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…