For several years, home sellers have held the advantage in the U.S. housing market. Tight inventory drove prices higher and fueled bidding wars, leaving buyers with few options. Now, however, new conditions are giving buyers more leverage than they’ve had in quite some time.
According to Zillow data, housing inventory is up 17% year-over-year, the highest level since 2019. More homes on the market mean sellers face increased competition, while buyers have greater choice. Prices remain elevated compared to pre-pandemic levels, but appreciation has largely stalled, and mortgage rates are slightly lower than they were a year ago.
“We’re starting to see sellers make concessions,” said Kara Ng, senior economist at Zillow. “There’s more competition because listings are lingering. Sellers need to work harder now.”
Homes that do sell still move relatively quickly, typically in about 17 days, but that’s four days longer than last year — a sign that the red-hot pace of recent years is cooling. At the same time, many homeowners who once hesitated to sell because of their ultra-low pandemic-era mortgage rates are realizing those rates aren’t coming back. Job changes, family needs, and other life events are forcing more sellers to enter the market.
For buyers, this means a chance to negotiate. Price reductions are becoming more common, especially in markets like Florida and Texas, where inventory is especially high. Buyers can sometimes secure help with closing costs, mortgage rate buydowns, or additional price cuts.
Despite these shifts, affordability remains a major obstacle. Zillow’s research shows the typical buyer now needs to earn nearly $100,000 a year to comfortably afford the median-priced U.S. home at $369,000. Five years ago, median earners could afford homes in 39 major metro areas. Today, that number has dropped to just 11.
Markets like Cleveland and Pittsburgh remain relatively affordable, while places such as San Jose and San Francisco are far out of reach for many households.
Sellers aren’t entirely losing ground. Many purchased their homes before or during the early days of the pandemic and locked in historically low rates, giving them strong equity positions. Rather than continue cutting prices, some are choosing to pull their homes off the market and wait for conditions to improve. Others are opting to rent out their homes instead of selling.
“Sellers are in a pretty good place financially,” Ng explained. “Unless there’s a life event driving the decision, some are saying, ‘maybe this isn’t the year.’”
For sellers who remain, the key is presentation. With inventory rising, buyers are looking closely at listings. Experts recommend high-quality photography, staging, and even 3D or video tours to help homes stand out.
The bottom line: the U.S. housing market is no longer the runaway seller’s market it once was. Instead, it’s moving toward something closer to balance — with buyers finally seeing opportunities they haven’t had in years.
