Residential Real Estate News
U.S. Housing Market Shows Record Imbalance: 630,000 More Sellers Than Buyers
Miami Leads Buyer's Market Surge with 1.6x More Sellers Than Buyers
The U.S. housing market is tilting sharply in favor of buyers, with February 2026 seeing a record 46% more home sellers than buyers, according to a new report from Redfin. In absolute terms, that amounts to roughly 629,808 more homes on the market than buyers seeking them, marking the widest gap since Redfin began tracking the data in 2013.
A year earlier, sellers exceeded buyers by 29.8%, or 449,409 homes. Redfin defines a market with more than 10% more sellers than buyers as a "buyer's market," a status the U.S. housing market has held since May 2024.
"When sellers outnumber buyers this heavily, it gives buyers significant negotiating power, provided they can afford to buy," said Justin Gomez, a Redfin Premier agent in Omaha, Nebraska. "We're seeing much more inventory than in the past two years because mortgage rate lock-ins are easing and new construction is ramping up. For younger buyers, this is improving affordability. Two years ago, bidding wars of $15,000 over asking were common; now buyers have options."
Buyer Retreat Spurs Some Sellers to Pull Back
Redfin's data shows the number of homebuyers declined 2.4% month-over-month in February to an estimated 1.36 million, while sellers fell only 0.4% to roughly 1.99 million. Rising mortgage rates, elevated home prices, layoffs, and economic uncertainty have led many prospective buyers to step back, prompting some homeowners--many of whom are themselves potential buyers--to delay or cancel listings.
Relistings are beginning to tick upward, suggesting housing supply could expand, and new listings posted their second consecutive week of growth after four months of declines.
Southern Cities Offer the Best Bargains
The strongest buyer's markets are concentrated in the Sun Belt. Miami led with an estimated 163% more sellers than buyers, followed by Nashville (120%), Austin (112%), West Palm Beach (110%) and San Antonio (104%). The surge in southern housing supply reflects both high levels of new construction and a slowdown in buyers, particularly those priced out by rising home costs.
"New construction heavily influences negotiating power," Redfin notes, as the South and West have historically issued the most building permits, while the Northeast and Midwest lag behind. Florida and Texas in particular continue to add inventory, though Florida faces challenges from rising insurance costs, natural disasters, and increasing condo fees, which have driven some homeowners to leave.
Northeast Remains Seller-Friendly
By contrast, the strongest seller's markets are concentrated in the Northeast. Newark, New Jersey topped the list, with 31.1% fewer sellers than buyers. Other tight markets included Montgomery County, Pennsylvania (-29%), Nassau County, New York (-25.8%), Milwaukee (-25.2%) and New Brunswick, New Jersey (-14.5%).
Across these five markets, home prices rose an average of 2.2% year-over-year in February, compared with a modest 0.3% increase in the 37 identified buyer's markets, underscoring the leverage advantage held by buyers in areas with excess inventory.
