Homebuyers

The Housing Market Finally Finds Balance: What it Means for Buyers This Fall

For the last several years, home shoppers have been at a disadvantage. A historic shortage of listings collided with pandemic-era demand, pushing home prices skyward and leaving sellers firmly in control.

Now, the ground is finally shifting. The U.S. market has reached five months of supply of housing stock, according to Realtor.com’s August Monthly Housing Report. That’s the benchmark for a balanced market.

“The national housing market is now more balanced between homebuyers and sellers,” said Danielle Hale, chief economist at Realtor.com.

Also of note: this is the first time since Realtor.com began tracking the measure in 2016 that balance has appeared in the thick of summer. The season is usually the busiest season for homebuying and selling.

For anyone planning to buy a home this fall, this statistical milestone may be a signal that the frenzied, seller-dominated landscape of recent years is giving way to a market where buyers have the upper hand.

What a balanced housing market really means

A “balanced” market may sound abstract, but it’s actually rooted in a simple rule of thumb. Months of housing supply measures how long it would take to sell through all current listings at the present pace of sales.

A market with fewer than four months of supply of homes means sellers have the advantage. A supply of four to six months signals a balanced market. And a six-month or more supply equals a buyer’s market.

With the housing supply now at a five-month level, the national market has reached a level playing field. However, that doesn’t remove local differences. Some areas of the country still favor sellers, while others are shifting toward buyers. 

“The takeaway for buyers and sellers alike is that local conditions, not national headlines, are what matter most for pricing, competition, and timing,” said Hale.

A deeper pool of homes is for sale this fall

After years of record lows, the number of homes for sale has increased for nearly two years straight, according to the Realtor.com data. In August, active listings exceeded 1.1 million. That’s more than double the pandemic low.

While that doesn’t mean buyers are suddenly spoiled for choice everywhere, the increase is significant. Compared to the desperate days of 2021, when buyers sifted through limited options, this fall presents a much broader selection of homes. 

It’s important to note, however, that the growth in supply has slowed since spring. Still, the recovery to date has been sufficient to ease some of the pressure-cooker conditions that defined the housing market in recent years.

Homebuyers now have more time and less pressure to make a decision

One of the clearest signs of a balanced market is that homes are taking longer to sell. In August, the typical listing lingered seven days longer than it did a year ago. This continues a trend of slower sales.

That shift also matters for buyers this fall. Instead of rushing into a bidding war or feeling pressure to make an offer after a single showing, shoppers can take their time. They can schedule second visits, consider their financing options, and negotiate without fearing the house will disappear within hours.

You can also make an offer that includes contingencies or inspections.

“A balanced housing market means buyers finally have more options, more time, and more negotiating power after years of intense competition,” said Realtor.com senior economic research analyst Hannah Jones.

Indeed, buyers are gaining leverage. Home sellers are increasingly adjusting expectations, with about one in five listings seeing price cuts in August.

For buyers, this opens the door not only to lower prices but also to concessions such as repairs or assistance with closing costs.

“Buyers [are] in a better position than they’ve enjoyed in the past several years with more options to choose from and less pressure to make an offer instantly or risk losing out,” said Hale.

Home sellers are recalibrating to secure a sale

Balance also shows up in how sellers are behaving. Many who listed this summer have had to reckon with cooler demand, and some are pulling back altogether.

The number of delistings, when homes are pulled off the market, has surged compared to last year. This is more evidence that owners aren’t always getting the offers they hoped to receive.

For buyers, this is a reminder that not every home on the market is priced realistically. Some listings will sit until sellers come around and reduce the price, while others may disappear entirely if owners decide to wait.

The takeaway is that patience can pay off. Homes that start overpriced often see cuts or reappear later at more approachable levels.

The fall housing market is shifting to favor homebuyers

Fall can be one of the best times of year for buyers, when competition naturally eases after the summer rush. And this fall offers a market where the national dynamics truly sit in the middle.

If you’re shopping in today’s balanced market, you don’t have to rely on luck or speed alone. Conditions now give buyers more options to shape the deal.

Mortgage rates have also been shifting in favor of buyers lately, with rates falling into the low 6% range, according to Freddie Mac data.

“Affordability is still stretched, but we’ve seen mortgage rates,” said Hale. “[This] is setting up a favorable fall for shoppers.”