- Nearly 35% more sellers than buyers in April 2024
- 490,000 fewer active buyers compared to sellers nationwide
- 11 major metros report declining home prices since April
- Miami sellers outnumber buyers 3:1 while Newark favors sellers
The U.S. housing market faces unprecedented imbalance as homeowners flood listings while prospective buyers retreat. Current 30-year mortgage rates hovering near 7% have created financial barriers unseen since the early 2000s, with Redfin data showing the largest April inventory surplus in recorded history. This reversal from pandemic-era bidding wars forces sellers to reconsider pricing strategies and incentive packages.
Construction material costs rising 18% since 2020 continue limiting new affordable housing developments, exacerbating inventory shortages below $260,000. Remote work migration patterns compound regional disparities, with tech hub markets like Oakland seeing price corrections while Midwestern cities maintain stability. Institutional investors now control 3% of single-family homes nationally, further reducing entry-level inventory.
Realtor.com reports 19% of listings now include seller concessions like closing cost assistance or rate buydowns. In Dallas, average days on market have increased 22% year-over-year, prompting 27% of sellers to reduce asking prices. Jacksonville homeowners increasingly offer flexible closing timelines to attract remaining qualified buyers.
The National Association of Realtors warns only 21% of listings remain affordable for median-income households, down from 45% pre-pandemic. Wage growth trailing home price appreciation by 31 percentage points since 2018 creates systemic challenges. Redfin economists predict national prices will dip 1% by December, though luxury markets and coastal cities face steeper corrections.
Miami's dramatic 3:1 seller ratio reflects pandemic-era overdevelopment of luxury condos meeting resistance from price-sensitive buyers. Conversely, Newark's inventory shortage highlights persistent demand in Northeast job centers. Industry analysts suggest targeted down payment assistance programs and ADU construction incentives could help rebalance markets.
