In a market shock, the US housing market is witnessing a transformation unlike anything seen in the last decade.
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For the first time since 2013, sellers outnumber buyers, leaving half a million more homes on the market than there are home purchasers.
Data from Redfin reveals this remarkable development, marking a stark deviation from the seller’s paradise of recent years.
As of April 2025, approximately 500,000 more properties are listed than there are buyers willing to purchase.
This surplus, the largest on record, has many wondering if a buyer’s market is finally here.
Despite this shift, one might expect home prices to drop significantly.
However, they’ve continued to rise, reaching a record median of $414,000.
Mortgage rates hover near 7%, deterring many potential buyers.
Yet many sellers continue to hope for high returns on their properties, leading them to offer price cuts and concessions as homes remain unsold.
Sellers have been slow to adjust to the market’s new dynamics.
The Bank of America survey shows that 75% of potential buyers are waiting for prices and rates to decrease.
With elevated mortgage rates keeping many at bay, buyers are at their scarcest since April 2020.
“Based upon previous spring selling seasons, I have noticed a lot of listings are sitting longer on the marketplace (this year),” said real estate agent Karen Pohl, cited by The New York Post.
She believes sellers need to get realistic about pricing to stay competitive.
The surge in listings is the largest since March 2020.
Many Americans face challenges, including stagnant wages and a lack of affordable housing.
Only 21.2% of home listings were affordable for those earning $75,000 to $100,000 annually.
Factors like economic uncertainty and high home prices contribute to this mismatch between sellers and buyers.
Biggest mismatch in a decade:
Sellers now outnumber buyers by nearly 500,000 in the U.S. housing market pic.twitter.com/U3q2ezJHkw
— TFTC (@TFTC21) May 30, 2025
While six of the top 10 buyer’s markets are in Florida, Newark, NJ remains a top seller’s market, with buyers outnumbered nearly 2 to 1.
The unexpected shift in the housing market serves as a wake-up call for Americans.
With the current trajectory, sellers must adapt to changing tides. As buyers stand firm, waiting for relief in prices and rates, the housing market’s equilibrium remains tentative.
