Number Of Homebuyers Falls To Record Low

The number of homebuyers in the market dropped 5.9% month over month in December to an estimated 1.34 million. That's the largest drop since March 2023 and the lowest level in records dating back to 2013.

Sellers have also been retreating, but not as quickly. The number of sellers in the market fell 1.1% month over month to an estimated 1.97 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 buyers fell 11.8%, and the number of sellers rose 3.9%.

Homebuyers are backing off due to stubbornly high home prices and mortgage rates, layoffs and mounting economic uncertainty. As of early February 2026, rates were hovering above 6%. 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.

Sun Belt Cities Show Biggest Imbalances

In Austin, TX, there were an estimated 128% more home sellers than buyers in December, the largest imbalance among the 50 most populous metros. Next came Fort Lauderdale, FL (125%), Nashville (111%), Miami (103%) and San Antonio (103%).

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 home prices in recent years have priced many people out of the market.

Texas and Florida 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.

Overall, 36 of the 50 most populous metros were buyer's markets in December, nine were balanced markets and five were seller's markets. The buyer's markets are concentrated in the Sun Belt, while the balanced markets and seller's markets skew more toward the Midwest and East Coast.

Toni Cusack

About Toni Cusack

Latest Articles by Toni Cusack

Home Sellers Outnumber Buyers by Record Margin, Creating Buyer's Market