The gap between the number of home sellers and buyers in the U.S. housing market hit a record in February, solidifying a national buyer’s market as elevated housing costs and economic uncertainty continue to sideline homebuyers.

In February, the number of active home sellers outpaced buyers by 46.3%, translating to a record high surplus of 629,808 homes, according to recent Redfin research. This represents the largest imbalance since 2013 and marks a significant jump from the 29.8% gap recorded a year earlier.

The widening divide comes as buyer demand dropped 2.4% month over month to an estimated 1.36 million, according to Redfin’s analysis, leading the report authors to conclude that the number of homebuyers has fallen to historic lows. The number of active sellers also saw a slight decline, falling 0.4% to 1.99 million.

The shifting dynamics have transferred negotiating power heavily toward purchasers. Redfin classifies any market where sellers outnumber buyers by more than 10% as a buyer’s market, a threshold the overall U.S. market has maintained since May 2024, according to the analysis.

“We’re seeing a lot more inventory on the market compared to the past two years because the mortgage rate lock-in effect is easing and there’s a lot of new construction,” commented Redfin Premier real estate agent Justin Gomez in the report.

Based in Omaha, Neb., Gomez noted that this shift has improved affordability, particularly for younger demographics, a contrast from two years ago when multiple offers and bidding wars were the norm.

Stubbornly high home prices, elevated mortgage rates, recent layoffs and broader economic uncertainty are primarily responsible for the ongoing buyer retreat, according to Redfin. This hesitancy has a compounding effect: As buyers pull back, some sellers — including a significant portion of sellers seeking to become buyers themselves — are choosing to delist their properties or hold off on entering the market entirely after observing nearby homes sell below asking price.

However, these trends are highly regionalized. Sun Belt cities, flush with pandemic-era new construction, offer the strongest advantages for buyers. Miami led the nation in February with an estimated 163% more sellers than buyers, followed by Nashville (120%), Austin, Texas (112%), West Palm Beach, Fla. (110%) and San Antonio (104%).

Florida’s market is facing additional localized pressures, including intensifying natural disasters, soaring insurance premiums and rising condo homeowners association fees, which have prompted an exodus of some homeowners and boosted local supply.

In stark contrast to the Sun Belt, the Northeast and Midwest maintain specific seller’s markets. Based on Redfin’s data, Newark, N.J., was the most seller-friendly market, with 31.1% fewer sellers than buyers in February.

The leverage held by buyers in well-supplied regions is reflected in local pricing trends. Home prices rose an average of 2.2% year over year across the five strongest seller’s markets in February, compared to a meager 0.3% average increase across the 37 Redfin-identified buyer’s markets.