Buyer’s Markets Remain Rare, But Offer Opportunities for Some Homebuyers

The U.S. housing market achieved an unusual level of balance this summer, as reported by Realtor.com’s August 2025 housing report. For the first time in years, the market reached a “balanced” state with 5.0 months of supply, an equilibrium that hasn’t been seen during summer months since Realtor.com began tracking it in 2016. While local market conditions still differ greatly, this shift indicates a gradual rebalancing of power from sellers to homebuyers.

Danielle Hale, Chief Economist at Realtor.com, explained, “The national housing market is now more balanced between homebuyers and sellers with five months of supply. However, this balance masks significant local differences. In cities like Miami, Austin, and Orlando, buyers are clearly taking the reins, while markets like Milwaukee and Boston still favor sellers.” Hale emphasized that local dynamics rather than national trends play the most significant role in determining pricing, competition, and timing for homebuyers and sellers alike.

Understanding Market Balance: What Does “Months of Supply” Mean?

The “months of supply” metric represents the total inventory available for sale in a given month, factoring in both active and pending listings, divided by the number of homes sold in that month. Essentially, it measures how long it would take to sell all the homes on the market at the current sales pace. Generally speaking:

• A market with fewer than four months of supply is considered a seller’s market (with rising prices and low inventory).
• A market with four to six months of supply is a balanced market (with steady pricing).
• A market with more than six months of supply is a buyer’s market (where buyers have more options and prices may drop).

In August 2025, the housing supply was balanced at the national level, but regional disparities continue to shape the overall dynamics.

Regional Differences: Who’s Winning Buyers or Sellers?

In cities like Miami, Austin, and Orlando, buyers enjoyed a stronger position, with markets showing a “buyer’s market” designation, as the months of supply exceeded six months. Interestingly, Milwaukee and Boston still saw the opposite, with a “seller’s market,” where competition remains high and homes are selling quickly.

For example, in Miami, the months of supply spiked to 9.7 in June, indicating that buyers have more leverage. Austin and Orlando also saw supply rise to 7.1 and 6.9, respectively, signaling the buyer’s advantage in these cities.

However, cities like Milwaukee and Boston remain in seller-friendly territory, with months of supply sitting at 2.7 and 3.0, respectively. This makes it harder for buyers to negotiate better prices or deal with less competition for desirable homes.

Market Pricing Trends: Prices Showing Some Softening

Nationally, the median listing price for homes in August 2025 was $429,990, showing a slight decline of 2.2% from the previous month but remaining level compared to the same time last year. When broken down regionally:

• The Northeast saw a modest price increase of 1.1% year-over-year.
• The Midwest and South remained mostly stable with little to no change in prices.
• The West experienced a slight 2.1% decline, reflective of the cooling market trends on the West Coast.

While prices have softened in some regions, inventory and home availability are still significant concerns in many areas, especially in the South and West, which continue to experience a higher concentration of new homes and active builders. In contrast, the Northeast and Midwest have tighter markets with fewer new homes and higher demand, keeping prices relatively stable.

Delisting Trends: Sellers Rethink Their Strategies

Another emerging trend in the market this summer has been the rising number of delistings, as sellers pull their homes off the market rather than accept less-than-ideal offers. Data from July 2025 shows a 57% year-over-year increase in delisting, continuing a sharp upward trajectory that has already surpassed the growth in active listings.

In Miami, for instance, the delisting-to-new-listing ratio was the highest, with 57 delistings for every 100 new listings. Other cities like Phoenix and Riverside, CA also saw significant delisting rates. This signals that sellers are unwilling to accept lower offers and are choosing to hold off on selling rather than negotiate on price.

The increase in delisting is particularly noteworthy in markets where buyers have more negotiating power, such as Miami and Riverside, where rising interest rates and concerns over affordability may be contributing factors.

Slowing Demand: Sales and Listings Decline

Demand for homes has continued to cool, as evidenced by the declining pending home sales and new listings in August. Pending home sales were down 1.3% compared to the same month last year, while new listings grew by a modest 4.9%. Homes are also taking longer to sell, with the median days on the market rising to 60, up from 53 days in the previous year.

The increase in time on market reflects broader market conditions, particularly in the South and West, where listings are now lingering longer than they were before the pandemic. Cities like Miami and Nashville saw the most significant increases in days on market, with Nashville experiencing a rise of 21 days compared to last year.

Housing Market Outlook: What Lies Ahead?

The overall housing market remains in a delicate balance, with regional differences shaping the buyer-seller dynamic. While some areas have softened, offering potential opportunities for buyers, others remain competitive with sellers still holding the upper hand.

Active listings have increased, but the pace of growth has started to slow, which could put a damper on inventory in the coming months. As the year progresses, we can expect continued regional variations in home prices, with some areas seeing further softening while others may hold steady or even see price increases.

For homebuyers, the key takeaway is to understand that local market conditions will ultimately determine your experience. Whether you’re in a buyer’s or seller’s market will significantly impact your purchasing power, so it’s crucial to stay informed on your specific area’s dynamics. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.