Who Holds the Power in Today’s Real Estate Market?

Who Holds the Power in Today’s Real Estate Market?

If you’re buying or selling a home in 2025, you might be asking the same question as everyone else: Who has the upper hand in today’s market?

After years of sellers dominating the market, the dynamic is changing. Homes are staying on the market longer. Price reductions are more common. And incentives that would’ve been unheard of two years ago—like seller credits and mortgage buydowns—are popping up in more deals.

But let’s be clear: this isn’t a full-blown buyer’s market. In many areas, sellers still have an edge, just not as much as they did before.

What is a Buyer’s Market?

In simple terms, a buyer’s market happens when there are more homes for sale than there are buyers. That shift gives buyers more options, time to make decisions, and room to negotiate.

The U.S. isn’t quite there yet, but the signs are moving in that direction.

Signs the Market Is Shifting

Here are some key indicators that things are tilting toward buyers:

• Inventory is growing. Active listings recently topped 1 million nationwide—the highest in years.
• Homes are sitting longer. The median days on market is now 51 days, up six days year-over-year.
• More price cuts. Nearly 20% of homes had price reductions last month, the highest for May since 2016.
• Seller concessions are rising. Credits toward closing costs or rate buydowns are becoming more common.

These are all signs that buyers are gaining leverage, but it’s not a universal trend.

Local Trends Matter Most

What’s happening nationally might not match what’s going on in your city or neighborhood. For example, condos in many markets are sitting longer and seeing more price drops, while move-in-ready single-family homes in prime areas are still getting multiple offers.

That’s why local insight is everything. A “cooling” market in one zip code may still be red hot a few blocks away.

Here’s a look at where some Greater Boston neighborhoods currently stand:

• South End – Still a seller’s market
• Back Bay – More balanced between buyers and sellers
• Beacon Hill – Seller’s market
• South Boston – Seller’s market
• Fenway – Balanced market
• Brookline – Seller’s market

Advice for Buyers

If you’re a buyer, this is a great time to be strategic:

• Get pre-approved. You’ll be in a better position to act quickly when the right property hits the market.
• Pay attention to days on market. Older listings may offer more room for negotiation.
• Use contingencies wisely. In some areas, sellers are more open to offers with inspection or financing conditions.
• Know your market. Understanding local trends gives you more leverage and helps you spot a fair deal.

Tips for Sellers

Selling today takes a little more finesse:

• Price was brilliant from the start. Overpricing can lead to stale listings and price cuts down the road.
• Prepare your home. Clean, well-staged homes with great photos still sell faster.
• Be ready to negotiate. You might not get 10 offers over asking, but with the right strategy, you can still sell on strong terms.

The Bottom Line

We’re in a transitional market. It’s not entirely a buyer’s market, but it’s certainly more balanced than it’s been in years. Buyers have more breathing room, and sellers need to adjust expectations.

The best approach? Rely less on headlines and more on local data. Work with a knowledgeable agent who can help you navigate your specific market, because in real estate, local always wins. The seller needs to be aware that the property is taking longer to sell, and patience is required. The reason your home might not be priced is simply that it may be the right time. If you’re considering selling, please don’t hesitate to get in touch with me.