T
he US housing market is experiencing a significant shift, with buyers now holding the upper hand. There are approximately 1.9 million homes for sale nationwide, but only about 1.5 million active homebuyers, leaving a record gap of nearly 500,000 properties. According to Redfin, this imbalance has been exacerbated by sellers who remain optimistic that their homes will fetch top dollar despite the cooling market.

    Home prices have begun to dip, with a 3.9% year-over-year increase in February, down from January's 4.1% gain. The growing supply of homes and easing mortgage rates are contributing to this slowdown, as seen in the S&P CoreLogic Case-Shiller Home Price Index. As listings rise and buyers become more selective, sellers are facing a tough decision: is now the right time to sell?

    Redfin economists predict that home prices will dip by about 1% by the end of 2025, while sales of existing homes have already fallen 1.1% year-over-year in April, hitting a six-month low. With economic uncertainty and shifting federal policies causing would-be buyers to hesitate, sellers are feeling the impact. A recent sale in Sonoma, California, saw a single-family home sell for nearly half its original price after several price cuts.

    If you're thinking of selling your home, it's essential not to wait too long. Listing sooner can help you avoid chasing a cooling market. If your home is already listed and not generating interest, consider adjusting your asking price or making small upgrades to make it more attractive to potential buyers.