US housing market shifts toward buyers amid rising inventory

The United States housing market is experiencing a shift in leverage toward buyers as inventory levels rise and seller dominance wanes. Data from August indicates that sellers outnumbered buyers by 58%, the widest gap since 2013. The National Association of Realtors reported a 4.9-month supply of homes, the highest level in over a decade.

Despite increased inventory and more price reductions—with 20.4% of listings seeing cuts in August—buyer demand remains suppressed. High mortgage rates, which have recently approached or exceeded 7%, serve as a significant psychological and financial barrier. This has led to a slowdown in existing-home sales and increased the number of days properties remain on the market.

Financial experts advise potential buyers to ‘rate-proof’ their budgets, preparing for fluctuations of up to 100 basis points. While some markets are seeing buyers regain negotiating power and secure concessions, the combination of high borrowing costs and economic uncertainty continues to cause many prospective homeowners to delay their purchases.