Is the Housing Market Still Favoring Sellers? Mid-Year Outlook (2025)
As we hit the mid-point of 2025, the U.S. housing market is experiencing a subtle but significant shift. After years of seller dominance fueled by limited inventory and low mortgage rates, new data shows that buyers may finally be gaining ground. But is the market truly flipping in their favor—or are we just entering a more balanced phase?
Let’s break it down.
Inventory Is Rising—And That’s Changing the Game
One of the clearest signs of a market shift is the increase in housing inventory. According to recent reports, active listings have reached their highest levels in over a decade, with available inventory totaling more than $700 billion in value.
More homes on the market mean buyers have more options—and that weakens the urgency and power sellers previously enjoyed. For comparison, in many metro areas like Phoenix, Austin, and Denver, the ratio of sellers to buyers has reached levels not seen since 2013. In fact, some analysts are calling it a "buyer-leaning" market in over half of U.S. metros.
Overpricing Is Backfiring on Sellers
Although home prices are still relatively high (median sale prices are hovering around $430,000), sellers who list too aggressively are seeing fewer results. On average, listings are priced about $25,000 above their final sale prices, and over 35% of sellers are cutting their asking prices—a sharp rise from just a year ago.
Buyers today are more cautious, more budget-conscious, and less likely to get into bidding wars. Homes that are overpriced or in need of work are staying on the market longer. Some listings are going stale—with time on the market exceeding 60 days in cities like Denver.
Homes Are Sitting Longer
During the pandemic housing boom, a well-priced home could sell in under a week. Today, the national average time on market is about 50–60 days, a clear sign that buyer urgency has faded.
Buyers now have the luxury of shopping around and negotiating harder, especially with more homes to choose from.
Mortgage Rates Still a Drag on Demand
Despite improving inventory, mortgage rates remain in the mid-6% range. That’s a far cry from the sub-3% era we saw during the pandemic. High rates are keeping many first-time buyers on the sidelines and locking in current homeowners who don't want to give up their low-interest loans.
This “lock-in effect” is preventing a full return to a buyer’s market. Until mortgage rates decline substantially—possibly with expected Fed rate cuts later in the year—the market is likely to remain in flux.
It’s All About Location
While nationally the market appears to be shifting, conditions vary dramatically by region:
Seller’s Markets still exist in areas with low new construction and high job growth (e.g., parts of New Jersey, Southern California, and Florida).
Buyer’s Markets are emerging in cities with heavy inventory and price corrections (e.g., Austin, Las Vegas, and Denver).
This regional divide means buyers and sellers alike need to understand their local dynamics—not just national headlines.
What This Means for Buyers and Sellers
For Buyers:
More choices: There’s less competition and more room to negotiate.
Watch the rates: Locking in a mortgage at the right time is key.
Don’t rush: Take time to compare properties and ask for concessions.
For Sellers:
Price it right: Overpricing will stall your sale and lead to price cuts.
Presentation matters: Staging and curb appeal are more important than ever.
Act soon if you must sell: Market conditions may continue softening, especially if rates fall and more sellers enter the market.
Final Take: A More Balanced Market Ahead?
While we’re not in a full buyer’s market yet, the seller advantage is clearly waning. The mid-year 2025 housing outlook reveals a market in transition—no longer red-hot, but not cold either.
It’s becoming a balanced market, where both buyers and sellers must come to the table prepared, realistic, and well-informed.
