T
he US housing market may be cooling off after years of intense bidding wars, but prices are still rising. A new report from Redfin shows that the number of home sellers now far exceeds the number of buyers, a shift not seen since 2013. As of April, there were nearly 500,000 more homes on the market than buyers actively looking.

    This imbalance suggests a broader market slowdown, driven by fewer people willing or able to buy, rather than falling prices making homes more affordable. To sell, homeowners may need to reduce their asking prices for the pool of active buyers.

    Despite this cooling demand, home prices continue to climb. The median sales price for an existing home rose 1.8% year-over-year in April to a record $414,000, according to the National Association of Realtors. This marks the 22nd straight month of annual price growth, even as affordability erodes.

    Elevated mortgage rates, hovering just under 7%, are deterring new entrants during what's typically the busiest season for home shopping. Higher borrowing costs compound monthly payments and make homes less affordable. Economic jitters, including a volatile stock market and global trade concerns, are also making consumers more cautious.

    As listings sit longer on the market, sellers are increasingly offering concessions or cutting prices to remain competitive. Redfin estimates that buyer activity is at its lowest point since the pandemic began, with 75% of potential buyers waiting for both home prices and interest rates to decline before making a move.

    Redfin projects a modest 1% national price decline by year's end, citing seller reluctance to lower prices unless forced to sell. However, the company doesn't expect a major price correction, as it takes time for changes in the seller-buyer ratio to impact home prices.