Redfin reports that only five metro areas are seller’s markets, most of which are located in the Northeast. The South and West are home to the strongest buyer’s markets.

There were an estimated 44% more home sellers than buyers in the U.S. housing market in January (or 600,314 more, in numerical terms), according to a new report from Redfin, the real estate brokerage powered by Rocket. That’s up from 30% more a year earlier and represents the second largest gap in records dating back to 2013. The largest gap was in December 2025, when sellers outnumbered buyers by 45%.

Redfin defines a market with over 10% more sellers than buyers as a buyer’s market. By this definition, it has been a buyer’s market since May 2024.

When sellers outnumber buyers, buyers typically hold the negotiating power because they have a lot of options to choose from. That’s why a market with a lot more sellers than buyers is considered a buyer’s market. Of course, it’s only a buyer’s market for those who can afford to buy. High housing costs and economic uncertainty have caused many house hunters to retreat, creating an imbalance of buyers and sellers.

Number of Homebuyers Drops to Lowest Level on Record

The number of homebuyers in the market fell 1% month over month and 8% year over year in January to an estimated 1.36 million—the lowest level on record.

The number of sellers in the market fell 1% month over month to an estimated 1.96 million. That’s the largest decline since June 2023 and the lowest level since February 2025. On a year-over-year basis, the number of sellers rose 2%.

Homebuyers are backing off due to stubbornly high home prices and mortgage rates, layoffs, and mounting economic and political uncertainty. Winter storms also swept much of the U.S. in January, which may have dampened sales. Sellers, many of whom are buyers themselves, are backing off in response to lackluster demand for their homes. Some sellers are delisting after watching their homes sit on the market for months with zero bites from buyers, while others are choosing not to list at all after seeing nearby homes sell for below the asking price.

There Are Only Five Seller’s Markets

The strongest seller’s market in January was Newark, NJ, which had an estimated 31% fewer sellers than buyers. The other four seller’s markets were Nassau County, NY (-29%), Milwaukee (-26%), Montgomery County, PA (-26%) and New Brunswick, NJ (-17%). Redfin analyzed the 50 most populous U.S. metropolitan areas.

“Two things are fueling Milwaukee’s seller’s market: a drop in mortgage rates and a lack of inventory,” said local Redfin Premier real estate agent W.J. Eulberg. “Mortgage rates are lower than they were six months ago and a year ago, which has brought buyers back into the fold. And while listings are creeping back up, we still have less than three months of supply. That means buyers don’t have a lot of homes to choose from, which is driving up prices and competition.”

The median home sale price in Milwaukee rose 11% year over year in January—the largest increase among the top 50 metros.

On average, home prices rose 5% year over year across the five seller’s markets in January, compared with a 3% gain across the six balanced markets and a 1% increase across the 39 buyer’s markets—an indication that buyer’s markets offer house hunters more leverage. Many of the nation’s buyer’s markets are in the Sun Belt or on the West Coast, while the balanced markets and seller’s markets skew more toward the Midwest and East Coast.

The Strongest Buyer’s Markets Are In the South

The strongest buyer’s market in January was Miami, which had an estimated 159% more home sellers than buyers. Next came Fort Lauderdale, FL (128%), Austin, TX (124%), Nashville (120%), and San Antonio (114%).

The Sun Belt skyrocketed in popularity during the pandemic, when scores of homebuyers moved in from more expensive parts of the country. To meet surging demand, homebuilders ramped up activity, which is one reason there are now a lot more homes for sale than people who want to buy them. The pool of buyers has also shrunk because soaring housing costs in recent years have priced many people out of the market.

New construction can have a significant influence on whether negotiating power lies with buyers or sellers because it impacts the balance of supply and demand. The Northeast and the Midwest have historically issued the fewest building permits, while the South and the West have issued the most.

Florida and Texas continue to build more homes than other states. Florida is also grappling with intensifying natural disasters, soaring insurance premiums and rising condo HOA fees, which has prompted some homeowners to leave. Miami, specifically, frequently shows up as a buyer’s market because it has a lot of housing supply, which could be in part due to the high number of condos.

To view the full report, including methodology, charts and full metro-level data, please visit:
https://www.redfin.com/news/buyers-vs-sellers-january-2025

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at https://www.redfin.com/news. For more information about Rocket Companies, visit https://www.rocketcompanies.com.

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