There were an estimated 46.3 percent more home sellers than buyers in the U.S. housing market in February (or 629,808 more, in numerical terms), according to a report from Redfin.
Redfin says that’s the largest gap in records dating back to 2013 and is up from 29.8 percent (or 449,409) a year earlier and defines a market with over 10 percent more sellers than buyers as a buyer’s market. By this definition, it has been a buyer’s market since May 2024.
Of course, Redfin suggests it’s only a buyer’s market for those who can afford to buy. High housing costs and economic uncertainty have caused many house hunters to retreat, creating an imbalance of buyers and sellers.
“We’re seeing a lot more inventory on the market compared to the past two years because the mortgage rate lock-in effect is easing and there’s a lot of new construction,” Justin Gomez, a Redfin Premier real estate agent in Nebraska (Omaha), said in the report. “This has been great for affordability, especially for the younger crowd. Our median home price is in the low $300,000 range. Two years ago, people were offering $15,000 over the asking price just to get a home, with multiple offers everywhere.”
The number of homebuyers in the market fell 2.4 percent month-over-month in February to an estimated 1.36 million. The number of sellers posted a smaller decline, falling 0.4 percent to an estimated 1.99 million.
Homebuyers are retreating due to high home prices and mortgage rates, layoffs, and mounting economic and political uncertainty, according to Redfin. The retreat in buyers has caused some sellers, many of whom are buyers themselves, to retreat. Some sellers are delisting after watching their homes sit on the market, while others are choosing not to list at all after seeing nearby homes sell for below the asking price.
Redfin reported earlier this month that relistings are beginning to rise, which could boost housing supply. New listings are also starting to climb slightly, posting their second straight week of increases after four months of declines.
The strongest buyer’s market in February was Miami, which had an estimated 163 percent more sellers than buyers. Next came Nashville (120 percent), Austin, Texas (112 percent), West Palm Beach, Fla. (110 percent) and San Antonio (104 percent).
Redfin also reported the strongest seller’s market in February was Newark, N.J., which had an estimated 31.1 percent fewer sellers than buyers. The other four seller’s markets were Montgomery County, Pa. (-29 percent) Nassau County, N.Y. (-25.8 percent), Milwaukee (-25.2 percent) and New Brunswick, N.J. (-14.5 percent).
On average, home prices rose 2.2 percent year-over-year across the five seller’s markets in February, compared with a 0.3 percent increase across the 37 buyer’s markets — an indication that buyer’s markets offer house hunters more leverage.