U.S. Housing Market Has 500,000 More Sellers Than Buyers

The balance of power in the U.S. housing market has shifted — and buyers are gaining the upper hand.

Sales of existing homes fell 1.1% in April from the year prior, marking a six-month low.

An estimated 1.9 million homes are currently listed for sale across the country, but only about 1.5 million active buyers remain in the market. That leaves a record gap of nearly 500,000, according to Redfin data reported by Victoria Vesovski for Moneywise.

“The balance of power in the U.S. housing market has shifted toward buyers, but a lot of sellers have yet to see or accept the writing on the wall,” said Redfin Senior Economist Asad Khan.

“Many are still holding out hope that their home is the exception and will fetch top dollar.”

U.S. home prices remained up 3.9% year-over-year in February, a slight dip from January’s 4.1% gain, according to the S&P CoreLogic Case-Shiller Home Price Index. But rising supply and easing mortgage rates are cooling the market.

Sellers, particularly those who bought near the peak, are now struggling to recoup their investments.

Sales of existing homes fell 1.1% in April from the year prior, marking a six-month low. Redfin projects that prices will decline roughly 1% by year’s end. Meanwhile, economic uncertainty — driven by tariffs, layoffs, and policy shifts — has many would-be buyers delaying their purchases.

One high-profile example: a single-family home in Sonoma, California, originally listed at over $3.5 million during the pandemic boom, eventually sold for just $1.86 million — nearly half its asking price.