If you’re navigating today’s housing market, you may be wondering what it actually means to be in a buyer’s market. A buyer’s market occurs when the number of homes for sale is greater than the number of active buyers, giving buyers more options and less competition. Rising inventory levels, relaxed pricing, and fewer bidding wars shift the balance of power away from sellers.
This change is important for both sides of the deal. Buyers often have negotiating leverage, from securing price reductions to requesting repairs and concessions, while sellers may need to adjust their prices and expectations to remain competitive. Whether you live in a home in Los Angeles or a condo in Miami, understanding how inventory, price trends, and negotiation dynamics impact your local market can help shape your next move. In this Redfin real estate article, we team up with Michal Clements of Insight to Action to break down how a buyer’s market works and what it means for you.
What is a buyer’s market?
A buyer’s market exists when the supply of housing exceeds the demand. In this situation:
Homes sell more slowly Price reductions become more common Buyers have more bargaining power
This is the opposite of a seller’s market, where demand outstrips supply and homes often sell quickly for more than the asking price. A balanced market is somewhere between these two, with relatively stable inventories and prices.
Buyer’s Market Balanced Market Seller’s Market Market Conditions Supply exceeds demand Supply and demand are balanced Demand exceeds supply Downward pressure or stability in pricing. Common concessions Stable upward trend. limited concessions
Most people don’t buy or sell often, so they don’t always have an intuitive sense of current market conditions. The average homeowner holds a property for about 12 years. This means that even repeat buyers may find themselves in a situation that is very different from their last transaction.
Signs you’re living in a buyer’s market
Several measurable indicators can help determine whether conditions are favorable to the buyer.
Increasing inventory Increasing median days on market Increasing markdowns Increasing seller concessions Increasing months of supply
Two additional considerations are important. These are the differences between visible and non-visible indicators and variations between regional markets.
stock level
Inventory measures the number of homes currently for sale. Increased inventory often indicates decreased competition among buyers.
According to FRED data (Federal Reserve Bank Economic Data from the Federal Reserve Bank of St. Louis), the overall U.S. housing inventory has declined sharply (more than 50%) since COVID-19 and bottomed out in 2022 (compared to 2017). As you can see from the chart below, housing inventory increased from these lows from 2024 to 2025. Inventory levels in Q1 2026 are roughly flat (up 9%) compared to Q1 2025.
What this means is that first-time homebuyers face an overall increase in supply from 2023 onwards, while repeat and experienced homebuyers face a situation where, despite the increase in supply in 2024 and 2025, total supply is likely to be lower than when they last bought before COVID-19.
“In Carson City, Nevada, we find that new construction homes are priced similarly to established homes with comparable square footage and conditions,” says Michael Clements. “With more new construction entering the market, buyers have more options and less need to act quickly.”
Median days on market
The average number of days a home stays on the market reflects how long it takes for a home to sell. Nationwide, this number has risen in recent years, indicating a slowing pace of sales.
A relevant metric is the percentage of homes that go under contract within a week. This decline in “instant sales” suggests fewer bidding wars and less pressure to make quick decisions.
“If only a small percentage of properties go under contract right away, buyers have more choice,” Clements says. “This typically reflects soft demand relative to supply.”
Months of supply
Months of supply measures how long it will take to sell the current inventory at the current sales pace.
Common benchmarks:
More than 6 months: Buyer’s market 4-5.9 months: Balanced market Less than 4 months: Seller’s market
National numbers are fluctuating and local conditions vary widely. Buyers should look at data specific to metropolitan area and property type.
price reduction
Price reductions are one of the most visible signs of changes in leverage. A high percentage of homes sold below list price may indicate less control by sellers.
Homes that remain on the market longer are more likely to be depreciated, especially if the original price is higher than comparable sales prices.
“In a recent example, a home sold for more than 10 percent below the original asking price after being on the market for several months,” Clements said. “Giving time may strengthen the buyer’s bargaining position.”
seller’s concession
Seller concessions, such as covering closing costs or providing repair credits, can indicate increased flexibility.
Currently, nationally, a significant proportion of transactions involve concessions, but rates vary widely by metropolitan area. In some cities, more than half of sales include some kind of seller incentive.
