Redfin: U.S. Housing Market Seeing Many More Sellers Than Buyers

(Image courtesy of Redfin; Breakout image courtesy of RDNE Stock project/pexels.com)

Redfin, Seattle, reported there are currently 34% more sellers in the market than buyers, the highest gap in data going back to 2013.

That amounts to 1.9 million estimated sellers and 1.5 million buyers. This time last year, sellers outnumbered buyers by just 6.5%, and two years ago, buyers actually outnumbered sellers.

There haven’t been this many sellers since March 2020, and at no point since 2013 (with the exception of the beginning of COVID-19 lockdowns) have there been so few buyers.

The company anticipates that, as a result of the mismatch, home prices will drop by 1% by the end of this year.

Forty-four percent of home listings in April had been on the market for 60 days or longer–the highest April share since 2020.

Redfin listed a number of reasons why sellers currently outnumber buyers, including the weight of current home prices and mortgage rates, uncertainty about the status of the American economy and the lock-in effect from low rates garnered during the COVID-19 pandemic finally easing.

“The balance of power in the U.S. housing market has shifted toward buyers, but a lot of sellers have yet to see or accept the writing on the wall. Many are still holding out hope that their home is the exception and will fetch top dollar,” said Redfin Senior Economist Asad Khan. “But as sellers see their homes sit longer on the market and notice fewer buyers coming through on tour, more of them will realize that the market has adjusted and reset their expectations accordingly.”