![Is It Still a Seller's Market? Here's What the Data Says. Remember a few years back when sellers held all the power and buyers were stuck offering way over asking or waiving inspections just to get a chance at the house? In many markets, those days are behind us. While it’s going to vary by area, more metros are slowly shifting to favor buyers, and the market is starting to look a lot more like a two-way street again. And that balance is something we haven’t had in a while. Whether you're buying or selling, here's what you need to know about what's changing and what it means for your move. The Most Buyer-Friendly Market in YearsThe national data tells an interesting story right now. According to Realtor.com: "The national housing market is balanced but gradually loosening as the cycle moves in a more buyer-friendly direction . . ." That’s because, over the past few years, more and more metros have been flipping back to more buyer-friendly terms as inventory’s grown. And when you zoom in on the latest Realtor.com data for the top 50 metro markets over time, the trend becomes really clear (see graph below). Back in 2021, almost all major metros were seller's markets. By the end of 2025, only 1 in 3 still favored sellers. That's an obvious shift. And that changes how the market is going to feel for everyone. Sellers shouldn’t still expect 2021 conditions, but neither should buyers. At least, not generally speaking. It’s Not the Same Story EverywhereThat said, who has the power ultimately depends on where you live. While more metros are leaning buyer-friendly lately, there are still plenty of strong seller's markets right now, too. It really comes down to how much housing supply and demand there is in your area. And that varies enormously by region. Sun Belt cities like Austin, Tampa, and San Antonio saw major building booms in recent years, giving buyers more options and more negotiating room. Meanwhile, cities in the Northeast and Midwest – think Rochester, Hartford, and Buffalo – didn't see that same wave, so inventory stayed tight and competition stayed fierce. As Jeff Ostrowski, Housing Analyst at Bankrate, explains: “The formerly hot Sun Belt markets have cooled, while the Northeast and Midwest have stayed hot. The big driver here is construction activity. The softest markets now [have] experienced big booms that spurred new building, and that has led to a large supply of new and existing homes on the market in those places.” Practical Advice for Your MoveTo find out who has the power in your local market, talk to an agent. Because knowing what’s happening locally is going to be the key to setting the right strategy for your move. If the market is working in your favor, great. Lean in and use it to your benefit. But if it’s not, all hope isn’t lost. Your agent can help you figure out how to approach any market. Here's some practical advice if there’s a mismatch between your goal and local market conditions. If you're buying in a seller's market: - Get pre-approved before you start shopping. It shows sellers you're serious. - Be ready to act fast when the right home hits the market. - Consider offering a quick closing date or flexible terms. - Work closely with your agent to craft a competitive offer. If you're selling in a buyer's market: - Price it right from day one. Overpricing will cost you time and money. - Focus on curb appeal and staging to stand out in areas with more inventory. - Be open to offering incentives, like covering closing costs or a home warranty. - Expect buyers to negotiate and be ready to be flexible. Bottom LineRight now, local markets are moving in very different directions. And your strategy as a buyer or seller should reflect your market. Is It Still a Seller's Market? Here's What the Data Says.](https://alstonhomes.com/wp-content/uploads/6-18-26-218x150.png "Is It Still a Seller’s Market? Here’s What the Data Says.")
For homeowners who fall behind on their mortgage payments, mainly due to a sudden financial crisis, such as unemployment and other income loss, unexpected debts, interest rate hikes, or economic downturn, among others — the two main options available are either a short sale or foreclosure.
In both cases, the owner is forced to part with their hard-won investment, turning their homeownership dream into a nightmare.
Let’s take a closer look at what these things are, their differences, and which is the better option for any homeowner depending on their situation and timeline.
A short sale occurs when the homeowner or property holder owes more on the mortgage balance than the sale price of the property at the point they want to sell. It happens when the home has substantially depreciated in market value since its purchase. For example, if the homeowner sells a house for $200,000, but still has a remaining mortgage loan balance of $250,000, that would be a short sale. The homeowner or seller is technically “short” by $50,000.
No short sale may happen without the blessing of the lender. Once the short sale is approved by the lender and the property is sold, all proceeds from the sale go to the lender. The homeowner gets nothing and ideally will be free of any financial obligations for the home.
However, one thing to watch out for is the so-called “deficiency judgment”, which the lender can file against the homeowner to make up for the loss. While many states outlaw this practice, it’s critical that you read over your paperwork or ask about it to ensure you won’t have any personal liability.
A foreclosure, on the other hand, is a legal process that takes place when a homeowner (or borrower, in this matter) stops making mortgage loan payments for a significant period of time. After three to six months of missed payments, a lender will issue a Notice of Default with the county recorder’s office. The notice is to inform the homeowner that foreclosure proceedings have started, and they could be at risk of getting evicted.
After receiving the notice of default, the borrower enters into what’s known as the “pre-foreclosure period”, which can last anywhere from 30 to 120 days. During this time, you’ll have the opportunity to work with your lender to avoid foreclosure, either through any of the following:
- Paying the past due balance in full;
- Modifying the mortgage terms and reducing your monthly payments;
- Selling the home through short sale or deed in lieu of foreclosure.
If the debt isn’t resolved by the end of the pre-foreclosure period, the lender will step in and foreclose on the home. The homeowner will be evicted and a foreclosure auction will be scheduled to sell the house to a third party. If the property isn’t sold at auction, the lender becomes the owner and it’s then considered a bank-owned or real estate-owned property.
| SHORT SALE | FORECLOSURE | |
|---|---|---|
| Homeowner’s involvement | Voluntary by the homeowner but requires approval from the lender | Involuntary for the homeowner; the lender takes legal action to take control of the property |
| Speed and timing | Typically takes 90 to 120 days or even longer, since the bank won’t approve the sale without a buyer agreeing to its demands | Moves along much faster since lenders want to recoup the costs incurred by the unpaid mortgage |
| Impact on credit score | Far less damaging to the borrower’s credit score | Will stay on a borrower’s credit report for seven years |
| Living in the home | Homeowners can stay in the home until the sale is completed | Homeowners are forced to vacate |
| Payment terms (for buyers) | Can be bought with a mortgage loan | Can only be purchased with cash |
| Method of sale | Listed by a real estate agent specializing in short sales | Auctioned |
