For years, sellers have had the upper hand in the housing market. With limited homes available and high demand, buyers faced fierce competition just to have their offers considered. But now, inventory is increasing, and a shift is happening in many areas.
So, is the market finally finding its balance? And does that mean buying might get a little easier? Here’s what you need to know.
What Defines a Buyer’s Market vs. a Seller’s Market? It all boils down to the supply of homes compared to the demand for them. This balance ultimately determines who holds the power.
A Seller’s Market occurs when there are more buyers than homes for sale. Sellers are in control, and this leads to rising prices, multiple offers, and homes often selling above the asking price due to high competition.
A Buyer’s Market happens when there are more homes than buyers. In this scenario, the tables turn. Sellers may have to offer concessions or negotiate more to close a deal. Buyers have more options and can take their time before making a decision.
You can see these market dynamics in action with data from the National Association of Realtors (NAR) in the graph below:
Although many areas are still in a seller’s market, buyers in certain locations are gaining more leverage than they’ve had in years. This shift is largely due to the rise in inventory. As Lance Lambert, Co-Founder of ResiClub, puts it:
“Among the nation’s 200 largest metro areas, 41 markets ended January 2025 with more active homes for sale than they had in pre-pandemic January 2019. These are the areas where homebuyers will find the most leverage or market balance in 2025.”
Here’s a snapshot of where the strongest seller’s and buyer’s markets stand today, based on that data:
Do you know how to adjust your strategy based on who has the upper hand? A skilled agent does.
Whether you’re in a seller’s or buyer’s market, a local real estate expert can help. Clever strategies can make buying in a seller’s market easier, and vice versa. That’s why you need a pro by your side. A great agent knows their market inside and out and can help you navigate the supply and demand dynamics to ensure you get the best deal.
With their expertise, you’ll be prepared to buy or sell, no matter what the market is doing.
Bottom Line
As inventory continues to rise, the market may be starting to balance out—but it all depends on where you’re buying or selling.