US Housing Market Sees 44% More Sellers Than Buyers, Shifting Power Dynamics
A significant imbalance between home sellers and buyers has fundamentally shifted the landscape of the United States housing market, according to a recent analysis from the real estate brokerage Redfin. In January, there were approximately 600,000 more home sellers than buyers across the nation, representing a substantial gap of 44%. This disparity marks the second-widest spread since Redfin began tracking this data in 2013, surpassed only by December 2025, when sellers exceeded buyers by 45%.
Buyer-Friendly Territory Emerges Nationwide
By Redfin's established measure, any market with more than 10% extra sellers qualifies as a buyers' market. Using this yardstick, the entire country has been in buyer-friendly territory since May 2024. This shift has granted those still shopping for homes added leverage and negotiating power. When listings significantly outpace demand, buyers typically gain the upper hand because they can afford to be more selective and patient in their decisions.
Redfin estimates there were about 1.36 million buyers in January, which represents a 1% decrease from December and an 8% decline from a year earlier. This figure makes it the lowest level on record for buyer activity. Concurrently, the number of sellers also dipped 1% month over month to 1.96 million, marking the steepest monthly decline since June 2023 and the smallest total since February 2025. However, compared with a year ago, sellers were actually up by 2%.
Factors Driving the Market Imbalance
A combination of elevated mortgage rates, expensive home prices, layoffs, and broader economic and political unease has sidelined many would-be buyers, contributing to this pronounced imbalance. At the same time, some homeowners have withdrawn listings after months without receiving offers, while others have hesitated to test the market after observing nearby properties trading below asking prices.
Only five of the 50 largest US metropolitan areas qualified as sellers' markets in January. Newark, New Jersey, led this list with an estimated 31% fewer sellers than buyers. Nassau County, New York, followed closely at minus 29%, along with Milwaukee and Montgomery County, Pennsylvania, both at minus 26%, and New Brunswick, New Jersey, at minus 17%.
Milwaukee's Unique Seller's Market Conditions
In Milwaukee, a tighter supply has kept competition brisk and sustained a seller's market. "Two things are fueling Milwaukee's seller's market: a drop in mortgage rates and a lack of inventory," explained local Redfin Premier agent W.J. Eulberg in the report. "Mortgage rates are lower than they were six months ago and a year ago, which has brought buyers back into the fold. And while listings are creeping back up, we still have less than three months of supply. That means buyers don't have a lot of homes to choose from, which is driving up prices and competition."
Milwaukee's median sale price climbed 11% from a year earlier in January, representing the largest increase among the top 50 metropolitan areas. Across the five sellers' markets, prices rose an average of 5% year-over-year. This compares with a 3% gain in the six balanced markets and a mere 1% increase in the 39 buyers' markets, providing clear evidence that softer demand is tempering price growth in much of the country.
Regional Variations and Market Concentrations
Many of the most buyer-friendly markets are concentrated in the Southern regions and along the West Coast, while tighter conditions persist in parts of the Midwest and Northeast. Miami posted the widest buyer advantage, with 159% more sellers than buyers. Fort Lauderdale followed at 128%, then Austin at 124%, Nashville at 120%, and San Antonio at 114%. This regional distribution highlights how geographic factors and local economic conditions continue to shape housing market dynamics across the United States.
