The Buyer’s Advantage Is Here: How 2025 Is Shifting Power in the Housing Market

If 2024 was marked by fierce bidding wars, soaring home prices, and frantic buyer competition, then mid-2025 has flipped the script. A seismic shift now places savvy buyers squarely in the driver’s seat—and as a broker navigating these turning tides for over a decade, I can tell you: this might be your moment.

What's Driving the Shift to a Buyer’s Market?

1. Homes Selling Beneath Asking Price

As of May 2025, more than 56% of U.S. homes sold for less than their asking price, with typical sales closing around $45,000 under list. That’s a dramatic swing from years of constant over-asking transactions.

2. Listing Times Are Lengthening

On average, homes are spending 58 days on the market—a full week longer than last year. In many formerly hot markets like Nashville, Orlando, Miami, and Tucson, properties are staying listed even longer.

3. Inventory Is Building, Especially Regionally

Inventory has swelled notably in areas like Toledo (+128%) and Savannah (+108%). Although luxury urban hubs still face tight supply, many regions are offering buyers more options.

What Does This Mean for Buyers?

• Negotiating Power Reigns: Buyers now have the leverage to secure concessions—from price reductions to seller-funded repairs and closing costs.

• Less Pressure, More Strategy: With fewer frenzied offers, buyers can act more thoughtfully and objectively.

• Opportunities in Previously Hot Markets: Even once red-hot locales are cooling—translating into potential value spikes for savvy buyers who enter now.

Why Is This Happening?

• Affordability Is Straining Demand: High mortgage rates (hovering around 7%) and elevated listing prices are pushing many buyers to step back.

• “Lock-In” Effect in California: In many regions—including California, where I operate—the disparity between current homeowners’ low mortgages and today’s high rates discourages them from listing, keeping supply limited.

• Shift from a Heated Seller’s Market: A wave of cautious listing behavior is emerging—sellers are weighing options and price expectations more carefully.

Broker Tips for Buyers (Now Is the Time!)

1. Prioritize Preparation
   Pre-approval is your golden ticket. Sellers want assurance buyers are financially ready—not just hoping.

2. Look Beyond Price—Ask for Extras
   With more room to negotiate, consider requesting appliances, repairs, or closing assistance.

3. Let Patience Pay Off
   Homes are staying on the market longer. Use every extra viewing to your advantage.

4. Target Underserved Markets
   Areas with rising inventory or slower movement may yield great deals. Be open to emerging opportunities.

5. Don’t Wait on Rate Drops
   While some forecasts hint at mortgage rates easing slightly, affordability today isn’t a sure future. If your finances are secure, it may be wiser to act than wait.

What This Means for Sellers

If you’re selling, realistic pricing and proper presentation are non-negotiable to stay competitive. With more homes available and expectations shifting, overpricing risks extended listing periods and missed opportunities.

Final Thoughts

This buyer-centric market doesn’t just favor savvy homebuyers—it revitalizes the role of experienced advisors like us. Helping clients strategize smart offers, navigate concessions, and interpret shifting signals has never been more rewarding. With disciplined planning and smart insight, buyers can really win right now.