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4w ago

Record Seller Surplus Creates Rare Buyer’s Market in US Housing

Elevated mortgage rates have shrunk demand, spurring sellers to reduce prices, extend listing times, prepare for a slight home value decline.

A drone shows a view of new single family home construction in San Diego, California, U.S., March 25, 2025. REUTERS/Mike Blake/File Photo
Helicopter shot of residential streets in Montgomery County, Maryland, north of Washington, D.C. on a hazy afternoon in Fall.
Row houses are seen in the afternoon on a spring day on May 23, 2025, in Washington, DC.
A For Sale sign for a multi-million dollar residential home in Reno, Nevada on May 6, 2024.

Overview

  • As of April, there were roughly 1.9 million active listings versus 1.5 million buyers, creating a nearly 490,000-home surplus that marks the widest imbalance since 2013.
  • More than 44 percent of listings lingered on the market for over 60 days in April, and 44.4 percent of Q1 sales featured seller concessions like covering closing costs or funding repairs.
  • Pending home sales fell by 6.3 percent in April, representing the steepest monthly drop since September 2022, according to the National Association of Realtors.
  • The median existing-home price held at $431,931 in April, up 1.6 percent year over year, but analysts project an average 1 percent decline by the end of 2025.
  • Mortgage rates hovering around 7 percent continue to curb affordability, while in the condo market sellers outnumber buyers by 83 percent.