Housing markets where homebuyers are gaining power heading into spring 2026

"When assessing home price momentum, believes it's important to monitor active listings and months of supply. If active listings start to rapidly increase as homes remain on the market for longer periods, it may indicate pricing softness or weakness. Conversely, a rapid decline in active listings beyond seasonality could suggest a market that is heating up. Since the national Pandemic Housing Boom fizzled out in 2022, the national power dynamic has slowly been shifting directionally from sellers to buyers."

"Generally speaking, local housing markets where active inventory has jumped above pre-pandemic 2019 levels have experienced softer home price growth (or outright price declines) over the past 36 months. Conversely, local housing markets where active inventory remains far below pre-pandemic 2019 levels have, generally speaking, experienced more resilient home price growth over the past 36 months. Where is national active inventory headed? National active listings are on the rise on a year-over-year basis (+12.1% between December 2024 and December 2025). This indicates that homebuyers have gained some leverage in many parts of the country over the past year."

Monitoring active listings and months of supply is crucial for assessing home price momentum. Rapid increases in active listings combined with longer time on market indicate pricing softness, while rapid declines beyond seasonality suggest a heating market. Since the 2022 end of the Pandemic Housing Boom, the national dynamic has been shifting from sellers toward buyers, with local variation. Markets with active inventory above pre-pandemic 2019 levels generally experienced softer price growth or declines over 36 months; markets with inventory below 2019 levels saw more resilient growth. National active listings rose 12.1% year-over-year but remain 5.5% below December 2019.

Read at Fast Company