For a long time, sellers had the upper hand. Homes were flying off the market, bidding wars were everywhere, and buyers had to move fast and offer big.

But today? Things are shifting.

Some markets are still competitive, while others are cooling down—giving buyers more time, more choices, and more negotiating power.

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

In a buyer’s market, there are more homes for sale than buyers. That means:

• Homes sit longer on the market
• Prices stabilize or drop
• Buyers can negotiate more

In a seller’s market, there are more buyers than homes available. That means:

• Homes sell quickly
• Multiple offers are common
• Sellers often get top dollar

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The Market Is Starting To Balance Out

For years, nearly the entire country was deep in a seller’s market. But that’s changing. According to Zillow, the market is cooling and heading toward neutral territory.

As shown in the graph, the orange bars represent the height of the seller’s market (2020–early 2022). But in 2024 and early 2025, more gray bars show up—indicating a neutral market where buyers and sellers have more equal footing.

That means:

• Homes may stay on the market longer
• Price reductions are more common
• Buyers may see fewer bidding wars and more flexibility

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Why Are Things Changing?

Inventory plays a big role.

The more homes for sale, the more balanced the market becomes. And right now, inventory is rising—but unevenly across the country.

According to Realtor.com:

• The South and West are seeing big inventory increases, almost back to pre-pandemic levels
• The Northeast and Midwest still have very limited inventory, so those regions remain strong seller’s markets

This explains why your market may feel totally different than what the headlines say.

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What This Means for You

Even though national data is helpful, real estate is always local. What’s happening in Glendale or Burbank may be very different from what’s happening in Chicago or Phoenix.

Whether you’re buying or selling, it’s important to:

• Know your local market type
• Understand your negotiation power
• Work with a trusted local expert who can guide you

As Zillow puts it:

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

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Bottom Line

The market is no longer one-sided—and that’s a good thing. Whether you're thinking of buying, selling, or just staying informed, knowing where your local market stands is key.