Home sellers in the US outnumbered buyers by nearly 500,000 in April, finds a Redfin survey. It is the widest gap since the real estate firm began collecting data in 2013.
Analysts attribute this shift to persistently high home prices and mortgage rates, which have made purchasing a home more expensive than ever.
The median home price hit $414,000 in April, a record for the month and the 22nd straight year-over-year gain, according to data from the National Association of Realtors (NAR).
Mortgage rates are hovering just below 7%, prompting many would-be buyers to delay purchases in hopes of better deals.
A Bank of America survey released this week found that 75% of potential homebuyers say they’re waiting for better deals.
Economic uncertainty and inflation—exacerbated by former President Donald Trump’s tariffs—are also fueling buyer hesitation.
As a result, home listings are staying on the market for longer periods. Redfin forecasts a modest 1% decline in home prices by the end of 2025, noting that sellers are more inclined to wait than to make steep price cuts.