In September, Redfin characterized the Summer 2025 housing market as the strongest buyer’s market “in over a decade,” as from June to August, sellers outnumbered buyers by between 35-36%. The latest CNBC housing market survey also found that about half of surveyed agents believe it is currently a buyer’s market, while Zillow’s September housing market survey suggested housing market momentum is higher than usual headed into the fall season.
A buyer’s market is one where supply exceeds demand, a ratio that offers downward pressure on sellers to lower prices. Typically, a market with more than four-to-five months of inventory indicates a buyer friendly market as there are more sellers than buyers.
A market favorable to buyers doesn’t mean buyers will take advantage of it, or that every facet of the market is tilted heavily towards homebuyers. Looking at the particulars of the residential real estate market right now, which parts give buyers an edge and which give them a challenge?
Inventory is up
After low inventory spent the past years being a market hindrance, inventory has been on the upswing. Inventory rose 17% year-over-year, the 23rd-straight month of inventory increases, according to the September Monthly Housing Trends Report from Realtor.com. Months’ supply is the “best single indicator” for a buyer’s market, said Realtor.com Chief Economist Danielle Hale. After all, more houses for sale mean more choice for buyers, which gives them the advantage of being more choosy.
Consumers’ polled attitudes are mixed
When it comes to buyer behavior, market perception matters as much as market performance; if you think the market is bad or predict it will be soon, you’ll be disinclined to make a transaction.
The latest consumer sentiment survey from the University of Michigan, released earlier in October, showed consumers are less concerned about interest rates as a barrier to large purchases such as homes. However, sentiment still fell slightly month-over-month due to ongoing concerns over inflation.
Meanwhile, the aforementioned CNBC housing market survey—polling agents for insights into buyer thinking—found that most homebuyers expect mortgage rates will continue to come down further. Lower mortgage rates could incentivize prospective buyers to pull the trigger and begin a home search.
Buyers are backing out of deals
Studies also point to “buyers remorse” being a factor, with homebuyers “ghosting” sellers, or backing out deals, at a higher rate in some parts of the country. A recent Redfin report showed 53,000 of home contract sales (about 15% of them) were canceled. According to the report, both parties are being less willing to compromise as, due to lower competition, buyers can and do want a “perfect” home.
Metro areas where the highest number of pending sales fell through were primarily in Southern or Western areas, including several Florida (Tampa, Atlanta, Fort Lauderdale), and Texas (San Antonio, Fort Worth, Dallas) cities. Sun belt metro areas are seeing pending sales fall through not just due to high inventory and construction rates creating more options, but also due to buyer concerns about climate risks and resulting high home insurance premiums, per Redfin.
Affordability remains an issue
Greater inventory should bring down prices as sellers move to make their listing more appealing—and the latest S&P Cotality Case-Shiller Home Price Index did show the rate of home appreciation slowing.
However, the Q3 2025 U.S. Home Affordability Report found that homeownership expenses still remain less affordable than the historical average in 99% of surveyed counties. Reporting from Realtor.com also found that down payments remain slightly elevated as of Q3 2025 (albeit at a “steady” pace). With affordability a continuing concern and prices not outright reversing trend, some prospective homebuyers may still choose to remain prospective for the time being.
Mortgage rates are down, but most homeowners are still in “golden handcuffs” of lower rates
One trend seen among homebuyers who purchased during low mortgage rate days of 2020 to 2021 is the “lock-in effect,” where they won’t consider moving as they would be exchanging their low mortgage rate for a higher one.
As of October 2025, the 30-year fixed mortgage rate has hit around 6.2%, the lowest rate in over a year, yet still well above 2020 numbers. This low mortgage rate has reportedly brought an increase in existing-home sales, too.
However, in October 2025, Realtor.com shared data that suggested the so-called “golden handcuffs” of mortgage rates at 4% or below (the rate 52.5% of homeowners currently pay, per Realtor.com’s research). Their findings were corroborated by a Cotality report that “golden handcuffs” are depressing movement on homeowners selling. This not only demonstrably puts a barrier on inventory increases (i.e. a prime driver of a buyer’s market) but mortgage rates staying in the 6% range may hold back buyers who want a rate even lower.
