Homebuyers continue to hold the power in the U.S. housing market, according to a new report from online brokerage Redfin.
The brokerage reported that there were an estimated 46.9% more home sellers than buyers in the nation’s housing market in May. That’s up from 46.4% in April but down from a peak of 49.5% in December 2025.
Nashville, Tennessee, Miami, Florida, and Austin, Texas are the biggest drivers of this spring’s buyer’s market, Redfin noted, with the largest surplus of sellers over buyers. The top five was rounded out by Houston and San Antonio.
“While the gap between homebuyers and sellers has narrowed slightly since the end of last year, house hunters still have far more negotiating power and less pressure to make rushed decisions,” said Redfin Senior Economist Asad Khan. “With lots of inventory to choose from, buyers in most of the country can be selective and ask for concessions, while sellers still need to price competitively to stand out. Still, buyers should remember that it’s not quite as strong of a buyer’s market as it once was. The most desirable homes in popular metro areas—and popular neighborhoods in all areas—are still attracting multiple offers.”
Buyers Have More Options
Redfin noted that when sellers outnumber buyers, buyers usually hold more negotiating power because they have options. That is why a market with many more sellers than buyers is considered a buyer’s market.
Redfin said it defines a market where there are over 10% more sellers than buyers as a buyer’s market and a market where there are over 10% fewer sellers than buyers as a seller’s market. A market where the gap is plus or minus 10% is considered a balanced market, Redfin noted.
High housing costs and widespread economic uncertainty have caused many would-be buyers to back off in recent years, creating the imbalance of buyers and sellers that exists today, Redfin said.
Almost three-quarters of U.S. housing markets—35 of the 49 U.S. metro areas Redfin analyzed—are buyer’s markets, the brokerage said. For its report, Redfin said it analyzed the 50 most populous metros.
May’s strongest buyer’s market was Nashville, Tennessee, which had an estimated 130% more sellers than buyers. Next was Miami (122%), Austin, Texas (116%), Houston (111%) and San Antonio (108%).
“Listings are skyrocketing and buyers are being picky,” said Aaron Glicken, a Redfin Premier agent in Nashville. “Sellers are still struggling to wrap their minds around lower prices, which is one reason so many listings are going stale: Many sellers won’t negotiate or lower their prices. At the same time, buyers are being very particular; they’re contending with high mortgage rates, more choices, and often only want to close a deal if sellers will negotiate.”
Strength in the Sun Belt
Redfin said that Nashville is emblematic of why the Sun Belt is home to so many strong buyer’s markets.
The Sun Belt rocketed in popularity during the pandemic, when many out-of-staters moved in thanks to remote work and record-low mortgage rates. Redfin said. Home construction boomed to keep pace with demand, but after those new homes were complete, soaring mortgage rates, rising insurance costs, increasing HOA fees, and climate risks have limited buyer demand. That has left sellers with more competition, Redfin noted.
The brokerage said that new construction plays a big role in whether buyers or sellers have the upper hand because it increases housing supply. Redfin noted that the South and West, especially Florida and Texas, have built far more homes than the Northeast and Midwest, which helps tip many metros in those regions toward buyers.
Nationwide, meanwhile, there were an estimated 1,483,839 home sellers in the market in May, which is the highest level since 2020 and up 0.4% month over month.
There were an estimated 1,010,386 buyers in the market, which was essentially unchanged (0.1%) from the month before.
The fact that the number of sellers grew from April to May while the number of buyers was essentially flat explains why the seller surplus rose, Redfin said. It noted that new listings hit the market at a slightly faster rate than buyers entered the market.
Demand Flattened in May
According to Redfin, homebuying demand flattened in May largely because mortgage rates soared to their highest level in nearly a year, straining affordability. Widespread economic and geopolitical uncertainty also deterred house hunters, with the Iran war, rising gas prices and inflation coming together to create financial jitters.
More sellers entered the market last month partly because they noticed an increase in homebuying demand in April caused by a strong job market and temporarily lower mortgage rates.
Seven of the major U.S. metro areas Redfin analyzed were seller’s markets in May, tied with April for the highest number in nine months, the brokerage noted. The metros that are neither seller’s nor buyer’s markets are considered “balanced” markets.
Nassau County, New York, was the strongest seller’s market, with 38% fewer sellers than buyers. The other six seller’s markets were Milwaukee (-29.%), Montgomery County, Pennsylvania (-25%), Newark, New Jersey (-21%), New Brunswick, New Jersey (-20%), Providence (-19%) and San Francisco (-14%).
Redfin said that home-sale prices increased 4.3% year over year, on average, across the seven seller’s markets in May. That figure compares with a 1.6% increase across the 36 buyer’s markets—an indication that in seller’s markets, competition among buyers is pushing up home prices.
Most of the buyer’s markets became stronger buyer’s markets in May, Redfin said. The surplus of home sellers over buyers grew month over month in 23 of the 35 buyer’s markets. The surplus increased most in Nashville, which was also the strongest buyer’s market in May, Redfin said.
Nashville Sees Rise in Sellers vs. Buyers
There were 130% more sellers than buyers in Nashville, up from roughly 114% the month before. The next-biggest monthly increase was in St. Louis, which went from being a balanced market in April to a buyer’s market in May, with 15% more sellers than buyers. Oakland, CA, rounds out the top three (31% more sellers than buyers, up from 21%).
Next are two Texas metros: In both Houston and Austin, there were more than twice as many sellers as buyers in May, and both Redfin noted that the metros realized an increase in the gap of nearly 10 percentage points month over month.
In some of the buyer’s markets, house hunters lost some negotiating power. In 12 of the 35, the surplus of sellers over buyers fell from April to May. That means they became less strong buyer’s markets.
The biggest decline was in Pittsburgh, Pennsylvania, where there were 53% more sellers than buyers, down from about 63% the month before. Next, in Miami, there were 122% more sellers than buyers in May, but that’s down from a 131% surplus in April. The next-biggest declines were in West Palm Beach, Florida, Portland, Oregon, and Fort Worth, Texas.
