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Key Takeaways
- Home sellers outnumbered buyers by 47% in December, the widest gap in more than a decade of Redfin data.
- Both buyers and sellers retreated from the housing market as mortgage rates remained elevated and home prices edged higher.
- But in some places like Nassau County, N.Y. and Milwaukee, home sellers had an edge, the report showed.
Buyers have more power in many U.S. housing markets, even as prices hold firm.
There were 631,535 more home sellers than buyers in December, according to Redfin data, creating a staggering 47% gap. That’s the widest margin recorded since Redfin began tracking it in 2013, and an increase of more than 22 percentage points from a year ago.
More sellers in the market mean more options for buyers, as housing supply outpaces demand. However, the growing imbalance comes as housing remains unaffordable for many people, thanks in part to mortgage rates that hovered above 6% throughout 2025.
Why This Matters to the Economy
A slower housing market can weigh on overall economic growth by curbing construction, home improvement spending, and consumer mobility. If housing weakness drags on, it could slow inflation but also dampen confidence and job growth tied to real estate and related sectors.
Despite the significant gap between sellers and buyers, home prices continue to climb. Existing-home prices rose for the 30th consecutive month in December, reaching a median of $405,400, according to data from the National Association of Realtors.
“A lot of sellers are in denial and won’t budge on price,” said Dallas-based Redfin Premier real estate agent Connie Durnal in a prepared statement. “If you don’t price your home reasonably, it will sit on the market.”
Both Buyers and Sellers Are Leaving Housing Market
Some homeowners who are having trouble selling are pulling their properties off the market. Buyers are staging a more drastic retreat. Redfin estimated 1.34 million homebuyers were in the market in December, the fewest on record.
Meanwhile, the total number of houses for sale in December was up from last year’s levels, but sharply lower from November.
“Inventory levels remain tight,” said NAR Chief Economist Lawrence Yun in a written statement. “With fewer sellers feeling eager to move, homeowners are taking their time deciding when to list their homes.”
Sales of existing homes last month rose by 5.1% when compared to November levels, making it the strongest month of sales in nearly three years, according to Yun. However, despite the improvement, home sales in December remained near decades-low levels.
“2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales,” Yun said.
The best markets for buyers were in the South and West, since areas in Texas and Florida have the highest concentrations of sellers. But not all U.S. housing markets were tilted in favor of buyers, the Redfin report showed. Buyers outnumbered sellers in Nassau County, N.Y. by 33% and also had majorities in Montgomery County, Pa., Newark, N.J., Milwaukee and New Brunswick, N.J.
