What That Means for Home Prices

. housing market In general, like the economy, it is a Mercury monster that is impossible to predict its movements with 100% accuracy. However, even though we cannot say exactly what will happen in the next few months, we can look at what’s going on to get some clues about what will happen. And now, we see something quite incredible: more than buyers looking for houses for sale.

On May 29, 2025, Redfin reported There are 34% (500,000) more sellers than buyers. We have not seen that the sellers have more than this degree since 2013. Last year, sellers were more than the number of buyers – but only 6.5 – and 2023, buyers were more than the number of sellers.

What does this return on the market mean for house prices?

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Again, nothing can be said 100% about the future of the housing market, but this incredible inequality between buyers and sellers who are more than buyers and sellers, says that home prices will not fall. Just as the inventory/supply shortage increases with demand, the excessive inventory, which is matched with decreasing demand, allows the prices to fall.

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So, if we have 34% more sellers than buyers, we should expect housing prices to leave something 34% in the basketball court, right? No. Not even close. Redfin estimated that housing prices will decrease by 1% annually by the end of 2025. Why is such a modest decline?

When there are a lot of houses for sale and there are not many people who want to buy, those who want to buy have upper hands on negotiation. A seller may include a lower price quote than in a hot market with the inventory in their homes.

However, most sellers will not do anything like to host a sale, first of all, half -closed with their homes, unless they are seriously in a terrible situation or not to be foreclosed. A seller will still look at their best interests and choose to allow their homes to sit in Zillow for a while or to list them during a seller’s market.

During the great recession, the US saw a flood of foreclosure. This is the housing balloon exploded and tons of debtor home, banks/mortgages lenders were released at low prices because they were desperate to make their best. But we haven’t seen much foreclosures lately. On January 16, 2025, AtTom, a curator of land, property data and real estate analysis, published findings that the foreclosures in 2024 decreased from 2023% to 13% and decreased from 2019 to 75%. It fell by 97% from 2010.