The U.S. housing market finally favors homebuyers, but few can afford it
It’s a buyer’s market, meaning buyers have the upper hand. Following the pandemic-fueled seller’s market in 2021, sellers now outnumber buyers by over 500,000 – or 37% – due to two years of rising mortgage rates and home prices.
Affordability remains the sticking point for everyone, though: Most buyers can’t afford a home, which is leading to fewer sales, deterring home sellers, and slowing down an already sluggish market. You can see this in the data: Over the past six months, prices have risen while demand has dropped – almost the opposite of a typical trend.
So, where do we go from here? 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
A buyer’s market typically happens when there are more homes for sale than buyers to purchase them. When this is the case, buyers usually drive negotiations and are more likely to receive concessions.
Home price growth is typically lower in buyer’s markets than seller’s markets. But if a buyer’s market sees prices cool substantially, the pendulum may swing back toward sellers as more homebuyers come off the bench
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 also tend to rise more quickly and sell faster in seller’s markets.
>> Read: Disadvantages of Sellers Paying Closing Costs
The strongest buyer’s markets in 2025
Sellers outnumber buyers by the most in these ten metros, giving buyers more leverage. Redfin defined a “buyer’s market” as one where sellers outnumbered buyers by at least 10%.
The Sun Belt – cities stretching from the Southeast to the Southwest – is home to all of the nation’s strongest buyer’s markets. Austin took the top spot, ground zero for the cooldown sweeping pandemic boomtowns.
Florida and Texas in particular saw a surge in homebuilding during the pandemic, but many of these homes are now sitting unsold as buyers back off. Florida’s housing inventory reached its highest level on record this year, with demand dropping quickly due to rising prices, climate risks, and high insurance costs.
The strongest seller’s markets in 2025
In a handful of metros, buyers still outnumber sellers, giving sellers the edge. Redfin defined a “seller’s market” as one where the buyers outnumbered sellers by at least 10%, and only five metros made the cut.
The Midwest and Northeast are home to all of the remaining seller’s markets. New construction has lagged here, and with more people looking to move to the region for homes they can afford, supply is falling far short of what’s needed and pushing prices up.
What buyers should do right now
If you’re buying in a buyer’s market: This is the ideal time for buyers to make a move, if you 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 home at a better price.
If you’re buying in a seller’s market: Sellers hold the upper hand, and competition among buyers can be fierce. Homes often sell quickly and attract multiple offers, which can drive prices well 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.
>> Read: Is Now a Good Time to Buy a House?
What sellers should do right now
If you’re selling in a buyer’s market: Selling becomes more challenging when inventory is high and demand is low. Homes tend to sit on the market longer – in fact, the average home today takes 50 days to sell, and nearly half have sat for 60+ days. To attract buyers, sellers should price competitively and remain flexible.
If you’re selling in a seller’s market: This is a great time to sell. Homes typically move quickly, and competition among buyers can lead to multiple offers, bidding wars, or offers above asking price. With high demand and limited inventory, sellers have the upper hand and are more likely to get favorable terms, including waived contingencies and minimal concessions.
>> Read: Should I Sell My House Now?
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. Here are a few ways to do that.
Check the Redfin Data Center
Redfin publishes its buyers vs sellers dynamics research to the Redfin Data Center for public viewing. On the dashboard, you can see whether the national housing market – and any of the 50 largest metros – leans toward buyers or sellers. This is a good way to get a baseline picture of the housing market, but it may not reflect your neighborhood or include your city. That’s where additional research and insight comes in.
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.
Research housing inventory
A 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. Redfin publishes this data on the Redfin Data Center for every city and metropolitan area in the country.
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 could be 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.
Looking forward
Economic uncertainty continues to throw a wrench into the housing market, with a weak job market, tariffs, and immigration policy all playing a role. Homebuilding is also more expensive than ever, putting pressure on the nation’s aging housing stock.
But there are positives on the horizon. In part because housing costs are so high and so few homes are selling, price growth has slowed – and in some places, they’re falling. Plus, mortgage rates have dropped to recent lows, which may help bring life back to the housing market.
The prolonged seller’s market is over, so serious buyers with the budget may want to act now while competition is low.
Methodology
Based on an October 2025 Redfin report. All data covers the period of September 2025 and is seasonally adjusted, dating back to 2013. Please see this article for the full methodology.
