A Tale of Two Housing Markets

For the past few years, it felt like sellers were driving the market with a firm grip on the wheel. Multiple offers, bidding wars, and lightning-fast sales became the norm. But as we approach the midpoint of 2025, we’re starting to see a noticeable shift. Some markets are cooling, inventory is rebounding in select areas, and a sense of balance is returning. In short? We’re living in a tale of two markets—and knowing which one you're in is key to your real estate strategy.

What’s the Difference Between a Buyer’s Market and a Seller’s Market?

Before we dive in, here’s a quick refresher:

· Buyer’s Market – More homes are for sale than buyers looking to purchase. Homes take longer to sell, buyers have more negotiating power, and prices may soften.
· Seller’s Market – Demand outweighs supply. Homes sell quickly, bidding wars are common, and sellers often command top dollar.
· Neutral Market – Neither buyers nor sellers have a clear advantage. Think of this as a middle ground, where fair deals happen, and both sides negotiate with more balance.

The Market Is Starting To Balance Out

Over the last few years, the U.S. housing market leaned heavily toward sellers. The pandemic-era surge pushed demand to historic highs while supply remained tight. But recently, data from Zillow shows the heat has cooled.

This chart reveals a clear trend: from mid-2020 to early 2022, the market was deeply entrenched in a strong seller’s market (the orange bars). But since then, the heat has gradually faded. By early 2025, we’re seeing more gray bars, representing a neutral market—a sign that buyers are beginning to regain some leverage.

What does that mean in real terms? More time to make decisions, fewer bidding wars, and greater opportunity for negotiation. While sellers can still benefit from strong pricing in many areas, the days of waiving every contingency just to win a bid may be behind us—for now.

Why the Shift? Inventory Growth Is a Big Factor

One of the most critical factors in this market evolution is inventory. When more homes are available, buyers have more choices—and that naturally tempers competition and price acceleration.

Take a look at this regional breakdown from Realtor.com:

· The South and West have seen the biggest year-over-year inventory jumps, with increases of over 30% and even 40% in some cases.
· In contrast, the Northeast and Midwest are still struggling to regain pre-pandemic inventory levels. Compared to 2017–2019, both regions remain down by over 45%.

This geographic divide means your experience buying or selling a home could look very different depending on where you are. In the South or West? You might encounter more options and softer pricing. In the Midwest or Northeast? You’re more likely to face tighter competition and faster-moving listings.

What This Means for You

Whether you're buying, selling, or just watching from the sidelines, the message is the same: real estate is local.

National trends paint part of the picture, but your city, your neighborhood—even your street—may tell a different story. That’s why partnering with a local expert matters more than ever.

As Zillow puts it:

“Agents are experts on their local markets and can craft buying or selling strategies tailored to local market conditions.”

At Waymaker Realty Advisors, we understand how to interpret and respond to these market signals. Whether you’re prepping your home to stand out or crafting a smart offer as a buyer, we’re here to help you navigate with confidence—no matter which way the market leans.

Bottom Line

The market is no longer one-size-fits-all. With balance returning and inventory shifting in pockets across the country, your best move starts with clarity.

Thinking of buying or selling this season? Let’s talk. We’ll help you identify exactly what kind of market you're working with—and create a game plan tailored just for you.

📍 Your Advisor and Partner for the Best Real Estate Journey.
📞 Contact Waymaker Realty Advisors today to get started.