For years, sellers have dominated the housing market. Low inventory and high demand created intense competition, making it tough for buyers to secure a home. But now, as housing inventory increases, the market is shifting in many areas.
So, what does this mean for homebuyers and sellers in 2025? Is it getting easier to buy a home? Let’s break it down.
Buyer’s Market vs. Seller’s Market: What’s the Difference?
The balance of power in real estate depends on supply and demand—how many homes are for sale versus how many buyers are looking.
- Seller’s Market: When demand outpaces supply, sellers have the advantage. Home prices rise, bidding wars happen, and homes sell quickly—often above the asking price.
- Buyer’s Market: When there are more homes than buyers, sellers must offer incentives, negotiate, or lower prices to attract buyers. This gives buyers more choices and flexibility.
According to National Association of Realtors (NAR) data, market conditions fluctuate over time, impacting how easy or difficult it is to buy or sell a home.
Where Does the Housing Market Stand Now?
While many areas still favor sellers, some local markets are shifting toward balance. As Lance Lambert, Co-Founder of ResiClub, explains:
“Among the nation’s 200 largest metro 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 find the most leverage or market balance in 2025.”
This shift means that in certain areas, buyers finally have more negotiating power than they’ve had in years.
What This Means for You as a Buyer or Seller
Understanding market conditions is key to making the right real estate moves in 2025. Whether you’re looking to buy your first home or sell your current one, strategy matters.
- Buying in a Seller’s Market? You may need a competitive offer strategy and mortgage pre-approval to stand out.
- Selling in a Buyer’s Market? Pricing your home right and offering incentives can make a big difference.
This is where working with a local real estate expert comes in handy. They know the latest trends, home values, and negotiation tactics to help you succeed—no matter what type of market you’re in.
Bottom Line
With housing inventory on the rise, the market may be shifting toward balance, but conditions vary by location.
Are you wondering if buyers or sellers have the upper hand in your area? Let’s connect! Arbor Home Loans is here to help you navigate the market with confidence.
Contact us today to get started!