There were an estimated 47.1% more home sellers than buyers in the U.S. housing market in December (or 631,535 more, in numerical terms). That's according to a new report from Redfin. That's the largest gap in records dating back to 2013. It's up 7.1 percentage points from a month earlier, the largest monthly increase since September 2022, and up 22.2 percentage points from a year earlier.

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 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.

Some Markets Still Favor Sellers

Nassau County, NY was the strongest seller's market in December, with an estimated 33.4% fewer sellers than buyers. The other four seller's markets were Montgomery County, PA (-32.3%), Newark, NJ (-29.5%), Milwaukee (-26.1%) and New Brunswick, NJ (-19.3%).

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.

Home prices rose an average of 4.9% year over year across the five seller's markets in December, compared with a 3% gain across balanced markets and a 0.6% increase across buyer's markets, an indication that buyer's markets offer house hunters more leverage.

Agents Tell Sellers To Adjust Pricing Expectations

The changing market dynamics have led to some frank conversations between real estate agents and their clients.

"One of the things that I'm hearing a lot more anecdotally about is just that realtors are getting more aggressive about advising their clients to get more real on pricing," Marty Green, principal at mortgage law firm Polunsky Beitel Green, told Mortgage Professional America. "One of the things that we are starting to see is that if sellers are really wanting to move inventory, even if we have a more favorable rate environment, they're probably going to also have to do some at least modest price adjustments to get their houses sold."

Dallas had an estimated 86.8% more sellers than buyers in the market last month, one of the biggest imbalances among the 50 most populous U.S. metropolitan areas. That may be partly because the area has seen so much housing construction in recent years. The median home sale price in Dallas fell 7.6% year over year in December, the largest decline among the top 50 metros. Nationally, home prices rose 0.1%, the slowest growth since June 2023.

What Buyers Should Consider In This Market

Real estate professionals say buyers in the current market have opportunities they haven't seen in years. With 18 metros now featuring more than six months of supply, buyers don't need to rush into decisions or worry about getting outbid in multiple-offer situations.

Industry experts recommend that buyers negotiate more aggressively than they might have a year ago. That includes asking for price reductions, assistance with closing costs or repairs. Sellers who have had their homes listed for months may be open to concessions they would have rejected in a tighter market.

Agents are also pointing buyers toward new construction, where builders are trying to move inventory with rate buydowns and price cuts. In some markets, new homes are actually priced lower than existing homes.

While mortgage rates remain above 6%, real estate professionals say it's worth comparing offers from multiple lenders, as even small differences in rates and fees can add up to significant savings over the life of a loan. And with buyers holding more negotiating power, agents say it's important not to skip home inspections, buyers can walk away if major issues come up.

Sellers Face Tougher Competition

For sellers, real estate professionals say success in the current market requires adjusting strategies.

Agents emphasize pricing homes correctly from the start. Homes that sit on the market too long make buyers wonder what's wrong with them. Industry experts recommend looking at what similar homes in the neighborhood have actually sold for recently, not what sellers think their homes should be worth.

Real estate professionals also stress the importance of presentation. Professional photos, deep cleaning and small repairs can make a difference when buyers have dozens of options to choose from. Some agents recommend staging, particularly for homes that are empty or cluttered.

Offering incentives is another strategy agents are recommending. Things like covering some closing costs or contributing to rate buydowns can help listings stand out from the competition.

Agents warn that sellers should be prepared to negotiate more than they did a year ago. Real estate professionals recommend deciding ahead of time what concessions make sense and where the bottom line is.

Green suggested that waiting for ideal market conditions may not be the best strategy. "If we get some lower interest rates, that could moderate that price reduction a little bit more," Green said. "If you don't see interest rates come down, I would anticipate that we're going to continue to see some pricing pressure and to see prices moderate downward."

What's Ahead For The Housing Market

A record number of home-purchase agreements were canceled across the country at the end of 2025, suggesting affordability challenges continue to weigh on buyers. Some sellers are pulling their homes off the market after months without offers, while others aren't listing at all after watching nearby homes sell below asking price.

Green thinks pricing pressure will continue even if rates improve somewhat, given that buyers remain cautious while sellers keep competing. "I think cancellation rates are one of the reasons motivating the realtors to get people where they're happy with the pricing on the buyer's side," Green said. "And a reduced price, along with some other incentives, certainly gets them there."

For buyers who can afford to purchase, the current market offers more choices and more room to negotiate than they've had in years. For sellers, success means pricing competitively and finding ways to stand out in an increasingly crowded market.

How long the buyer's market will last remains to be seen. That depends on mortgage rates, economic conditions and whether more buyers regain confidence. For now, buyers hold the advantage.