A local investor told me on Friday that he has a beach apartment for rent that is already priced 10% below the previous rent – and there has been no interest. Home sellers should be cautious about thinking they “can just rent it out if I have to”.

A power struggle is emerging between buyers and sellers — and it’s not yet clear who will gain the upper hand. Sellers continue to demand premium home prices, according to Realtor.com’s June housing trends report. Many sellers have plenty of equity and low locked-in mortgage rates, both factors that enable them to be patient.

With inventory continuing to grow, buyers are getting the kind of leverage they haven’t seen in years, and are able to shop around for the best deal. Buyers seem to be waiting for home prices or mortgage rates to drop, as evidenced by the sluggish home sales numbers this spring.

Sellers who are unable to get their preferred home prices can become “accidental landlords,” according to a recent report from ATTOM. Based on research from Parcl Labs, the report found that areas where inventory has climbed the most tended to have higher shares of failed listings that ultimately turned into rentals.

“Accidental landlord rates matter because they represent more rental supply entering already-competitive markets,” Parcl Labs Co-founder Jason Lewris wrote in the report.

So will real estate tip in buyers’ favor? In many local markets where inventory has jumped, it already has. At the national level, it may take time as sellers’ advantages remain, according to Danielle Hale, chief economist at Realtor.com.

Rise in delistings, price cuts: This balance between buyers and sellers is something the market has not seen since the housing supply reached six months nearly a decade ago.

“We’re seeing hesitation on both sides of the market,” said Anthony Djon, founder of Anthony Djon Luxury Real Estate. “Inventory is rising, giving buyers more options and making them more price-sensitive and selective. At the same time, some sellers — especially those not getting immediate traction — are stepping back. The market has clearly shifted from the urgency and intensity of recent years, and today’s homeowners are having to recalibrate their expectations.”

That hesitancy appeared in Realtor.com’s latest trends data. In June, inventory was up 28.9% YoY, with active listings above 1 million nationally. Meanwhile, the rate at which homeowners pulled their listings jumped 47% year-over-year in May.

https://www.realestatenews.com/2025/07/08/is-the-surge-in-delistings-good-news-for-buyers