The real estate market is seeing a shift in supply and demand that favors buyers.
A report by real estate brokerage Redfin stated that the number of available homes exceeds the number of active buyers by 500,000. This is the largest disparity in the seller-to-buyer ratio since 2013. As a result, housing costs are estimated to decline by 1% “year over year,” Redfin predicted.
Senior Economist Asad Khan spoke about the disadvantages for current sellers. Although the market was steadily growing, with housing prices up 4.1% in January 2024, sellers will likely have to make concessions in this uneven market.
“The balance of power in the U.S. housing market has shifted toward buyers, but a lot of sellers have yet to see or accept the writing on the wall. Many are still holding out hope that their home is the exception and will fetch top dollar,” Khan said. “But as sellers see their homes sit longer on the market and notice fewer buyers coming through on tour, more of them will realize that the market has adjusted and reset their expectations accordingly.”
New listings hit their highest level in nearly 3 years
Some are selling because they believe home prices will start declining, and some see the surge in inventory and want to get their home on the market before there’s more competition
https://t.co/YkJtXjxmtj #housing pic.twitter.com/jKQhyDPCL6
— Redfin (@Redfin) May 24, 2025
Nearly half of all properties currently listed, 44%, have been on the market for 6 months or more. Experts caution sellers that holding on to property is not in their best interest. Many single-family properties are overpriced. As potential homeowners are now spoiled for choice, those homes will be more difficult to offload.
Economic fear and uncertainty are causing many Americans to keep a tight hold on their purse strings. The average salary in the country is $59,428, making the option of buying a half-million-dollar home out of reach for many. The average cost of a home in 2025 is $416,900, which is out of range for the average citizen. Perhaps these new developments will create space in the market for a working-class buyer making smaller wages. Redfin projects the high supply will give an edge to potential.
“Your purchasing power will increase if home prices fall, wages rise, and mortgage rates remain steady as expected. Homes that would have been out of reach six months ago may come into reach as sellers entertain lower offers and concessions.”
RELATED CONTENT: Former Chicago Bulls Player Luol Deng Surpasses Net Worth Of Top NBA Starts Through Successful Real Estate Company
