Homebuyers gain the upper hand as sellers swamp the market

• The market has been classified as a 'buyer's market' (over 10% more sellers than buyers) since May 2024, though high borrowing costs limit affordability for most potential buyers
• Buyer-seller imbalance jumped 22.2% year-over-year and 7.1% month-over-month, marking the largest monthly increase since September 2022
• Austin, Texas showed the most extreme buyer's market with 128% more sellers than buyers, followed by Fort Lauderdale (125%) and Nashville (111%)

Market Summary: U.S. Housing Market Shifts to Strong Buyer Advantage

Key Market Dynamics

The U.S. housing market has experienced a significant power shift, with sellers outnumbering buyers by 47.1% in December 2024—the largest gap since records began in 2013, according to Realtor.com. This represents a 7.1% month-over-month increase (the largest since September 2022) and a 22.2% year-over-year surge.

Critical Data Points

Buyer Activity: The number of homebuyers fell 5.9% month-over-month to an estimated 1.34 million in December, marking the largest decline since March 2023 and the lowest level on record since 2013.

Seller Activity: Home sellers declined only 1.1% month-over-month to approximately 1.97 million, creating a substantial imbalance.

Market Classification: The market has been classified as a "buyer's market" (defined as 10%+ more sellers than buyers) since May 2024.

Geographic Hotspots

The strongest buyer markets include:

• Austin, Texas (128% more sellers than buyers)
• Fort Lauderdale, Florida (125%)
• Nashville, Tennessee (111%)
• Miami, Florida (103%)
• San Antonio, Texas (103%)

Market Implications

Despite increased negotiating power for buyers, affordability remains a critical barrier. High borrowing costs, elevated housing prices, layoffs, and political/economic uncertainty continue to sideline potential buyers. Many sellers have delisted properties after months of inactivity. The market favors only those buyers capable of absorbing high costs, indicating the affordability crisis persists despite favorable buyer conditions.