US Home Sellers Outnumber Buyers by Widest Margin in at Least 13 Years

On Wednesday, Redfin reported that there were an estimated 62.6% more home sellers than buyers in the US housing market in September, the largest gap in records dating back to 2013.

This marked the fourth consecutive record-breaking month, with the margin widening from 56.9% in August. The Sun Belt continued to drive the nationwide buyer’s market, led by substantial seller surpluses in Miami, Nashville, TN, and several Texas metropolitan areas.

Redfin defines a buyer’s market as one in which sellers outnumber buyers by more than 10%, while a seller’s market occurs when there are more than 10% fewer sellers than buyers. A market with a gap of plus or minus 10% is considered balanced.

Although an excess of sellers typically gives buyers greater negotiating power, elevated housing costs and widespread economic uncertainty have kept many prospective buyers on the sidelines, contributing to the growing imbalance, Redfin said.

Commenting on the report, Redfin Senior Economist Asad Kahn said:

“This is a buyer’s market born out of caution, not strength. Buyers have tremendous negotiating power in most of the country because so many other would-be buyers have been priced out of the market or scared off by economic uncertainty. For house hunters who have the budget and job security to purchase a home in today’s market, which creates a unique opportunity: They can be picky, negotiate, and even walk away if the deal doesn’t make sense financially or they find something they like better. The irony is that in terms of supply, these are some of the best conditions for buyers in many years—but they have arrived at a time when costs are so high that fewer people can afford to take advantage of them.”