Map Reveals Where Home Sellers Outnumber Buyers by Record Margin

A new map showing the U.S. housing market highlights a record 63-percent surplus of home sellers over buyers, according to Redfin data. Buyer interest has plummeted to its lowest level since 2013, while sellers have reached their highest level since early 2020, when the pandemic drove a surge in homebuying due to historically low mortgage rates.

In September, there were over 1.5 million sellers in the U.S. housing market, up 1.2 percent from the previous month. The market gap marked the largest since the post-recession housing crash.

Rising mortgage rates, inflation, and rising gasoline and diesel prices have contributed to the increased surplus of sellers. In August, the seller-buyer gap widened by nearly 6 percent, with sellers outnumbering buyers by 56.9 percent. The average 30-year fixed-rate mortgage reached 5.98 percent at the end of last year, but it has since climbed to 7.4 percent, as the Federal Reserve raised interest rates for the first time in three years. This rate increase has made it more challenging for buyers to enter the market.

However, some areas show promise for buyers. In 41 of the 50 most populous metropolitan areas in the U.S., buyers have the upper hand, with the number of sellers exceeding buyers by more than 10%. But these opportunities come with a catch – buyers must have the budget and job security to afford today's market. Economist Asad Khan noted that this market situation is a result of buyer caution rather than strength.