SEATTLE, WA — The U.S. housing market has shifted in favor of buyers for the first time in more than a decade, according to a recent report from Redfin. With 3.7 months of supply available in January—the highest level since February 2019—the market is showing signs of increased inventory and slowing sales, creating more opportunities for buyers. This marks a notable change from the seller-dominated conditions of recent years.
Key indicators suggest the market is tilting toward buyers. Pending home sales dropped 6.3% in January, hitting their lowest level since April 2020. Homes spent an average of 56 days on the market—the longest period since February 2020. Additionally, the typical home sold at a 1.8% discount below the final asking price, the steepest price reduction in nearly two years.
“Historically, a buyer’s market has been defined as when months of supply reaches 4–6 months—but old definitions don’t fit the reality of today’s market,” said Chen Zhao, Redfin Economics Research Lead. “Many buyers don’t feel like they are in a buyer’s market, with home prices at near-record highs and mortgage rates elevated. But we are more than halfway through the decade and this is the first time we can say that buyers have as much, if not more, power than sellers.”
The median U.S. home price rose just 4.1% in January year-over-year, marking its slowest growth rate since September. Additionally, the report highlighted a surge in canceled home purchases, hitting the highest January cancellation rate since at least 2017.
Regional Trends Show Diverging Conditions
The shift to a buyer’s market is most pronounced in Sun Belt metros, where inventory has climbed substantially. Cape Coral, FL, topped the list with 11.6 months of supply in January, followed by Miami (11.4 months), McAllen, TX (10.5 months), and Fort Lauderdale, FL (10.3 months). Florida’s high supply levels stem from a construction boom during the pandemic, combined with cooling demand due to affordability challenges and higher insurance costs from natural disasters.
“It’s 100% a buyer’s market right now,” said Bryan Carnaggio, a Redfin Premier agent in Jacksonville, FL. “There’s a ton of inventory. Everywhere you go, there’s a house for sale. Most sellers here know the market is bad and it’s not advantageous to sell right now, but either they’re tired of waiting for things to improve, or they really have to sell because they are moving out of state. For buyers, this means there are more opportunities to negotiate on price and terms.”
By contrast, the Northeast remains largely a seller’s market. Rochester, NY, had just 1.1 months of supply in January, followed by Buffalo, NY (1.2 months) and Hartford, CT (1.4 months). Limited inventory in these areas is keeping competition strong, with homes in sought-after neighborhoods commanding multiple offers and selling above asking price.
Outlook for Buyers and Sellers
The current market dynamics offer buyers greater flexibility and negotiation power than at any point in recent years, though high mortgage rates and near-record prices remain hurdles. For sellers, the landscape is far less favorable, requiring strategic pricing and patience.
Looking forward, Zhao cautioned that these conditions may not last. “More buyers may start to move off the sidelines when they realize there’s more inventory available,” Zhao said. This potential surge in demand could tighten supply and shift the balance again, requiring both buyers and sellers to act decisively in navigating a fast-evolving market.a
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