"The U.S. housing market is tightening, but not in the way sellers hoped. With mortgage rates hovering near 6.3%, affordability remains stretched, and the demand is thinning. A growing imbalance between sellers and buyers is pushing the market decisively into buyer-friendly territory, and the cycle is showing late-stage strain. Home prices surged during and after the pandemic as ultra-low rates, remote work, and migration fueled demand."
"The imbalance is now significant. According to Redfin, in December, there were 47% more home sellers than buyers nationwide. It was the widest gap since records began in 2013. By definition, it makes it a buyer's market. Buyers have more options and a greater ability to negotiate on price, repairs, and concessions. The largest gap is in the Sun Belt - especially the markets that had the highest supply growth during the Pandemic era."
Mortgage rates near 6.3% have kept affordability strained and thinned demand, shifting the market toward buyers. Median U.S. home price reached $410,000 in Q2 2025, about 27% above 2019, but price growth has slowed sharply since 2023. Increased listings and a widening seller-buyer imbalance—47% more sellers than buyers nationwide in December—give buyers greater negotiating leverage on price, repairs, and concessions. The largest imbalances appear in Sun Belt markets such as Austin, Fort Lauderdale, and Nashville, while parts of the Northeast and Midwest remain closer to balanced or seller-friendly. Ten-year Treasury yields near or above 4% help keep mortgage rates elevated.
Read at Benzinga
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