600K More Sellers Than Buyers: Why the US Housing Market Just Hit a Historic Breaking Point
The U.S. housing market had 600,000 more sellers than buyers in March, according to a Redfin analysis. That’s a 43% gap, the second-largest in more than a decade, triggered by a 10% drop in demand.
But sellers aren’t the only ones struggling. High prices and concerns about the economy continue to sideline many would-be buyers.
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Why There Are So Many More Sellers Than Buyers
The Redfin analysis revealed that the number of buyers fell 10% between March 2025 and March 2026. The number of sellers grew just 0.7% during that period, which means demand is falling faster than inventory is increasing.
Sellers have responded by delaying listing their homes or pulling already-listed homes off the market. As peak selling season approaches, however, sellers are starting to re-list with the hope of capitalizing on seasonal upticks in price and sales, per a separate Redfin report.
What It Means If You’re Buying a Home in 2026
Buyers struggling with high home prices and mortgage rates aren’t seeing any relief so far. The national median sale price was $436,412 in March, a 1.1% year-over-year increase, per Redfin data. And after a downward trend in the last half of 2025, mortgage rates have risen to 6.3%, the highest average since last October, per Freddie Mac.
So what’s a buyer to do? First and foremost, adjust your expectations based on current market conditions and your financial situation.
If you’re not in a rush, consider waiting until fall, when prices are off their seasonal peaks, especially in cool-weather markets, per Redfin. And watch for price reductions from sellers with many days on market. Those who’ve been chasing a declining market might be ready to cut their losses.
What This Means for Sellers
Unless your market is bucking the national trend, you’ll need to price your home aggressively, based on what similar homes have sold for in your neighborhood. Look for ways other than price to maximize your sale proceeds.
Time your listing to take advantage of the spring/summer peak selling season.
Offer a seller’s concession for closing costs with a full-price offer.
Be flexible with the closing date
Regional Markets Can Differ From National Trends
Regional market trends can look very different from what’s happening on a national level. The Northeast in particular has strong sellers markets, including those in the New York metropolitan area and Montgomery County, Pennsylvania, per Redfin.
That said, the market favors buyers in most of the country, especially in Southern and Western states. Construction booms in Florida and Texas, for example, significantly increased inventory in response to Covid-era demand that has since died down.
Final Thoughts
The national housing market strongly favors buyers, but affordability is still keeping many buyers out of the market. And in some regions of the U.S., it’s sellers who have the upper hand. But no matter where you live and whether you’re buying a home or selling one, realistic expectations are key to a successful sale.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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