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(NASDAQ: RDFN) — The U.S. housing market has tilted in favor of buyers for the first time this decade, with 3.7 months of for-sale supply sitting on the market in January. That’s the most since February 2019 and up from 3.3 months a year ago, according to a new from Redfin (redfin.com), the technology-powered real estate brokerage.

It’s worth noting that the picture looks different across different areas of the country, with buyers favored across Sun Belt metros, while sellers generally have more power in the Northeast and Midwest.

Historically, four to six months of supply has indicated a buyer’s market, and January was the closest the U.S. housing market has come to four months of supply since 2019.

There are a range of other data points signaling favorability for buyers ahead of the spring homebuying season:

• Sales are slow: Pending sales in January to the lowest mark since the early days of the pandemic in April 2020.
• Listings are sitting longer: The typical home sold in January had been on the market for nearly two months (), the longest period since February 2020.
• Price growth is slowing: The median U.S. home price was up 4.1% year over year in January, the slowest growth since September and more in line with the rate experienced in the late 2010s.
• More negotiation is possible: The typical home sold for 1.8% less than its final asking price in January, the biggest discount in nearly two years.
• Deals are falling through: Home purchases were canceled at the highest January rate since at least 2017 last month.

“Historically, a buyer’s market has been defined as when months of supply reaches 4-6 months—but old definitions don’t fit the reality of today’s market,” said Redfin Economics Research Lead Chen Zhao. “Many buyers don’t feel like they are in a buyer’s market, with home prices at near-record highs and mortgage rates elevated. But we are more than halfway through the decade and this is the first time we can say that buyers have as much, if not more, power than sellers.”

Zhao cautioned that even though the pendulum may have swung in favor of buyers, these conditions may not last long. More buyers may start to move off the sidelines when they realize there’s more inventory available.

Sun Belt metros dominate list of buyer’s markets, while sellers are still favored in the Northeast

There is more inventory for buyers to choose from—and therefore more room for negotiation—across the Sun Belt states. This is particularly the case in Florida, which has six of the top 10 major metros with the most months of supply.

Cape Coral, FL tops the list, with 11.6 months of supply in January, up from 8.6 months a year ago. Next comes Miami (11.4 months of supply, +3 months year over year), McAllen, TX (10.5 months, +2.5 months YoY), Fort Lauderdale, FL (10.3 months, +2.9 months YoY) and West Palm Beach, FL (9.6 months, +1.8 months YoY).

Florida tops the list of buyer’s markets because the pandemic-driven construction boom has increased housing supply as buyer demand dries up due to the relative lack of affordability. Demand has also dropped because of the increased risk of natural disasters and subsequent higher .

“It’s 100% a buyer’s market right now,” said , a Redfin Premier agent in . “There’s a ton of inventory. Everywhere you go, there’s a house for sale. Most sellers here know the market is bad and it’s not advantageous to sell right now, but either they’re tired of waiting for things to improve, or they really have to sell because they are moving out of state. For buyers, this means there are more opportunities to negotiate on price and terms.”

At the other end of the spectrum, major markets across the Northeast still tilt in favor of sellers, with limited supply available due to higher buyer demand.

Rochester, NY had 1.1 months of supply in January (-0.1 months year over year), the least amount of the 100 most populous metros Redfin analyzed. Next came Buffalo, NY (1.2 months of supply, -0.2 months YoY), Hartford, CT (1.4 months of supply, -0.3 months YoY), Grand Rapids, MI (1.5 months of supply, no change YoY) and Worcester, MA (1.6 months of supply, no change YoY).

"Rochester's seller's market is driven by a severe shortage of homes for sale, and few homeowners have chosen to list during this year's cold, snowy winter," said Kimberly Hogue, a Redfin Agent in Rochester. "Home listings that are in decent shape and in sought-after neighborhoods are met with a flurry of buyers. These homes typically go quickly and for well over list price."

To view the full report, including methodology and additional metro-level insights, please visit:

About Redfin

Redfin () is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit . To learn about housing market trends and download data, visit the . To be added to Redfin's press release distribution list, email . To view Redfin's press center, .

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