Homebuyers gain the upper hand as sellers swamp the market

Core Insights - The U.S. housing market is experiencing a significant imbalance, with sellers outnumbering buyers by a large margin, providing buyers with negotiating power, but not alleviating the affordability crisis [1][7] Market Dynamics - In December, there were approximately 47.1% more home sellers than buyers, marking the largest gap since 2013, and a 7.1% increase from the previous month, which is also the largest increase since September 2022, and a 22.2% increase year-over-year [2] - The number of homebuyers decreased by 5.9% month-over-month to an estimated 1.34 million, representing the largest drop since March 2023 and the lowest level recorded since 2013 [3] - The number of sellers in the market fell by 1.1% month-over-month to an estimated 1.97 million [4] Buyer Market Definition - Realtor.com defines a buyer's market as having over 10% more sellers than buyers, and it has been classified as such since May 2024, indicating stronger negotiating power for buyers [6] Affordability Issues - Despite the buyer's market conditions, high housing costs, layoffs, and political and economic uncertainties continue to deter many potential buyers, maintaining an imbalance in the market [7] Regional Insights - The strongest buyer markets in December included: 1. Austin, Texas: 128% more home sellers than buyers 2. Fort Lauderdale, Florida: 125% more home sellers 3. Nashville, Tennessee: 111% more home sellers 4. Miami, Florida: 103% more home sellers 5. San Antonio, Texas: 103% more home sellers [10]