Housing Market Shifts Toward Balance: What Buyers and Sellers Need to Know

Real Estate Agents Report Surge in Balanced Markets: 44% Now See Equilibrium

CNBC's second-quarter Housing Market Survey found 44% of agents reported a balanced market, up from 30% in the third quarter of last year. This marks a significant shift after years of seller dominance, indicating more equitable conditions are taking hold across the U.S.

44% of agents reported a balanced market, up from 30% in the third quarter of last year.

Agents report that sellers are becoming more realistic with pricing, reducing the frequency of failed contracts and price cuts. The data reflects a market that has cooled from the frenzied pandemic-era peaks, though affordability remains a headwind. Mortgage rates—averaging around 6.6% for a 30-year fixed loan—continue to limit buyer activity, but the balance between supply and demand is steadily improving.

• Balanced market share rose from 30% to 44% year-over-year.
• Sellers are adjusting pricing expectations, leading to fewer failed contracts.
• Agent optimism for near-term sales growth has declined, with only 19% expecting improvement versus 48% last year.

Rising Inventory and Slower Price Growth Reshape Buyer-Seller Dynamics

Home sales improved slightly in May, up 3% year over year, driven by increased supply and easing prices. Inventory sits at about 1.1 million homes for sale—well above the post-pandemic lows—though still historically tight. The extra stock gives buyers more options and reduces the urgency that defined the seller's market.

Asking prices have responded. Realtor.com reported a 2.5% year-over-year drop in June, the largest decline since tracking began. While overall home prices remain slightly higher than last year, the downward pressure on asking prices signals that the market is recalibrating. Agents also note fewer price cuts and fewer failed transactions as sellers align expectations with current conditions.

Realtor.com reported a 2.5% year-over-year drop in June, the largest decline since tracking began.

• May sales rose 3% year over year on improved supply.
• Asking prices fell 2.5% year over year in June, a record decline.
• Approximately 1.1 million homes are for sale, supporting buyer choice.

What the Shift Means for Buyers and Sellers: Strategies for a Balanced Market

Buyers now have more negotiating power than they've had in years. With less competition and greater inventory, there is time to shop, compare, and negotiate. Patience is key, as the days of bidding wars and waived contingencies fade. Agents report that sellers are adapting by pricing homes competitively from the start, reducing the need for mid‑listing price cuts.

For sellers, the playbook has changed. Homes must be priced accurately and staged effectively to stand out. The market no longer guarantees a quick sale at any price. Sellers who invest in presentation and research local comps will close deals faster. Despite the balance, affordability remains a challenge—the average 30-year fixed mortgage rate hovers around 6.6%, keeping monthly payments elevated.

Only 19% of agents expect sales to improve over the next year, compared with 48% last year.

• Buyers gain leverage: more inventory, less urgency, room to negotiate.
• Sellers must price competitively and stage homes to attract serious offers.
• The market reduces volatility, benefiting long-term stability.

Key Takeaways

• The U.S. housing market is moving toward balance, with 44% of agents reporting equilibrium.
• Asking prices have dropped 2.5% year over year, the largest decline since tracking began.
• Home sales increased 3% in May, supported by higher inventory and more realistic pricing.
• Buyers have more leverage; sellers must price accurately and prepare homes for showings.
• The shift reduces the number of failed contracts and price cuts, stabilizing the market.
• A balanced market benefits long-term market health by reducing speculative pressure.