Growing Home Inventory Creates New Opportunities for Today's Homebuyers
In the Mortgage Monitor two weeks ago, we noted that the inventory of homes for sale in the U.S. has outstripped the number of buyers in the market. Recent data from Redfin further highlights this imbalance. There are nearly 500,000 more homesellers than homebuyers, according to recent analysis from Redfin.1 Sellers have not outnumbered buyers by this large of a number since 2013.2 This shift in supply and demand can influence both the home buying and selling experiences.
Several factors contribute to the number of sellers surpassing that of buyers. First, median home prices are high, having increased by 1.6% year-over-year to $431,931 in April 2025.3 This pricing environment has led some buyers to take a more selective approach to their home search, contributing to the current market dynamics. Additionally, buyers are taking a more cautious approach due to concerns about rising interest rates, unpredictable job markets, tariff talks, and concerns about inflation.
When homebuyers find themselves in a market with more choices and less competition, they often gain the upper hand in negotiations. Robert Odom, president of the mortgage division at Ameris Bank, explains. "This situation creates opportunities for buyers to negotiate more favorable terms, competitive pricing, and attractive incentives as sellers adapt to current market conditions." Odom added that negotiating a home price decrease, given today's fluctuating interest rates, can be a viable strategy for buyers. "Securing a home at a competitive price point can help offset concerns about current interest rate levels and improve overall affordability for buyers."
A decline in the number of homebuyers is likely to have an impact on home prices. When there are fewer buyers and real estate investors in the market, the demand for homes decreases. As a result, home listings may remain on the market longer, and sellers might reduce their asking prices to attract buyers. Redfin economists predict that home prices could drop by 1% by the end of 2025.4 Odom said there is one scenario that might reverse this trend. "If mortgage rates go down this year, homebuying demand would likely rise, which could lead to an increase in home prices." As of June 24, 2025, the average interest rate for a 30-year fixed mortgage was 6.75%5, and Fannie Mae expects 30-year mortgage rates to end 2025 at 6.1%.6
Sources:
1, 2, 3, 4 https://www.redfin.com/news/sellers-vs-buyers-price-impact/
5 https://www2.optimalblue.com/obmmi
6 https://www.fanniemae.com/data-and-insights/forecast/economic-developments-may-2025
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank is not affiliated with nor endorses Redfin, Optimal Blue, or Fannie Mae.
Why sellers outnumber buyers.
Several factors contribute to the number of sellers surpassing that of buyers. First, median home prices are high, having increased by 1.6% year-over-year to $431,931 in April 2025.3 This pricing environment has led some buyers to take a more selective approach to their home search, contributing to the current market dynamics. Additionally, buyers are taking a more cautious approach due to concerns about rising interest rates, unpredictable job markets, tariff talks, and concerns about inflation.
Buyers have greater negotiating power.
When homebuyers find themselves in a market with more choices and less competition, they often gain the upper hand in negotiations. Robert Odom, president of the mortgage division at Ameris Bank, explains. "This situation creates opportunities for buyers to negotiate more favorable terms, competitive pricing, and attractive incentives as sellers adapt to current market conditions." Odom added that negotiating a home price decrease, given today's fluctuating interest rates, can be a viable strategy for buyers. "Securing a home at a competitive price point can help offset concerns about current interest rate levels and improve overall affordability for buyers."
Will fewer homebuyers affect home prices?
A decline in the number of homebuyers is likely to have an impact on home prices. When there are fewer buyers and real estate investors in the market, the demand for homes decreases. As a result, home listings may remain on the market longer, and sellers might reduce their asking prices to attract buyers. Redfin economists predict that home prices could drop by 1% by the end of 2025.4 Odom said there is one scenario that might reverse this trend. "If mortgage rates go down this year, homebuying demand would likely rise, which could lead to an increase in home prices." As of June 24, 2025, the average interest rate for a 30-year fixed mortgage was 6.75%5, and Fannie Mae expects 30-year mortgage rates to end 2025 at 6.1%.6Sources:
1, 2, 3, 4 https://www.redfin.com/news/sellers-vs-buyers-price-impact/
5 https://www2.optimalblue.com/obmmi
6 https://www.fanniemae.com/data-and-insights/forecast/economic-developments-may-2025
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank is not affiliated with nor endorses Redfin, Optimal Blue, or Fannie Mae.