Both buyers and sellers are showing signs of uncertainty
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Cities like Indianapolis are experiencing a surplus of listings, giving buyers more options and negotiating power.
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Despite increased inventory, areas in the Northeast and Midwest remain seller-friendly due to limited supply.
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High mortgage rates and home prices continue to strain buyers, especially first-time purchasers.
The U.S. housing market in June 2025 presents a complex picture, with conditions varying significantly across regions. While some areas are becoming more favorable for buyers, others continue to favor sellers.
In cities like Indianapolis, the market is shifting towards buyers. As of April 2025, there were approximately 1,500 more sellers than buyers in the Indianapolis metro area, a 21% difference, indicating a buyer's market. Nationally, Redfin reports nearly 500,000 more sellers than buyers, the widest gap since tracking began in 2013.
This surplus in listings provides buyers with more choices and potential leverage in negotiations. However, high home prices and elevated mortgage rates continue to pose affordability challenges.
Many regions favor sellers
Despite increased inventory in some areas, many regions, particularly in the Northeast and Midwest, remain seller-friendly. Inventory levels in these areas are still below historical norms, leading to continued competition among buyers.
In these markets, homes priced appropriately are selling quickly, and sellers retain significant negotiating power.
Mortgage rates have seen a slight decline, with the average 30-year fixed rate falling to 6.85% from 6.89% last week, marking the first decrease in a month. Despite this, borrowing costs remain historically high, impacting homebuying affordability.
Uncertainty
If all of this seems a bit confusing, it is. Uncertainty among current homeowners and prospective buyers is at a three-year high, with 60% saying they can't tell whether now is a good time to buy a home or not, compared to 48% two years ago, according to the latest Bank of America Homebuyer Insights Report.
"With so many factors impacting the homebuying market, prospective buyers and current homeowners are left wondering what it all means for them," said Matt Vernon, head of Consumer Lending at Bank of America. "As our research shows, a majority of buyers feel the market is headed in the right direction, but many are still planning to wait for more favorable conditions before they decide to take action."
But despite the uncertainty, the report found 52% of prospective homebuyers are optimistic about the state of the homebuying market, saying it's better now than it was a year ago. Three out of four (75%) expect home prices and interest rates to fall and are waiting until then to buy a new home, up from 62% in 2023.
Posted: 2025-06-10 13:00:05
