A growing gap between home sellers and buyers is reshaping the U.S. housing market.
In January, there were about 600,000 more sellers than buyers nationwide — a 44% difference — according to a new analysis by Redfin.
The New York Post reported that this represents the second-largest imbalance since Redfin began tracking the data in 2013, exceeded only in December 2025, when sellers outnumbered buyers by 45%.
Under Redfin’s definition, any market with at least 10% more sellers than buyers is considered a buyers’ market. By that standard, the U.S. has remained in buyer-friendly territory since May 2024.
The widening supply-demand gap has given active buyers more negotiating power. When listings substantially outnumber buyers, purchasers can afford to be more selective, often securing better terms.
Redfin estimates there were approximately 1.36 million buyers in January — down 1% from December and 8% year-over-year — marking the lowest level recorded.
The number of sellers also declined 1% from the previous month to 1.96 million, the steepest monthly drop since June 2023 and the lowest total since February 2025. However, seller numbers were still 2% higher than a year earlier.
High mortgage rates, elevated home prices, layoffs, and broader economic and political uncertainty have discouraged many potential buyers. Meanwhile, some homeowners have pulled listings after failing to attract offers, while others have hesitated to list after seeing nearby homes sell below asking price.
Only five of the 50 largest U.S. metropolitan areas qualified as sellers’ markets in January. Newark led with 31% fewer sellers than buyers, followed by Nassau County at 29%, Milwaukee and Montgomery County at 26%, and New Brunswick at 17%.
In Milwaukee, tighter inventory has kept competition strong. Redfin Premier agent W.J. Eulberg said the city’s seller-friendly conditions are being driven by slightly lower mortgage rates and limited housing supply. Although listings are gradually increasing, inventory remains below three months’ supply, sustaining price pressure and buyer competition.
Milwaukee recorded the largest price gain among the top 50 metros, with median sale prices rising 11% year-over-year in January.
Across the five sellers’ markets, home prices rose an average of 5% annually, compared with 3% growth in six balanced markets and just 1% in the 39 buyers’ markets. The data suggests weaker demand is slowing price appreciation in much of the country. Many of the strongest buyers’ markets are located in the South and along the West Coast, while tighter conditions persist in parts of the Midwest and Northeast.
Miami posted the largest buyer advantage, with 159% more sellers than buyers. Fort Lauderdale followed at 128%, then Austin at 124%, Nashville at 120%, and San Antonio at 114%.
