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US buyers drop to record low in July as sellers outnumber buyers
Redfin estimates about 966,752 buyers in the market, down 2.5% from the prior month, with sellers still around 1,462,921.
Home sellers outnumbered homebuyers across the United States in July, keeping leverage with buyers, according to Redfin News. The share of sellers exceeded buyers by 51.3%, just shy of December’s peak of 51.8% and up from 47.9% the month before.
Redfin estimates the number of homebuyers in the market fell to a record low of about 966,752 in July, a 2.5% month-over-month decline. At the same time, the estimated number of home sellers was about 1,462,921, down 0.3% from the prior month, leaving nearly half a million more sellers than buyers.
Redfin links the ongoing buyer-seller imbalance to historically high housing costs and broader economic uncertainty that has led some would-be buyers to step back from the market. The outlet also points to uncertainty around whether the Fed will hike rates and rising mortgage rates this summer as factors keeping many buyers on the sidelines.
Redfin said it defines a buyer’s market when there are more than 10% more sellers than buyers, and nearly 80% of major US metros now fall into that category, including Miami and Nashville, and several parts of Texas where sellers outnumber buyers by the widest margins. Redfin notes that the current window through Labor Day could offer a negotiating sweet spot for buyers who can afford to purchase.