Across the Buyer’s Market, a growing imbalance between home sellers and buyers is shifting negotiating power firmly toward buyers. In January, there were an estimated 600,000 more sellers than buyers, giving house hunters unprecedented leverage in pricing discussions. This dynamic is reshaping the housing market in most regions.

Only five metro areas are considered seller’s markets, primarily in the Northeast. Meanwhile, Southern and Western metros show the strongest buyer’s markets, reflecting abundant inventory and slower buyer demand. The overall U.S. housing market had 44% more sellers than buyers, up from 30% a year earlier and representing the second-largest gap on record.

Understanding Buyer’s Market Conditions

A market with over 10% more sellers than buyers is defined as a buyer’s market, while the opposite creates a seller’s market. Balanced markets fall within ±10%. Since May 2024, the U.S. has largely been in a buyer’s market. When sellers dominate, buyers gain negotiating power because options are plentiful. However, affordability and high costs continue to limit the pool of potential buyers.

Estimates of buyers rely on Redfin data regarding the time from a first home tour to closing, combined with MLS data on active listings and pending sales. Sellers are counted based on active listings in the MLS. Median-sale price data are seasonally adjusted and may be revised, providing a snapshot of market trends.

Homebuyer Numbers Drop to Record Lows

In January, the number of homebuyers fell 1% month-over-month and 8% year-over-year to an estimated 1.36 million—the lowest on record. Sellers decreased slightly to 1.96 million, marking the largest monthly decline since June 2023 but remaining 2% higher than the previous year.

Economic uncertainty, high home prices, rising mortgage rates, layoffs, and winter storms have driven many potential buyers from the market. Sellers are responding to weak demand by delisting homes or refraining from listing, while some accept below-asking-price sales after extended market exposure.

Only Five Seller’s Markets Remain

The strongest seller’s markets include Newark, NJ; Nassau County, NY; Milwaukee, WI; Montgomery County, PA; and New Brunswick, NJ. In Milwaukee, low inventory combined with declining mortgage rates has fueled competition, pushing median prices up 11% year-over-year—the largest gain among the top 50 U.S. metros. On average, seller’s markets saw 5% price growth, balanced markets 3%, and buyer’s markets just 1%, highlighting the leverage buyers enjoy in surplus-seller regions.

The South and West Lead Buyer’s Markets

Miami tops the list of strongest buyer’s markets, with 159% more sellers than buyers, followed by Fort Lauderdale (128%), Austin (124%), Nashville (120%), and San Antonio (114%). Pandemic-driven migration to the Sun Belt and West has increased inventory, while high home prices have reduced the number of active buyers.

New construction in Southern and Western states, particularly Florida and Texas, continues to expand housing supply, sustaining buyer leverage. In Miami, high condo inventory, rising insurance premiums, and HOA fees contribute to the persistent buyer’s market, giving purchasers more options and negotiating power.