The U.S. housing market is undergoing a notable shift in power dynamics as rising inventory and elevated borrowing costs begin to reshape the landscape for both buyers and sellers. According to a new report by Redfin Corporation, the environment has become more favorable to buyers than at any point in the last six years. This change is having profound implications for real-estate agents and brokers, who are now adapting strategies to meet the demands of a more balanced — and in many cases, buyer-leaning — market.
The data show that in September 2025, only 25.3% of homes sold in the United States closed at a price above the listing price. This represents a drop from 28.5% a year earlier and marks the lowest percentage for any September since 2019. In parallel, the average sale-to-list price ratio declined to 98.6%, meaning homes, on average, sold for 1.4% below asking price. This softening of seller leverage is a stark contrast to the intense competition seen during the peak of the pandemic-era housing boom, when bidding wars were common and homes routinely sold far above asking.
Another striking indicator is the length of time homes are taking to sell. The median time from listing to contract in September was 50 days — the slowest pace for that month since 2016. This longer time on market reflects both increased inventory and more deliberate buyer behavior. Buyers are no longer rushing to make offers within hours of a property going live. Instead, they are taking their time, weighing options, and negotiating more assertively.
The increase in housing inventory is a primary driver of this shift. Active listings rose 9.6% year-over-year in September, with approximately 2.085 million homes available across the country. This marks one of the largest annual inventory increases in recent years. The report notes that there are now 36.7% more home sellers than buyers — approaching a record gap — signaling a significant surplus of supply relative to demand.
This excess supply comes at a time when high mortgage rates are dampening buyer enthusiasm. Even though the market is tipping toward buyers, elevated borrowing costs remain a hurdle. Many prospective homeowners are holding off on purchases in the hope that interest rates will decline, while sellers who locked in lower rates during prior years are reluctant to list, unless absolutely necessary. The result is a complex market in which leverage is shifting, but activity remains somewhat muted.
For real-estate professionals, these changes present both challenges and opportunities. The strategies that proved effective during the height of the seller’s market are no longer sufficient. Agents now must guide their clients through a slower, more competitive environment. Sellers, in particular, need to adjust their expectations. Overpricing a home can lead to longer time on the market and eventual price reductions. In this climate, accurate pricing, aggressive staging, and high-quality marketing are more important than ever.
Staging — which might have once been seen as an optional enhancement — has now become essential. With buyers viewing multiple listings and having more time to compare, presentation plays a critical role in attracting offers. Properties that are well-maintained, professionally photographed, and thoughtfully presented tend to stand out. Real-estate agents are investing more time and resources into pre-listing preparation to ensure their clients’ homes are competitive.
Buyers, on the other hand, are beginning to assert more control. With a broader range of options and less pressure to make hasty decisions, many are negotiating harder on price and contingencies. This change is prompting agents to double down on buyer representation, helping clients identify properties that offer good value and negotiating favorable terms. In some regions, buyer’s agents are once again using tools like inspection contingencies, repair credits, and closing cost negotiations — tactics that were often sidelined during the feverish pace of the past few years.
Despite these shifts, the market is not facing a downturn in home values. The median U.S. sale price rose modestly to $435,295 in September, an increase of 1.7% year-over-year. This resilience suggests that while sellers no longer hold all the cards, the market is not in decline. Rather, it is transitioning to a more sustainable rhythm, where pricing, value, and negotiation play more prominent roles.
Geographically, the impact of these trends varies. Markets that saw the most rapid appreciation during the pandemic, such as Phoenix, Austin, and Boise, are seeing the sharpest corrections in seller power. By contrast, some areas with persistent supply constraints or strong job growth, such as parts of the Northeast and Midwest, remain relatively competitive.
Looking ahead, much will depend on the direction of interest rates and broader economic conditions. If mortgage rates ease in the coming months, buyer activity could pick up, absorbing some of the excess inventory. If rates remain elevated, the current buyer-favorable conditions may persist well into 2026. Either way, the new reality is prompting a recalibration across the industry.
For real-estate agents and REALTORS®, this evolving market presents a renewed opportunity to demonstrate value. By offering deeper market insights, data-driven pricing strategies, and proactive client service, professionals who adapt can continue to thrive in a market that is no longer defined by urgency, but by strategy.
Read Also: https://besthouses.com/2025-u-s-housing-market-set-for-perseverance-amid-interest-rate-pressures/
