Here’s what caught my eye first: We’re entering the busiest homebuying season of the year—but the age-old question of who holds the power in this market isn’t as black-and-white as it used to be. Depending on where you live and what kind of home you’re after, you might be shopping in a buyer’s market… or getting outbid in a seller’s one. That duality makes this year’s housing landscape unlike any I’ve seen in the last decade.

Is 2025 a Buyer’s or Seller’s Market? Here’s What Housing Trends Show

According to a June 2025 U.S. News report, the national housing market continues to show mixed signals. New home sales are rising thanks to aggressive builder incentives, while existing home sales are slowing. Median home prices are up 3.4% year-over-year, but price growth is decelerating. Inventory levels are rising nationally—but still sit 15% below pre-pandemic norms. Meanwhile, mortgage rates hover around 6.6% to 6.99%, putting affordability under pressure.

1. Home Price Growth Is Slowing—But Still Favors Sellers

Price increases have cooled, yes—but they haven’t reversed. In many markets, like San Jose and Detroit, prices are still climbing at double-digit rates. A 3.4% national rise in median home price, when paired with high borrowing costs, means many first-time buyers remain priced out. But here’s the nuance: the monthly pace of appreciation is dropping, which could signal a shifting tide toward buyers later this year.

2. Inventory’s Rising—but Only in the Right Zip Codes

National inventory rose 14% year-over-year, a welcome relief for weary buyers. But look closer: areas like Raleigh and Denver saw big jumps in available listings, while hot metros like Los Angeles and Riverside continue to see shrinking supply. If you’re home shopping in Miami or Cape Coral, you’re likely in a buyer’s market now, given their 10–11 months of supply. But in Seattle or San Jose? Sellers still rule.

3. New Homes vs. Existing Homes: A Tale of Two Markets

Homebuilders are fighting hard to move inventory—and winning. With 60%+ of builders offering incentives, many new homes are now price-competitive with older ones, especially when factoring in energy efficiency and lower maintenance costs. That’s led to a rebound in new home sales, even as existing home sales lag. For buyers, this may be the only place to find wiggle room on price and mortgage terms.

4. Migration Trends Are Flipping—Again

Domestic migration patterns are normalizing. Pandemic darlings like Tampa and Dallas are cooling, while big cities like New York and L.A. are seeing a resurgence in demand. This rebound is being driven by return-to-office mandates, which are reshaping demand maps once again. If you’re betting on long-term property value, consider whether a city’s job base is growing or shrinking.

Smart Moves for Buyers, Sellers, and Investors in 2025

Buyers:

• Explore new construction. Builders are still offering rate buydowns and upgrades—leverage those perks.
• Don’t ignore inventory-rich markets like Cape Coral or Austin where prices are softening.
• Consider renting in overpriced areas until supply builds or rates ease.

Sellers:

• Act now if you’re in a hot market like San Jose, Omaha, or Seattle with low months of supply.
• Avoid going “pocket listing” unless you understand the trade-off in exposure and final price.
• Be aware of new listing policy changes—transparency matters more than ever to today’s buyers.

Investors:

• Rents are cooling and vacancy rates rising in Sunbelt metros like Jacksonville and Cape Coral—factor this into your cap rate math.
• Focus on metros where job growth aligns with improving housing demand, not just historical appreciation.

Quick Explainer:

What is a Buyer’s or Seller’s Market?

A buyer’s market happens when supply exceeds demand—homes stay on the market longer, and buyers can negotiate. A seller’s market is when demand outpaces supply—homes sell quickly, often with bidding wars. Metrics like months of supply (5–6 months = balanced, over 6 = buyer’s market) help define this balance.

What’s Driving the Confusion? Policy and Transparency Battles

One often-overlooked issue: listing policy changes. The National Association of Realtors’ Clear Cooperation Policy—and the new “delayed marketing exempt listings”—mean that many homes never hit the MLS. Compass, Corcoran, and eXp Realty are debating seller “flexibility” vs. buyer transparency. For both sides, this limits data accuracy and price discovery. Buyers should ask if a home was fully marketed, and sellers should consider whether limited exposure is truly in their best interest.

A Subtle Strategy That’s Working Right Now

If you’re serious about buying this year, tech platforms with access to both MLS and new-construction inventory can give you an edge. Tools like Zillow’s builder search or Realtor.com’s listing alerts can help surface deals that might otherwise be buried.

Bonus Q&A: 

Should I wait for rates to drop before buying?

Not necessarily. Builders are offering rate buydowns now, and waiting could mean higher prices later if inventory shrinks again.

Is it worth considering homes that aren’t publicly listed?

It depends. You might find a gem—but less competition could also mean fewer offers, and appraisals might come in low due to lack of comps.

Are rents going to fall more in 2025?

In some markets—yes. Vacancy rates above 6% mean landlords are offering more incentives. But rent declines aren’t universal, so check local trends.

Bottom Line:

This market doesn’t fit neatly into one box. National headlines may say “seller’s market,” but if you’re shopping in Florida, parts of Texas, or looking at new builds, you may have the upper hand. Your best move? Stay informed, compare local metrics, and be ready to act fast when the right opportunity hits