Panic is escalating in the United States housing market as a new report reveals that only seven metropolitan areas currently favor sellers, with the vast majority entering a buyer’s market. This shift indicates a significant imbalance, as the number of homes for sale now exceeds potential buyers, allowing buyers to negotiate lower prices and favorable terms.
Nationwide data shows that there are approximately 37 percent more sellers than buyers, marking the largest gap in a decade. This trend strongly suggests that price reductions will become more common across the country. The seven remaining seller’s market areas are concentrated primarily in the Northeast and Midwest, along with one location on the West Coast.
Nassau County, NY, stands out as the strongest seller’s market, boasting around 40 percent more buyers than homes available. This equates to about 140 active buyers for every 100 homes listed for sale. Other areas that have retained seller-friendly conditions include Montgomery County, PA; Newark, NJ; New Brunswick, NJ; San Francisco, CA; Milwaukee, WI; and Cleveland, OH.
Market Dynamics and Local Trends
The continued strength of these specific markets can be attributed to stable job opportunities and limited housing supply, which keep demand relatively high even as broader market conditions soften. Many of these areas are also more affordable compared to major urban centers, attracting buyers who are priced out of core city locations. Additionally, these markets have not been heavily influenced by real estate investors, which helps maintain low inventory levels and gives sellers a competitive edge.
Milwaukee realtor Ben Ambroch commented on the city’s market, describing it as “more of a balanced market than a seller’s market” despite favorable data. He emphasized that sellers are often unwilling to sell unless they receive a price that ensures a manageable monthly payment. With the housing market expected to maintain stability, Ambroch believes Milwaukee will continue to favor sellers slightly compared to national trends.
In contrast, many regions in the Sun Belt are experiencing significant shifts. These areas, including Florida and Texas, are witnessing a surge in inventory and a slowdown in price growth, giving buyers increased negotiating power. Rising inventory levels, coupled with a cooling demand following the pandemic-driven buying frenzy, have led to more favorable conditions for buyers in states like Texas and Florida.
Future Outlook and Economic Implications
The situation has prompted concerns regarding broader economic implications. When supply outpaces demand, home prices tend to decline, leading to diminished equity for homeowners. In some cases, recent buyers find themselves “underwater,” meaning they owe more on their mortgages than their homes are worth. Cities such as Austin, San Antonio, Nashville, and Fort Lauderdale report over 100 percent more sellers than buyers, raising alarms about the overall health of the real estate market.
According to Asad Khan, a senior economist at Redfin, the current state of the housing market mirrors conditions seen during the financial crisis of 2008. He noted, “Back then, inventory piled up as foreclosures surged, and demand was weak, meaning buyers had negotiating power.” Despite the challenges, Khan maintains a cautiously optimistic outlook for 2026. He suggests that modest improvements in housing affordability could entice some homebuyers back into the market, potentially narrowing the gap between buyers and sellers.
Nevertheless, Khan warns that the housing market is likely to remain in buyer’s market territory for the foreseeable future, with sellers forced to cut prices or offer concessions to attract buyers. As the landscape continues to evolve, stakeholders in the housing sector will need to adapt to these shifting dynamics to navigate the challenges ahead.
