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A Surplus of Sellers, a Shortage of Buyers
The U.S. housing market is showing signs of imbalance, and not in sellers’ favor. Nearly $700 billion worth of homes are currently listed for sale across the country—a record-breaking figure that reflects growing supply, stubbornly high prices, and fading demand.
But here’s the twist: almost half of that housing inventory has gone stale, sitting unsold for more than 60 days. This is the clearest sign yet that the market is shifting, and fast.
Data from Redfin shows there are roughly 1.9 million home sellers compared to only 1.5 million buyers in the market right now. That’s a gap of nearly half a million. Just two years ago, buyers outnumbered sellers. Now, sellers dominate by over 33%. The result? Homes are lingering on the market, price cuts are becoming more common, and the days of bidding wars may be over—for now.
Stale Listings Are Stacking Up
In April 2025 alone, 44% of active listings had sat on the market for over two months. That’s nearly $331 billion worth of unsold homes, the highest share of stale inventory since the early pandemic days of 2020. At the same time, the total value of homes for sale jumped 20.3% year over year—more because of volume than rising prices. New listings are flooding the market, but buyers are backing off.
Why? Rising monthly payments are a key culprit. With the average 30-year mortgage rate holding around 6.7%, many would-be buyers are waiting on the sidelines. Even though home prices have barely ticked up—rising just 1.4% year over year—record-high housing costs and economic uncertainty are enough to spook the market.
How the Tables Turned So Fast
Rewind to early 2022 and the picture was wildly different. Mortgage rates were near 3%, supply was tight, and homes flew off the market in less than a month. Today, the average time for a home to go under contract has stretched to 40 days. Buyers are taking their time. And many aren’t buying at all unless they absolutely must.
The shift is partly due to what economists call the “mortgage rate lock-in” effect. During the pandemic, millions of homeowners secured ultra-low interest rates and held off selling. Now, life changes—like job moves or divorce—are pushing some of those people to list, even if it means taking on a much higher rate. As more of these sellers enter the market, supply keeps rising while demand lags behind.
The Reality Check Is Setting In
Many sellers have been slow to accept the market shift. Redfin reports that some still cling to peak-pandemic pricing expectations, hoping their homes are the exception. But as listings sit unsold, those hopes are fading. Increasingly, sellers are lowering prices, offering concessions, or pulling their homes off the market altogether.
Redfin economists expect home prices to decline about 1% by the end of 2025. That might not seem like much, but for buyers, even small price drops can improve affordability—especially if wages continue to rise and interest rates hold steady. For sellers, though, time is not on their side. The longer a listing lingers, the more leverage buyers gain.
Signs Point to a Buyer’s Market
All the signs suggest a buyer’s market is taking hold. More supply, less demand, and longer listing times are classic signals of downward pressure on prices. The last time sellers so heavily outnumbered buyers was in late 2018. Within months, home price growth slowed dramatically.
Now, that dynamic is back—only this time, the gap between buyers and sellers is even wider. Homes aren’t just sitting longer; they’re also facing a new kind of scrutiny from choosier buyers. Redfin agents say more deals are falling through, with even serious buyers walking away mid-contract.
What This Means for Buyers and Sellers
For sellers, it may be time to adjust expectations. If your home has been on the market more than a month with little activity, consider a price reduction or a few upgrades. Waiting could mean missing your chance to sell before prices cool further.
For buyers, patience might pay off. As more homes stay on the market longer, sellers are increasingly willing to negotiate. While housing affordability remains a challenge, falling prices and rising wages could open new doors—especially if mortgage rates remain stable.
The market is still in motion, but one thing is clear: the days of easy home sales are over. Sellers may still be listing in record numbers, but buyers are the ones holding the cards.
