The estimated number of active U.S. homebuyers fell to a record low in July, widening the gap between buyers and sellers and shifting more housing markets in buyers’ favor, according to a new report.
There were an estimated 966,752 buyers in the market in July, down 2.5 percent from June, compared with about 1.46 million sellers, according to an analysis released on Thursday by real estate brokerage Redfin.
Nationwide, there were 51.3 percent more sellers than buyers in July, up from 47.9 percent in June and just below the record 51.8 percent gap reached in December 2025.
The widening imbalance was driven primarily by weakening demand rather than a surge in supply, according to Redfin. The number of sellers actually declined 0.3 percent from June to its lowest level in a year, but the number of buyers fell much faster.
“Buyers are dropping out faster than sellers, giving the buyers who remain more options and more negotiating power,” said Asad Khan, a senior economist at Redfin.
Miami, Nashville Lead Buyer’s Markets
Redfin considers the market a buyer’s market when there are more than 10 percent more sellers than buyers. By that measure, 39 of the 49 major metropolitan areas analyzed by the company were buyer’s markets in July.
Miami was the strongest buyer’s market in July, with an estimated 154 percent more sellers than buyers. It was followed by Nashville at 151 percent; Houston at 130 percent; San Antonio at 116 percent; and Austin at 112 percent.
Miami and Nashville experienced a wave of new construction and investor activity during the pandemic-era housing boom. That supply is now competing for buyers in a much slower market.
In Miami, rising insurance costs, increasing homeowners association fees and climate risks have added to already-high housing costs, according to Redfin.
Houston, San Antonio, and Austin, meanwhile, have some of the nation’s most active homebuilding pipelines, with newly built homes continuing to reach the market even as buyer demand cools.
The shift toward buyers has accelerated across much of the country. In 34 of Redfin’s 39 buyer’s markets, the surplus of sellers over buyers increased from June to July.
Affordability Still Keeps Many Buyers Out
With all that said, a buyer’s market offers little relief for prospective buyers who cannot afford to enter the market in the first place.
“Uncertainty around whether the Fed will hike rates—and this summer’s rising mortgage rates—are keeping many would-be buyers on the sidelines,” Khan said.
“That makes the stretch between now and Labor Day a potential sweet spot for people who need to move: Buyers have leverage, while motivated sellers may be willing to negotiate before the early-fall rush brings some buyers back to the market.”
Mortgage rates climbed throughout much of July, adding to affordability pressures.
The average rate on a 30-year fixed mortgage stood at 6.66 percent for the week ending July 30, up from 6.43 percent at the beginning of the month, according to Freddie Mac. As of Aug. 13, the rate was 6.67 percent.
Elevated borrowing costs have come on top of home prices that remain near record highs.
The median price of an existing U.S. home rose 2 percent from a year earlier to $434,100 in July, marking the 37th consecutive month of year-over-year price increases, according to the National Association of Realtors. The median had reached an all-time high of $442,800 in June.
Existing-home sales, meanwhile, fell 1.7 percent from June to a seasonally adjusted annual rate of 4.06 million in July, although they remained 0.7 percent higher than a year earlier.
