U.S. Housing Market Shifts Toward Buyers in Summer 2026

The U.S. housing market shifted in favor of buyers during the summer of 2026, marked by increased inventory and greater negotiating power. By August, Redfin reported that sellers outnumbered buyers by 58 percent, the widest gap in more than a decade. While a price crash did not occur, Realtor.com found that the median listing price fell 2.4 percent compared to July of the previous year.

Sellers have adapted by listing homes more realistically from the start to avoid price cuts. This trend has led to fewer homes being marked as on sale, though buyers now face more incentives, including seller-paid closing costs and other concessions. This increase in selection allows buyers more choice than in previous years when bidding wars often dictated purchases.

However, affordability remains a primary challenge. Mortgage rates topped 7 percent in September 2026 for the first time in over a year. This rise in borrowing costs coincides with a period where more homes are lingering on the market, creating a complex environment where increased selection is offset by higher financing costs.