T
he US housing market may be shifting in favor of buyers, with a significant imbalance between home sellers and buyers. According to Redfin's analysis, there were nearly 500,000 more home sellers than buyers as of April, the largest gap since 2013. This trend suggests that the market may be slowing down due to fewer buyers, rather than decreasing prices.

    Despite this shift, home prices continue to rise, with the median existing home sales price reaching an all-time high in April at $414,000. Elevated mortgage rates are also contributing to increased monthly expenses for new borrowers, with the average 30-year fixed mortgage rate hovering just under 7%.

    Prospective homebuyers are becoming increasingly cautious due to economic uncertainty and rising interest rates. A Bank of America survey found that 75% of potential buyers are waiting for prices and interest rates to fall. Redfin notes that there have been this many homes on the market since March 2020, but never so few buyers.

    Real estate agents like Karen Pohl in Las Vegas are reporting a shift in favor of buyers, with listings sitting longer on the market and sellers offering concessions or price cuts. Redfin estimates a 1% drop in home prices by the end of this year, citing the ratio of sellers to buyers as a predictor for home price growth.