It's A Buyer's Market: Redfin Reports There Are 34% More Sellers In The Market Than Buyers

An estimated 1.9 million home sellers are currently in the U.S. housing market, outweighing the 1.5 million home buyers, according to a new report from Redfin RDFN. Not since 2013 have home sellers outnumbered home buyers by this much, making it a strong buyer's market.

The report, which was released at the end of May and compiled from data gathered at the end of April, found that there are 33.7% more sellers than buyers, up from the 6.5% difference in sellers and buyers a year earlier. There have not been this many houses on the market since March 2020.

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"The balance of power in the U.S. housing market has shifted toward buyers, but a lot of sellers have yet to see or accept the writing on the wall. Many are still holding out hope that their home is the exception and will fetch top dollar," Redfin Senior Economist Asad Khan said in a statement. "But as sellers see their homes sit longer on the market and notice fewer buyers coming through on tour, more of them will realize that the market has adjusted and reset their expectations accordingly."

As a result of this imbalance, Redfin predicts a 1% drop in home prices year over year by the end of 2025. Annual price growth for homes on the market has already slowed to 1.6% from 6.2% last spring, and the real estate company expects this trajectory to continue. 

Increases in mortgage rates are partially to blame for the market shift, Redfin says. Sellers began outnumbering buyers in November 2023, when mortgage rates peaked at almost 8%. Buyer demand has been sluggish since, and will likely continue thanks to economic uncertainties and recession fears.

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Overall, 31 of the 50 most populous metros in the U.S. are buyer’s markets. These markets are largely concentrated in the Sun Belt and on the West Coast, with Miami; West Palm Beach, Florida; and Fort Lauderdale, Florida experiencing the strongest imbalances between buyers and sellers. 

Meanwhile, East Coast and Midwest markets tend to be either balanced markets or seller's markets. 

"Different markets are balanced for different reasons," Khan said. "In Cincinnati, homebuyer demand is stronger than the national average, perhaps due to the relatively low cost of housing. At the same time, listings are rising, mirroring the national trend. Together, these forces are creating a balanced market. In Chicago, demand is weak, mirroring the national trend. But inventory is also weak, which creates balance in another way."

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The type of property also has a major impact on ease of sale. According to the report, the condo market is tilted strongly in favor of buyers, with 83.5% more sellers than buyers. Single-family homes have 27.8% more sellers than buyers, and townhouse sellers outnumber buyers by 33%.

"It has absolutely shifted to a buyer's market, which means house hunters have a lot more options—and room to negotiate," said Tim Harper, a Redfin Premier agent. "That's why it's important for sellers to make sure their home is in tip-top shape. We're frequently recommending sellers do a lot of cosmetic repairs and maintenance to get buyers' attention and stand out from the crowd. And of course, don't overprice."

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