- There are 44% more home sellers than buyers nationwide, marking one of the largest gaps on record.
- Active homebuyer demand has fallen to its lowest level ever, pressured by high prices, mortgage rates, and economic uncertainty.
- Most buyer’s markets are concentrated in the South and West, while only a handful of Midwest and Northeast metros remain seller-friendly.
The U.S. housing market is tilting — and not subtly. In January, there were about 44% more home sellers than buyers nationwide, which translates to roughly 600,000 extra listings sitting on the market. That’s a sharp jump from a 30% gap a year earlier and marks one of the widest imbalances recorded since 2013. The only time it was worse? December 2025, when the gap briefly stretched to 45%.
By Redfin’s definition, a market becomes a buyer’s market when sellers outnumber buyers by more than 10%. We’ve been there since May 2024. When inventory piles up and demand pulls back, negotiating power shifts. Buyers gain options. Sellers, meanwhile, start adjusting expectations — sometimes reluctantly.
Of course, it’s only a buyer’s market if you can actually afford to buy. And that’s the catch. Elevated mortgage rates, stubborn home prices, layoffs, and general economic anxiety have pushed many would-be buyers to the sidelines. Some are waiting. Others are simply priced out.
Buyers Are Retreating
The number of active homebuyers fell to an estimated 1.36 million in January — the lowest level on record. That’s down 1% from the previous month and 8% from a year ago. The slowdown isn’t dramatic month to month, but the trend line is clear.
Winter storms likely didn’t help. Large parts of the country were buried in snow, which tends to freeze activity, literally and financially. But weather alone doesn’t explain it. Affordability remains the main pressure point.
Sellers, interestingly, are pulling back too. Active listings dropped 1% from December to about 1.96 million — the biggest monthly dip since mid-2023. Yet compared to last year, seller activity is still up 2%. Some homeowners are delisting after months without offers. Others see neighbors cutting prices and decide to wait it out. No one wants to be the one chasing the market down.
Only a Handful of True Seller’s Markets
Out of the 50 largest U.S. metro areas, only five currently qualify as seller’s markets. Newark, New Jersey, leads the pack, with 31% fewer sellers than buyers. Nassau County, Milwaukee, Montgomery County (PA), and New Brunswick round out the list.
Milwaukee stands out. Lower mortgage rates compared to six months ago have brought buyers back into motion, while inventory remains tight — under three months of supply. That imbalance has pushed median sale prices up 11% year over year, the strongest growth among major metros.
Across those five seller’s markets, prices rose about 5% annually in January. Compare that to just 1% growth in the country’s 39 buyer’s markets. Leverage matters. Where buyers have options, price growth cools — sometimes sharply.
The South Is Overflowing With Inventory
If you’re looking for negotiating power, head south. Miami currently tops the list of buyer’s markets, with 159% more sellers than buyers. Fort Lauderdale, Austin, Nashville, and San Antonio aren’t far behind.
During the pandemic, the Sun Belt exploded in popularity. Builders rushed to meet demand, issuing permits and constructing homes at a rapid pace. Now, that supply is still working its way through the system — but demand has softened. The math no longer favors sellers.
Florida adds another layer of complexity. Rising insurance premiums, condo HOA fees, and intensifying storm risks are nudging some homeowners to sell. Texas, meanwhile, continues to build aggressively. When supply expands faster than demand, balance shifts. Sometimes fast.
A Market in Transition
What we’re seeing isn’t a collapse, but it is a recalibration. Buyers are cautious. Sellers are adjusting. The imbalance between the two has reached levels rarely seen over the past decade.
Regional differences tell the real story. The Midwest and parts of the Northeast remain relatively tight, while the South and West are swimming in listings. Construction trends, migration patterns, and local economic forces all feed into this.
For now, the numbers are clear: buyers have the upper hand in most of the country. But in housing, as always, local conditions matter more than national headlines. And those conditions can shift — slowly, then suddenly.
