For years, sellers have had the upper hand in the housing market. With so few homes for sale and so many people who wanted to purchase them, buyers faced tough competition just to get an offer accepted. But now, inventory is rising, and things are starting to shift in many areas.
So, is the market finally balancing out? And does that mean buyers will have it a bit easier now? Here’s what you need to know.
What Makes It a Buyer’s Market or a Seller’s Market?
It all comes down to how many homes are for sale in an area compared to how many buyers want to buy there. That’s what ultimately determines who has the most leverage.
- A Seller’s Market is when there are more buyers than homes available, so sellers hold the power. This leads to rising prices, multiple offers, and homes selling quickly – often above the asking price – because there isn’t enough to go around.
- A Buyer’s Market is when there are more homes than buyers. In this case, the tables turn. Sellers may have to offer concessions and incentives, or negotiate more to get a deal done. That’s because buyers have more choices and can take their time making decisions.
You can see this play out over time using data from the National Association of Realtors (NAR) in the graph below:
Where the Market Stands Now
While it’s still a seller’s market in many places, buyers in certain locations have more leverage than they’ve had in years. And that’s thanks to how much inventory has grown lately. As Lance Lambert, Co-Founder of ResiClub, explains:
“Among the nation’s 200 largest metro area housing markets, 41 markets ended January 2025 with more active homes for sale than they had in pre-pandemic January 2019. These are the places where homebuyers will be able to find the most leverage or market balance in 2025.”
Here’s a look at some of the strongest seller’s markets and buyer’s markets today, according to that research:
| Inventory | +30 – 40% |
| Pending Sales | +2 – 5% |
| Sold Properties | -12 – 15% |
| Median Sold Price | +4 – 7% |
| Months’ Inventory Supply | 3.6 to 3.9 months |
Closer To Home
In our five-county area (Merced, Madera, Fresno, Tulare, and Kings counties), here’s what we know (February Y-O-Y):
Although the above ranges account for an average of all price points and communities, the most consistent numbers are with the increases in inventory and the growing months’ supply of inventory (MSI 3.6 – 3.9).
MSI = If no more homes were listed, how long would it take at the pace of current sales for all of the inventory to be absorbed?
Bottom Line
As this number continues to move towards 4-5 months’ supply, the trend is that we are getting to a balanced market and I’m always happy to share the details.
Let’s talk about it. Contact Me!
