Panic is sweeping through the U.S. housing market as recent data reveals that only seven metropolitan areas are currently classified as sellers’ markets. The remainder of the country is experiencing a significant shift toward a buyers’ market, indicating that house prices may soon decline across most regions.
Nationwide, there are approximately 37 percent more sellers than buyers, marking the widest gap in a decade. This imbalance suggests a trend where price cuts are likely to become more prevalent. The seven remaining sellers’ markets are concentrated in the Northeast and Midwest, with one exception on the West Coast. In particular, Nassau County, New York, stands out as the strongest sellers’ market, where buyers outnumber sellers by nearly 40 percent. This translates to about 140 active buyers for every 100 homes listed for sale. Other notable sellers’ markets include Montgomery County, Pennsylvania, Newark and New Brunswick, New Jersey, along with San Francisco, California, Milwaukee, Wisconsin, and Cleveland, Ohio.
Factors Influencing Market Dynamics
The areas maintaining a sellers’ advantage share common characteristics, including stable job markets and tight housing supplies. These factors help sustain demand even as national conditions cool. Many of these regions are more affordable compared to major urban centers, attracting buyers who may be priced out of core cities.
Milwaukee realtor Ben Ambroch noted that, despite the favorable data for sellers, the market feels more balanced than skewed. He emphasized the importance of pricing, stating that sellers are often reluctant to sell unless they receive offers that meet their financial expectations. Ambroch added that with mortgage rates stable, Milwaukee is likely to maintain a balanced market, highlighting its affordability and low climate risk as appealing factors for relocating buyers.
Conversely, many markets in the Sun Belt are experiencing a downturn. Rising inventories and slower price growth in states like Florida and Texas are shifting power to buyers, particularly in cities that overdeveloped during the pandemic. For instance, Austin and Nashville now have over 100 percent more sellers than buyers, a troubling indicator for those regions.
Looking Ahead: Economic Implications
The current market dynamics echo conditions observed during the 2008 financial crisis, according to Asad Khan, senior economist at Redfin. He pointed out that a similar pattern occurred when inventory surged due to foreclosures and demand weakened, giving buyers significant leverage.
Despite these challenges, Khan expressed a cautiously optimistic outlook for 2026, suggesting that improved housing affordability could encourage some buyers to re-enter the market. Nevertheless, he warned that the housing market is likely to remain in a buyers’ territory for the foreseeable future, with sellers compelled to reduce prices or offer concessions to attract buyers.
As the situation unfolds, many homeowners may find themselves facing declining equity, particularly those who purchased at high prices in recent years. The evolving landscape of the U.S. housing market will require buyers and sellers alike to stay informed and adaptable to shifting conditions.
