Home Sellers Now Outnumber Buyers by 47%: What It Means for Prices

Core Insights - The U.S. housing market is experiencing a significant imbalance, with 631,535 more home sellers than buyers in December, marking a 47% gap, the widest since 2013, and an increase of over 22 percentage points from the previous year [2][9] - Despite the surplus of sellers, home prices continue to rise, with existing-home prices increasing for the 30th consecutive month to a median of $405,400 in December [5][8] - The housing market's slowdown could negatively impact overall economic growth by reducing construction, home improvement spending, and consumer mobility [4] Market Dynamics - The increase in sellers provides more options for buyers, yet many still find housing unaffordable due to mortgage rates above 6% throughout 2025 [3] - Both buyers and sellers are retreating from the market, with Redfin estimating only 1.34 million homebuyers in December, the lowest on record [6] - Inventory levels remain tight as homeowners are hesitant to list their properties, leading to a slight increase in existing home sales by 5.1% compared to November, although sales remain near decades-low levels [7] Regional Variations - The best markets for buyers are located in the South and West, particularly in Texas and Florida, where there is a higher concentration of sellers [10] - In contrast, some areas like Nassau County, NY, and Milwaukee show a buyer advantage, with buyers outnumbering sellers by 33% in Nassau County [9][10]