Are We Entering a Buyer’s Market? Why Experts Say the Housing Shift Is More About Balance

By: Jeff Wellman

Over the past five years, the housing market has been defined by extremes. First, a white-hot seller’s market during the pandemic—bidding wars, record-high prices, homes selling in days. Now, signs of a slowdown are everywhere: rising inventory, longer days on market, and more price reductions.

But are we truly entering a buyer’s market? Experts suggest the answer is more nuanced. The reality looks less like a dramatic swing, and more like a rebalancing—an overdue return to equilibrium.

Market Indicators Pointing to a Shift

Sellers Outnumber Buyers at Record Levels

In April 2025, Redfin reported roughly 500,000 more sellers than buyers—the most lopsided gap since they began tracking in 2013. That’s about 34% more sellers than buyers, a clear signal that buyers are regaining leverage.

Inventory Keeps Climbing

For 21 consecutive months, inventory has grown across the country. More homes for sale means more options for buyers, and fewer bidding wars. This is a stark contrast to the tight inventory during the COVID years.

Sellers Are Offering Incentives—or Walking Away

Across the U.S., sellers are increasingly adjusting expectations—cutting prices, offering concessions, or even pulling listings altogether when buyers don’t bite.

Buyer Confidence Is Slowly Improving

Pending sales ticked up +0.7% in July and +1.6% in August (Redfin), while mortgage applications also rose. That said, experts caution that buyers remain cautious, moving carefully in the face of economic uncertainty.

Market Still Rebalancing—Not a Full Buyer’s Market Yet

In cities like Phoenix, delisting rates have skyrocketed, and Zillow reports buyer leverage is at its strongest in years. But nationally, analysts agree: we’re not in a “buyer’s frenzy.” Instead, we’re moving toward balance.

What’s Driving the Slump?

Affordability Constraints

There’s still plenty of interest in homeownership—but many buyers are priced out. The median U.S. listing price of $439,450 remains unaffordable for about 70% of households. Rising mortgage rates further shrink the pool of qualified buyers.

High Mortgage Rates & Economic Uncertainty

While rates have eased slightly (6.3–6.5% as of September 2025), they’re still much higher than buyers grew used to in the past decade. For many households, a mortgage now eats up nearly half of take-home pay. Combined with weak job reports and lingering inflation, confidence is fragile.

Oversupply Pressuring Sellers

With inventory climbing for almost two years straight, sellers can’t rely on scarcity anymore. Instead, they’re competing for buyers’ attention with price cuts, incentives, and added flexibility.

First-Time Buyers on the Sidelines

Perhaps the most telling sign: first-time buyers made up just 24% of home purchases in 2025—down from 50% in 2010. High prices, tighter credit, and economic precariousness have kept many renters from making the leap.

The Bottom Line

So, are we officially in a buyer’s market? Not quite.
What we’re seeing instead is a long-awaited reset. Sellers no longer hold all the cards, but buyers aren’t in complete control either. Markets like Northern Michigan are trending toward balance, with motivated sellers and cautious buyers meeting somewhere in the middle.

For buyers, this means more options, less pressure, and stronger negotiating power. For sellers, it means realistic pricing and polished presentation matter more than ever.

Local Perspective: Northern Michigan

Here in Petoskey, Harbor Springs, Boyne City, Charlevoix, and Bay Harbor, the story mirrors the national picture:

Luxury + waterfront homes are still in demand, but buyers have more time and leverage.

Seasonal homes—especially those listed after summer—are often priced to move before winter.

Primary home inventory is slowly improving, though affordability remains a challenge.

For both buyers and sellers, understanding this new balance is key.

We may not be in a full buyer’s market yet—but we’re no longer in the frenzy of the seller-dominated COVID years either. Instead, Northern Michigan real estate is moving toward equilibrium—where thoughtful buyers and realistic sellers meet in the middle.

Curious how this shift impacts your goals? Let’s talk. Whether you’re looking to buy or sell, I’ll help you navigate today’s market with confidence.