The tables are turning in the U.S. housing market, and this time, buyers are calling the shots.
There are an estimated 1.9 million homes for sale across the country, but only about 1.5 million active homebuyers. That leaves a gap of nearly 500,000 — the largest on record, according to Redfin.
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“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,” said Redfin Senior Economist Asad Khan. “Many are still holding out hope that their home is the exception and will fetch top dollar.”
U.S. home prices were still up 3.9% year over year in February — a slight dip from January’s 4.1% gain — but a growing supply of homes and easing mortgage rates are cooling the market, according to the S&P CoreLogic Case-Shiller Home Price Index.
That’s left some sellers — especially those who bought at the peak — trying to recoup their investment just as buyer demand starts to slow. With listings rising and buyers getting more selective, the big question is: Is now the best time to sell?
A shift in control
Redfin economists expect home prices to dip by about 1% by the end of 2025. Demand is already down. Sales of existing homes fell 1.1% year over year in April, hitting a six-month low.
Buying a home remains a major financial leap. With economic uncertainty fueled by tariffs, layoffs and shifting federal policies, many would-be buyers are hitting pause on one of life’s biggest purchases.
Sellers are already feeling the sting. Take a single-family home in Sonoma, California: once listed for over $3.5 million during the pandemic boom, the 3-bedroom, 4-bathroom property eventually sold for $1.86 million — nearly half its original price.
The home saw several price cuts before it sold in April for 6.8% below its most recent $1.995 million asking price, according to Zillow, as reported by Newsweek.
That sale reflects how far the market has come from its 2021 peak. Back then, rock-bottom mortgage rates and limited inventory fueled bidding wars and drove up prices. But now, things look different.
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The balance tips further
If you’re thinking about selling, don’t wait too long. Listing sooner could help you avoid chasing a cooling market. And if your home’s already listed and not getting much attention, it may be time to switch gears — whether that means adjusting your asking price or making small, high-impact upgrades to help it stand out.
Many homeowners are still pricing based on what they paid during the market’s pandemic-era peak, not what today’s market will bear.
“A lot of the people selling right now bought in 2021 or 2022, when home prices were near their height,” said Corey Stambaugh, a Redfin Premier agent in North Carolina. “Even though we advise them to list at today’s market value, a lot of them decide to list high to recoup their money.”
But overpricing your home isn’t just wishful thinking — it can be a costly mistake. Properties that sit too long tend to raise red flags to buyers, giving them more leverage to negotiate.
For buyers, the market is starting to tilt in your favor, but that doesn’t mean you shouldn’t go in unprepared. Getting pre-approved can make you a stronger buyer and help you stay realistic about what you can actually afford. When you’re ready to make an offer, negotiate like your rent just went up. You might be able to ask for repairs, appliances or even that oddly charming mid-century credenza in the living room.
Whether you’re buying or selling, the key is knowing when to move — and not being afraid to play a little hardball when the timing’s finally on your side.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