“Concessions mean just as much as price reductions,” Clements said. “We are increasing affordability for buyers while maintaining headline prices.”
Visible and hidden signs of a buyer’s market
Some signals are easy to identify, such as a longer listing period or a lower public price. Additional information, such as concession trends and bidding activity, may require insight from a local real estate agent.
Buyers should ask:
What are the current months of supply in this area? Are concessions common? How often do situations with multiple offers occur?
Understanding both visible and intangible indicators will give you a clearer picture of the true market situation.
market fluctuations
Market trends vary by region and type of property. Some metro areas show stronger signs of buyer-friendly conditions than others, while certain segments such as condos may have more months of supply than single-family homes within the same market.
These fluctuations highlight the importance of analyzing regional data rather than relying solely on national trends.
Compare market conditions at a glance
Buyer’s Market Balanced Market Seller’s Market Supply Exceeds Demand Balanced Demand Exceeds Supply Months of Supply 6+ 4–5.9 Under 4 Immediate Sales Low Moderate Bidding Wars Less Common Occasional Frequent Negotiations Powerful Buyers Shared Sellers
How a buyer’s market affects home buyers
Recognizing favorable conditions for buyers creates a strategic advantage.
Potential benefits include:
More time to compare properties Increased likelihood of inspection contingencies Increased bargaining power Increased opportunities for concessions
However, the following risks remain:
Prices may continue to fall after purchase Local economic conditions may weaken demand Price increases may slow in the short term
Buyers must balance short-term pricing opportunities with long-term affordability and stability.
What will happen to home prices in a buyer’s market?
Home prices do not fluctuate uniformly across the market. While some metro areas have seen prices fall from their recent peaks, others have seen stabilization rather than significant declines.
Additionally, home prices tend to fall “stickily”, meaning sellers are often reluctant to accept significant losses. As a result, adjustments may occur through concessions or longer listing periods rather than deep price reductions.
“Prices typically stabilize before a big decline,” Clements said. “Sellers often compete through incentives before lowering list prices.”
Buyers should also expect price appreciation to slow as conditions remain favorable to buyers for an extended period of time.
Is it a good time to buy in a buyer’s market?
Whether it’s the right time to buy depends on your financial preparedness and long-term goals.
Strong Points
Increased inventory Reduced competition Increased bargaining power
Cons
Possible short-term price declines Increased financing costs Broad economic uncertainty
Long-term ownership periods help reduce short-term volatility.
Strategies for buyers in a buyer’s market
Get pre-approved, but don’t rush
Mortgage pre-approval strengthens your credibility even when competition is low. At the same time, more inventory often allows for more prudent decision-making.
Create offers based on data
We use comparable sales, days on market, and listing history to determine if an offer below listing is legitimate.
maintain a state of testing emergency;
Terms that are favorable to the buyer usually give them leeway to maintain contractual protections.
Repair and credit negotiation
Inspection results may be used to assist with repair requests and closing costs.
Focus on overall affordability
Evaluate taxes, insurance, HOA fees, and maintenance costs alongside the purchase price.
Seller’s strategy in a buyer’s market
competitive pricing
Pricing too high can extend your time on the market and weaken your bargaining position.
improve your presentation
Professional photography, direction, and accurate listing descriptions can help you stand out in a competitive inventory environment.
offer targeted concessions
Credit and interest buybacks can attract buyers without a significant price reduction.
stay flexible
Flexible closing timelines may be attractive to buyers managing contingencies and lease transitions.
Comparison of buyer’s market and seller’s market
Understanding whether it’s a buyer’s or seller’s market can help you set realistic expectations regarding pricing, competitiveness, and bargaining power before making your next move.
Buyer’s Market Seller’s Market Inventory High Low Competition Low High Price trends Stabilize or decline Increased bargaining power Buyers Sellers Buyer behavior Slow pace, many contingencies Fast pace, few contingencies Seller’s strategy Competitive pricing, concessions Firm pricing, selective offers
Understanding whether terms favor buyers or sellers can help determine pricing expectations, negotiation strategies, and timing of next actions.
