06/17/25

Real estate has always been cyclical, but the last few years, particularly since 2020, have been particularly topsy-turvy. Consider this recent report from Redfin saying that the gap between the number of sellers and buyers is bigger than ever.

Of course, there are two main points to consider when evaluating this news.

First, all real estate is local. This means that, regardless of what is happening nationally, your market may be significantly different from the national norm. That’s why working with local real estate experts is so important when it comes to buying or selling.

Second, high interest rates, inflation and the mortgage lock-in effect are keeping many potential buyers on the sidelines right now. After all, the lack of inventory has been a major theme in the residential real estate market over the last couple of years.

However, this data is too drastic to ignore: Redfin estimates that there is a surplus of almost 500,000 homes when using April data to compare the number of active buyers to active sellers. That 34% gap between sellers and buyers is the largest since data tracking began in 2013.  Here are a few takeaways for buyers, sellers and our fellow real estate agents to consider when it comes to their summer strategy.

Buyers have plenty of negotiating power right now. Nearly 45% of listings were on the market for over 60 days in April. Sellers, desperate to move inventory, are offering incentives like closing-cost coverage, repairs, or rate buy-downs. Couple that with the fact that sellers – and their agents – know you could be considering other properties, and there could be extra motivation to get a deal done. 

This may be the time for buyers to re-enter the market. Everyone is looking to time the market- and while that’s hard to do – now may be a good time to look at the housing market again, even without a rate cut by the Fed or substantially lower interest rates. There are deals to be potentially made.

It could still be the right time to sell. We’re not trying to talk out of both sides of our mouths here. However, some experts do advise listing now if you have some flexibility with your timelines. Why? Home prices could start to decrease if this influx of listings doesn’t bring additional buyers to the table. For its part, Redfin is predicting a 1% decrease nationwide, but as we all know, predictions in real estate are not always accurate.

Preparations will be key for sellers. Your current home could still attract plenty of interest when you do hit the market, but choosing the right REALTOR, staging your home inside and out, and pricing realistically for your area will be even more important than it has been in the last few years. Your home has the potential to stand out in a crowded market; it may just need a little help to do so.

Our goal is to make sure buyers and sellers are ready when it comes time to close on their property. After all, no matter what’s happening in our markets, each transaction is a journey, and we love being our customers’ guide home. Reach out to us anytime for your title and escrow work!