Inventory Surge Leaves Just Five US Metros Favoring Sellers
New York, Sunday, 25 January 2026.
Analysis confirms a drastic market correction leaving only five sellers’ markets nationwide, while Austin, Texas, epitomizes the shift with 128% more sellers than buyers, signaling widespread price cooling.
A Historic Divergence in Supply and Demand
As of late January 2026, the United States housing market is defined by a widening chasm between supply and demand. Data from December 2025 highlights that there were 47% more sellers than buyers nationwide, marking the most significant disparity observed in a decade [1]. This surge in inventory relative to demand has fundamentally altered the market landscape, effectively ending the seller’s market era for the vast majority of the country [1]. Analysis indicates that the total number of buyers fell by 5.9% in December to approximately 1.3 million, the lowest level recorded since 2013, further exacerbating the imbalance [2].
Regional Disparities: The Sun Belt vs. The Northeast
The shift in leverage is not uniform across the nation, with the Sun Belt bearing the brunt of the cooling trend while a few pockets of resilience remain. Austin, Texas, epitomizes the buyer’s market, recording 128% more sellers than buyers in December 2025 [1]. Similar surpluses were observed in Fort Lauderdale (125%), Nashville (111%), Miami (103%), and San Antonio (103%) [1]. Conversely, only five identifiable sellers’ markets remain, primarily concentrated in the Northeast and Midwest [1]. Nassau County, New York, stands as the strongest remaining seller’s market with 33.4% fewer homes available than buyers, followed by Montgomery County, Pennsylvania; Newark and New Brunswick, New Jersey; and Milwaukee, Wisconsin [1].
Pricing Adjustments and Inventory Milestones
The accumulation of inventory is exerting downward pressure on home values. For the first time in nearly three years, the median U.S. listing price has slipped below $400,000 as of January 24, 2026 [1]. This national trend is reflected locally, with 26 of the country’s 50 largest metropolitan areas now experiencing year-over-year price declines [1]. Austin has seen the most dramatic correction among major metros, with prices plunging 7.3% over the past year to $462,000 [1]. Broader analysis shows that while 194 major housing markets are still posting annual gains, 106 markets have stabilized into year-over-year price declines [4].
Policy Interventions and Economic Headwinds
In an effort to stimulate the market, the Trump administration recently directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities [3]. This intervention successfully tightened mortgage spreads, pushing the 30-year mortgage rate below 6% for the first time since 2022 [3]. However, financial analysts at Morgan Stanley have characterized these measures as only “modestly helpful” for homeowner affordability, citing the structural constraints of the market [3]. Furthermore, 40% of U.S. homes are owned without a mortgage, insulating a large portion of the market from rate-based incentives [3].