Tides Are Turning in Favor of Buyers. Here’s How to Prepare

Blog posted On June 12, 2025

For the first time in years, the U.S. housing market may be giving buyers the upper hand. According to a recent Redfin report, there are now 500,000 more homes for sale than there are buyers actively shopping—marking a significant shift from the red-hot, seller-dominated days of 2021–2022.

What experts are saying

“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,” said Redfin Senior Economist Asad Khan. “Many are still holding out hope that their home is the exception and will fetch top dollar.”

“A lot of the people selling right now bought in 2021 or 2022, when home prices were near their height,” said Corey Stambaugh, a Redfin Premier agent in North Carolina. “Even though we advise them to list at today’s market value, a lot of them decide to list high to recoup their money.”

What’s causing the shift?

U.S. home prices were still up 4.1% year-over-year in March according to the 20-city Case-Shiller home price index, but month-over-month, prices are beginning to cool. Both the seasonally adjusted 20-city Case-Shiller home price index and the FHFA house price index showed a 0.1% decline on monthly prices. A growing supply of homes and easing mortgage rates are cooling the market, according to the S&P CoreLogic Case-Shiller Home Price Index.

Redfin economists expect home prices to dip by about 1% by the end of 2025. Demand is already down. Sales of existing homes fell 1.1% year over year in April, hitting a six-month low.

How to succeed as a seller in the current market

If you decide to list your home in the current market, the best thing you can do is listen to your real estate agent. They’ll provide the best guidance on when to list and how to properly price your home. Here are a couple of other strategies that could help:

1. Don’t wait too long to list: Listing sooner could help you avoid more speed bumps down the road when the market is cooler
2. Don’t overprice: You understandably will want to try to get the same money out of your home that you put into it, but overpricing your home can be a costly mistake, leading it to sit on the market and potentially give buyers more leverage
3. Consider price cut alternatives: If your home has been sitting on the market, consider some better alternatives to a price cut (which can send the wrong signal to buyers). List & Lock™ is a great way to help you sell faster and save more (ask us about it!)
4. Explore renovation options: Certain renovations in high-impact areas like the kitchen can go a long way

How to succeed as a buyer in the current market

Buying a home is still a big financial commitment—especially with today’s economic uncertainty, from tariffs and layoffs to changing federal policies. But if you're thinking about jumping in, here’s what you can do to give yourself an edge:

1. Get preapproved: Getting preapproved gives you a clear sense of what you can afford and strengthens your position
2. Follow your real estate agent’s advice: This might be your chance to score repairs, extras, negotiate price, or even get a few quirky furnishings along the way
3. Ask for a List & Lock: If you’re looking at a home that’s been on the market a while, you could be in a position to score bigger savings than a price cut. List & Lock can help you score a lower mortgage rate, lowering your monthly payments and saving you thousands over the life of your loan. Ask us about it!

Half a million more sellers than buyers is a big swing—but also a normalizing correction after years of runaway demand. If you’re in the market to buy, this might be your best shot in years. And if you're a seller, realistic pricing and strategic marketing are more important than ever. Want to learn how to make the most of this shift? Let’s talk.

Sources: Yahoo! Finance