Is the U.S. housing market finally turning in favor of buyers? With headlines touting rising listings and growing price cuts, some suggest the market is cooling. But a closer look at the numbers tells a different story: in most parts of the country, it’s still a seller’s market—thanks to one persistent problem—a massive housing supply gap.
The Myth of the Buyer’s Market
According to Yahoo Finance, there are now 500,000 more homes for sale than active buyers. Sounds like good news for buyers, right?
Not so fast.
That stat is national, and it doesn’t reflect where the inventory gains are occurring—or how long they’ll last. Redfin data shows that while more homes are available, many sellers are still pricing aggressively, and buyers remain highly selective.
Inventory Is Rising, But Unevenly
Realtor.com reports that the U.S. has just crossed 1 million active listings for the first time since 2019. But that’s still 12.3% below pre-pandemic levels, and growth is largely confined to a handful of Sun Belt and Western markets like Florida, Texas, and Arizona.
In contrast, the Midwest and Northeast remain undersupplied, with active listings well below historic norms. In these markets, competition remains fierce, and homes priced right are selling quickly.
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Home Prices Are Slowing—Not Crashing
Price growth has cooled, but it hasn’t reversed. The S&P CoreLogic Case-Shiller Index shows U.S. home prices rose 3.9% year-over-year in February. Redfin predicts a modest 1% dip by year-end.
In a true buyer’s market, prices typically fall across most regions. That’s not happening yet.
Mortgage Rates Add Pressure—But Not Enough to Tip the Market
With 30-year mortgage rates hovering in the upper 6% range, some buyers are backing off. But many homeowners are also staying put, unwilling to give up their lower rates—leading to what experts call the “lock-in effect.”
That means fewer new listings, tighter supply, and continued leverage for sellers.
Regional Breakdown: Who Has the Power?
- Sellers still rule in the Northeast and Midwest, where inventory is below normal.
- Buyers gain leverage in parts of the South and West, where overbuilding has met softer demand.
- Nationally, most metrics still favor sellers—even if the market is becoming more balanced than in past years.
Conclusion: Don’t Be Fooled—This Is Still a Seller’s Market
Despite the noise, 2025 is not a buyer’s market—at least not yet. Yes, inventory is up. Yes, buyers are more selective. But with supply still below demand in most of the country, sellers hold the upper hand, especially in tight local markets.
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