Homebuyers gain the upper hand as sellers swamp the market
Sellers in the U.S. housing market are outnumbering buyers by a large margin, giving potential buyers who were in the market negotiating power. But it's not making a dent in the affordability crisis.
In December, there were an estimated 47.1% more home sellers than buyers in the U.S. housing market, which is the largest gap in records since 2013, according to a recent report from Realtor.com. That's up 7.1% from a month earlier, which was also the largest increase since September 2022. It's also up 22.2% from a year earlier.
Meanwhile, during that same month, the number of homebuyers fell 5.9% month over month to an estimated 1.34 million, making the largest drop since March 2023 and the lowest level in records dating back to 2013, according to the report.
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While sellers have also been backing out of the market, it's slim in comparison. Sellers in the market fell 1.1% month over month to an estimated 1.97 million.
Realtor.com defines a buyer's market as one where there are over 10% more sellers than buyers. By this definition, it has been a buyer's market since May 2024, meaning buyers have had stronger negotiating power.
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But that doesn't mean its affordability has eased for those still seeking to move. It's only a buyer's market for those that can still swallow the high borrowing and housing costs.
These high housing costs, layoffs and mounting political and economic uncertainty are still forcing many house hunters to retreat, creating an imbalance of buyers and sellers.
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Some sellers have delisted their homes after they sat on the market for months with no activity.
1. Austin, Texas: There were an estimated 128% more home sellers than buyers in December, which was the largest imbalance.
2. Fort Lauderdale, Florida: There were an estimated 125% more home sellers.
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3. Nashville, Tennessee: There were an estimated 111% more home sellers.
4. Miami, Florida: There were an estimated 103% more home sellers.
5. San Antonio, Texas: There were an estimated 103% more home sellers.