For a long time, the housing market heavily favored sellers—homes were being snatched up quickly, and buyers had to compete fiercely to land a deal. But recently, we’re seeing a more optimistic change: the market is beginning to balance out. While some regions still experience high demand and multiple offers, others are seeing a slight cooldown, giving buyers more negotiating power and options.

In short, we’re entering a tale of two markets. Understanding which market you're in—buyer’s or seller’s—can be a game changer for your next move.

What Is a Buyer’s Market vs. a Seller’s Market?

A buyer’s market occurs when there’s a large supply of homes for sale and fewer buyers looking to purchase. This scenario gives buyers more room to negotiate, as homes tend to stay on the market longer and may sell for less than they would in a hot market.

On the other hand, a seller’s market happens when there’s a limited number of homes for sale and many buyers looking to purchase. In these markets, homes sell quickly, often attract multiple offers, and prices tend to rise as buyers compete.

The Market Is Becoming More Balanced

After years of seller dominance across the country, the market is beginning to level out—and that’s great news for many. According to Zillow, the national housing market is trending toward a more balanced state (see graph below):

The graph uses an index that ranges from 0 to 100 to determine whether the market favors buyers, sellers, or is neutral. The closer the score is to 100, the more it benefits sellers. During the height of the seller’s market from 2020 to early 2022 (orange bars), the scales were tipped in sellers' favor. However, recent data shows a shift toward a more neutral market (gray bars), meaning buyers are starting to regain negotiating power.

In a balanced market, homes often stay on the market a bit longer, bidding wars are less frequent, and sellers may offer concessions like closing cost assistance or price reductions. This creates a more level playing field, especially for first-time buyers or those who previously struggled to compete.

Why the Shift Is Happening

Inventory is playing a major role in this market evolution. More homes on the market mean more options for buyers, helping to stabilize home prices. Realtor.com data shows that inventory growth varies significantly by region (see graph below):

The chart highlights year-over-year inventory changes (blue bars) and how current levels compare to pre-pandemic years (2017–2019, shown in red bars).

The South and West have seen significant increases in inventory, approaching pre-pandemic normalcy—which is why buyer’s markets are more common in those areas. Meanwhile, the Northeast and Midwest continue to experience low inventory compared to historic levels, keeping those regions firmly in seller’s market territory.

What This Means for You

Every real estate market is unique. National headlines can be helpful, but your local market may tell a very different story—even from one neighborhood to the next.

That’s why partnering with a local real estate agent is more important than ever. Agents bring in-depth knowledge of your specific area and can tailor your buying or selling strategy accordingly. As Zillow puts it:

“Agents are experts on their local markets and can craft buying or selling strategies tailored to local market conditions.”

Whether you're entering a buyer’s market, a seller’s market, or something in between, a skilled agent can help you make informed decisions. They know how to price homes accurately, negotiate effectively, identify local opportunities, and navigate the shifting dynamics of today’s real estate landscape.

Bottom Line

If you’re considering a move—or even just starting to explore your options—connecting with a trusted local real estate agent can make all the difference. Understanding the nuances of your market will help you build a smart strategy and move forward with confidence.

Have questions about what’s happening in your area? Reach out to Mike Panza and the team at Panza Home Group. They’re ready to help you navigate the market and find the best path forward. Learn more about how to contact them here: https://panzarealestate.com/team/mike-panza