For anyone trying to buy or sell a home today, one question keeps surfacing: Who really holds the power in this market? After years of high prices and fierce competition, signs of change are starting to emerge, but that doesn’t mean the pendulum has fully swung.
Sellers are seeing more homes pop up for sale in their neighborhoods. Buyers are noticing listings staying on the market a little longer and price reductions becoming more common. It’s a buyer-friendly market, but that doesn’t mean sellers are without control.
So, how can you tell whether you’re in a seller’s market? We break down the key indicators.
What is a seller’s market?
A seller’s market happens when there are more buyers than available homes for sale. This imbalance gives sellers the upper hand, often leading to faster sales, bidding wars, and higher prices.
If that sounds familiar, it’s because most of the country has been in a seller’s market since the early 2010s. After the 2008 financial crisis, new-home construction slowed dramatically and never fully caught up with demand, creating a long-standing shortage that still shapes the market today.
Metrics that typically indicate a seller’s market:
Low inventory: Measured in months of supply, a market is typically considered a seller’s market if there’s fewer than six months of available housing inventory.
High sale-to-list price ratios: This metric reflects how close a home’s final sale price is to its original list price. Ratios at or above 100% indicate homes are selling at or above asking—often a clear sign of strong demand.
Fewer days on market (DOM): When homes are selling quickly, it’s often because multiple buyers are competing. A low DOM suggests high demand and limited supply.
Multiple-offer situations: Bidding wars are a hallmark of seller’s markets. When buyers must compete aggressively—often with price escalations or waived contingencies—it’s a sign the seller holds the advantage.
Is it a seller’s market right now?
“New economic data this week shows that the balance of power in the housing market keeps shifting in favor of homebuyers,” Danielle Hale shared in her recent Weekly Housing Market Update.
Growing inventory, increasingly common price cuts, and slower-moving inventory has wrestled away some of sellers’ power and handed buyers more leverage than they’ve had in years, according to the June 2025 housing report from Realtor.com®.
But it still hasn’t transitioned into a buyer’s market. High mortgage rates are still weighing on homebuyers, and list prices are still holding steady, even growing 0.2% year-over-year.
So while it isn’t quite a seller’s market and it’s not yet a buyer’s market, it might be considered a buyer-friendly market.
Local and regional variations
Keep in mind, these are national averages. Locally, things can move much faster.
“My last listing went under contract in 16 days, and I’m working with a buyer who’s home just went under contract in two days, so the Northeast Atlanta market is still moving quickly if the homes are properly priced, staged, and clean,” says Lisa Harris, associate at Re/Max Center.
So while the market might be softening for buyers nationally, it can still be very much a seller’s market locally—as it seems to be in Harris’ market.
Jake Krimmel, senior economist at Realtor.com, offers some advice: “Locally, two good indicators are median days on market and the percent of listings with price cuts. If days on market is low, you’re likely to be in a seller’s market. If days on market is high and more and more sellers are cutting prices, that’s an indication buyers are gaining leverage.”
Since each market might have different historical trends and seasonality, Krimmel recommends using Realtor.com historical data to see where your market stands relative to itself in more normal pre-pandemic conditions.
What to do if you’re a seller
While a buyer-friendly market might scare sellers, they can use it to their advantage. Here’s how:
Price strategically: While demand remains strong, buyers are becoming more discerning, especially with rising costs. A well-priced home is more likely to spark interest and multiple offers than one that overshoots the market.
Stage and market smartly: Clean, staged homes with professional photography tend to sell faster and for more. In a market where buyers are still competing, first impressions are everything.
Consider your timing and location: Nationally, conditions still favor sellers, but the window might not be open forever. If you’re in a high-demand area and have flexibility, this could be a smart time to list. But in softening markets, working with a knowledgeable agent to time your sale and position your home is more important than ever.
What to do if you’re a buyer
Rising inventory and price reductions in some markets mean buyers might have more room to negotiate—if they’re prepared.
Get pre-approved: In competitive areas, speed is still essential to beating out other offers. Pre-approval strengthens your offer and shows sellers you’re ready to move.
Be flexible with contingencies: Offering a quick closing, waiving minor contingencies, or being accommodating on the move-in date can make your offer more appealing without increasing the price.
Use escalation clauses wisely: If you’re in a bidding war, an escalation clause can help you stay competitive without overspending; just be sure you understand your ceiling.
While buyers might feel like they’ve been on the back foot for years, there’s reason to be hopeful. With more inventory and longer days on the market in many regions, savvy buyers are beginning to regain some leverage, especially on homes that have lingered or been reduced.
The market is shifting, but the advantage isn’t gone
The housing market is changing, but the shift isn’t a sudden rupture. It’s more of a recalibration.
“Context matters,” Krimmel explains. “So what may feel like a sudden shift to a buyer’s market is really just a market that is slowly edging toward a balanced one. The market is becoming relatively less favorable to sellers, but it still is a seller’s market in an absolute sense. The national averages are just that—averages of local conditions.”
In other words, buyers might be gaining some ground, but sellers aren’t without power. To understand what kind of market you’re dealing with, it’s essential to zoom in on your local trends. National headlines provide a broad picture, but real leverage depends on what’s happening in your neighborhood, price tier, and home type.
No matter which side of the transaction you’re on, working with a trusted local agent can help you navigate those nuances and make a confident move in any market.
This post was originally published on www.realtor.com
