For a long time, sellers had the advantage in the housing market. There were few homes available and a lot of buyers wanting to purchase them, making it really competitive for buyers to get their offers accepted. However, we're starting to see a change as inventory is increasing in many areas.

Is the market starting to balance out? Does this mean it might get easier for buyers? Here’s what you should know.

Factors Defining a Buyer’s Market or a Seller’s Market

It really boils down to the number of homes available in an area versus the number of buyers looking to purchase. That balance is what ultimately decides who holds the upper hand.

• A seller’s market happens when there are more buyers than homes available. That means sellers are in the driver’s seat—prices go up, multiple offers roll in, and homes sell fast (often for more than the asking price) because there just aren’t enough to go around.

• On the flip side, a buyer’s market is when there are more homes than buyers. This shifts the advantage to buyers, giving them more options and time to decide. Sellers, on the other hand, may have to sweeten the deal with incentives or negotiate more just to close a sale.

You can observe how this develops over time by looking at the data from the National Association of Realtors (NAR) shown in the graph below.

Current Market Status

Although many areas are still experiencing a seller's market, buyers in specific locations are finding themselves with more negotiating power than they've had in a long time. This shift is largely due to the recent increase in available inventory. As Lance Lambert, Co-Founder of ResiClub, points out:

““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.”
”

— Lance Lambert, Co-Founder of ResiClub

Adjusting your plans according to who has the most negotiating power is key. An experienced agent knows how to navigate this.

Navigating a seller’s market can be tricky, but clever strategies can simplify the process – and the same goes for a buyer’s market. That’s why having a professional on your team is essential. A local real estate agent is well-versed in their market, understanding the dynamics of supply and demand. They know how to effectively assist their clients in securing a deal, regardless of the market conditions. With a skilled agent by your side, the location of your town becomes less of an obstacle.

With their knowledge, you can prepare and make a buy or sell decision regardless of the market conditions.

Bottom Line

As inventory levels increase, the market might be beginning to find some balance; however, that really depends on your specific location for buying or selling.

Curious about whether buyers or sellers hold the advantage in our area? Let’s chat to get you the answers you need.