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The U.S. housing market is showing signs of shifting in favor of buyers, as rising inventory levels and slower sales give homebuyers more leverage than in recent years. Mortgage rates remain high, suppressing demand, but an increase in unsold listings and longer time-on-market suggest sellers are being forced to offer price reductions and incentives. While not yet a full buyer’s market, the trends indicate that home price appreciation is slowing, and affordability could improve if mortgage rates ease in 2025.

So, are we officially in a buyer’s market? We’re not quite there across the board, but early signs are emerging – especially compared to the ultra-tight market of 2021-2022. Inventory levels are still relatively low by historical standards (even 2019’s supply was constrained), but the trend is what matters: supply is up 17.7% year-over-year in 2024 and home sales have been sluggish. Although we likely won’t see a sudden nationwide price plunge, we could see modest corrections or stagnation in pricing. Buyers are gaining modest leverage, and if mortgage rates inch down in 2025 as some predict, their position will strengthen further (demand would pick up, but so would ability to pay).