For Sale, But No Takers: The US Housing Market's Awkward Standoff

The housing market is witnessing a disparity between the number of sellers and potential buyers.

What Happened: The main reason behind this imbalance is the affordability concerns among potential buyers, leading to a rise in inventory and possible price reductions, as per a report by Zillow.

According to the report, sellers listed over 375,000 homes in the previous month, a 32% surge from the month prior, and a 9% increase year-over-year. However, the growth in buyer activity did not keep pace with this surge, resulting in flat pending home sales compared to the previous year.

This mismatch led to a net increase of 110,000 listings, pushing the overall inventory up by 19% year-over-year to 1.15 million, the highest since March 2020. Despite the low mortgage rates in March 2025, high home prices have deterred buyers, leading to higher mortgage payments.

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Skylar Olsen, Zillow’s chief economist, told the outlet, “While sellers leaned on the gas, buyers didn’t keep up.” This resulted in 23% of listings on Zillow experiencing a price reduction in March, the highest percentage since 2018.

However, Zillow’s Market Heat Index indicates that the housing market has largely favored sellers over the past five years, only shifting to a “sellers market” in March for the first time since June of the previous year.

Why It Matters: The current buyer-seller mismatch in the housing market is a clear indication of the affordability concerns among potential buyers. Despite the increase in listings and potential price cuts, high home prices continue to be a deterrent.

This situation, if it persists, could lead to a significant shift in the housing market dynamics, with potential long-term impacts on both buyers and sellers.

The role of factors such as mortgage rates and overall economic conditions will also be crucial in determining the future trajectory of the housing market.

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