The U.S. housing market is shifting to more of a buyer’s market for the first time in years. In January 2025, the market saw 3.7 months of for-sale supply, the highest level since February 2019 and an increase from 3.3 months the previous year, according to a new report from Redfin. While the market isn’t universally a buyer’s paradise, the conditions are better than they’ve been in recent memory, particularly in certain regions like the Sun Belt.
The changing landscape. Is it a buyer’s market?
Traditionally, a buyer’s market is defined as having four to six months of available housing supply. While January’s 3.7-month supply doesn’t quite reach that threshold, it’s the closest the market has come since 2019.
Key indicators are pointing toward a shift in favor of buyers:
- Slower Sales: Pending home sales fell 6.3% in January, reaching the lowest level since the pandemic’s early days in April 2020.
- Homes Sitting Longer: The typical home took 56 days to sell in January, the longest period since February 2020.
- Price Growth Slowing: The median U.S. home price rose 4.1% year over year, the slowest growth since September.
- Negotiation Power Increasing: Homes sold for 1.8% less than their final asking price in January, marking the largest discount in nearly two years.
- More Deals Falling Through: January saw the highest rate of home purchase cancellations since at least 2017.
Buyer’s market: Regional differences
It’s crucial to understand that the housing market is not uniform across the country.
- Sun Belt Metros: These areas, particularly in Florida, are experiencing a surge in buyer favorability. Cities like Cape Coral, Miami, and Fort Lauderdale are seeing significant increases in inventory, offering buyers more choices and negotiation leverage. Factors like increased construction and changing buyer demand due to affordability and natural disaster risk are contributing to this shift.
- Northeast and Midwest: Sellers generally maintain more power in these regions.
Top 10 buyer’s markets
| Rank | Market | Months of Supply (in months) | Months of Supply (Year over year – in months) |
| 1. | Cape Coral, FL | 11.6 | +3 |
| 2. | Miami, FL | 11.4 | +3 |
| 3. | McAllen, TX | 10.5 | +2.5 |
| 4. | Fort Lauderdale, FL | 10.3 | +2.9 |
| 5. | West Palm Beach, FL | 9.6 | +1.8 |
| 6. | New Orleans, LA | 8.1 | +0.3 |
| 7. | North Port, FL | 7.3 | +0.6 |
| 8. | Honolulu, HI | 6.4 | +0.6 |
| 9. | Jacksonville, FL | 6.3 | +1.1 |
| 10. | San Antonio, TX | 6 | +0.4 |
What this means for buyers
Despite mortgage rates remaining elevated and home prices still near record highs, the current market presents a rare opportunity for buyers who have been waiting on the sidelines. With increased inventory and more room for negotiation, buyers can take advantage of price reductions and favorable terms.
However, Redfin Economics Research Lead Chen Zhao warns that these conditions may not last long. “Many buyers don’t feel like they are in a buyer’s market with prices still high, but this is the first time in years where they have as much, if not more, power than sellers,” Zhao noted.
Summary
The U.S. housing market is experiencing its most buyer-friendly conditions in years, especially in Sun Belt metros where inventory is surging. While not universally a buyer’s market, key indicators suggest that those looking to purchase a home may find more favorable conditions than they have in recent years. If you’re considering buying, now may be the time to take advantage before market conditions shift again.
Are you thinking about buying your slice of paradise here in South Florida? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search app for your smartphone or tablet!
