s market.
Look at the mortgage fees
Mortgage fees play a major role in the housing market. Typically, the higher the price, the more the buyer makes the house shop and the seller desperately trying to make more offers. This is the case today, with the buyer in the driver’s seat.
What buyers should do in the buyer and seller market
In the buyer’s market, this is the ideal time for buyers to move if they can afford it. Home prices can fall, listings will stay in the market for longer and sellers will likely negotiate. To close the transaction, it may include price reductions, seller concessions, or repairs. With less competition, buyers have more leverage to ensure a good home at a better price. In the seller’s market, sellers have an advantage and the competition between buyers can be fierce. The home is sold quickly and often attracts multiple offers. If you are buying in the seller’s market, act quickly and be prepared to make a powerful offer. If you try to negotiate aggressively, it can cost your home.
>>Read: Is this the best time to buy a house?
What sellers should do in the buyer and seller market
In the buyer’s market, sales are more difficult when inventory is high and low demand. Houses tend to sit in the market for a long time. In fact, the average home today takes more than 40 days to sell, with nearly half sitting for over 60 days. To attract buyers, sellers need to compete for competitive prices and maintain flexibility. In the seller’s market, this is the best time to sell. Houses usually move quickly, and competition between buyers can lead to multiple offers, bid wars, or offers above the asking price. With high demand and limited inventory, sellers are more likely to have an advantage and gain favorable conditions, such as unforeseen circumstances and minimal concessions.
>>Read: Should I sell my house now?
I’m looking forward to it
Economic uncertainty continues to throw wrenches into the housing market as tariffs, volatile stock markets and inflation all play a role. Home construction is more expensive than ever, and it is unlikely that this year’s mortgage rate will fall.
But there is a plus on the horizon. In some cases, prices have started to level out, as housing costs are so high and fewer homes are for sale, and in some places it is falling. Redfin predicts that it will fall nationwide by the end of the year. Sellers are also increasingly contracting at mortgage rates of 6% or more, helping to improve inventory.
With the long-term seller market over, serious buyers with budgets may want to act now while competition is low.
Methodology
Based on the May 2025 Redfin report. All data covers the period April 2025 and is seasonally adjusted, dating back to 2013. See the original report for the complete methodology.
