Three Texas Metros Among Nation’s Top 5 Markets

HOUSTON – (By Dale King, Realty News Report) — Homebuyers can exert considerable clout in the American housing market – particularly when sellers seriously outnumber them, giving potential purchasers a “buyer’s market” advantage across the negotiating table.

During May 2026, 35 of the 50 most populous U.S. metros were ranked as buyer’s markets.

A survey by real estate brokerage Redfin determined there were about 46.9% more home sellers than buyers in May, up from 46.4% a month earlier, but down from a peak of 49.5% in December 2025.

Actually, Nashville, Miami and Austin – homebuying hotspots during the pandemic — were the biggest drivers in the spring real estate market this year with the largest surplus of sellers compared to buyers.

Texas Leads Nation in New Home Construction

While Austin was one of the strongest performers, two other popular Lone Star destinations — Houston and San Antonio – rounded out the top five metros in the home marketplace. Texas also leads the nation in new home construction, which increases the housing supply in and around the state’s largest cities.

When sellers outnumber buyers, home purchasers typically have more bargaining possibilities. That’s why a market with more sellers than buyers is considered a buyer’s market.

Redfin defines a market with over 10% more sellers than buyers as a buyer’s market and a market with over 10% fewer sellers than buyers as a seller’s market. If the gap is less than 10%, the market is considered balanced.

According to the Houston Association of Realtors, the Houston area had 37,619 homes listed for sale in May, a 2.4% increase over May of 2025.

Houston had a 5.4 month’s supply of homes for sale in May, HAR reported. A 6-month inventory is considered a balanced market.

“While the gap between homebuyers and sellers has narrowed slightly since the end of last year, house hunters still have far more negotiating power and less pressure to make rushed decisions,” said Redfin Senior Economist Asad Khan.

“With lots of inventory to choose from, buyers in most of the country can be selective and ask for concessions while sellers still need to price competitively to make their properties stand out. Still, buyers should remember that it’s not quite as strong a buyer’s market as it once was. The most desirable homes in popular areas are still attracting multiple offers.”

Nashville, Florida, Texas Show Buyer Clout

May’s strongest buyer’s market was Nashville, which had an estimated 130% more sellers than buyers. Next came Miami (122% more sellers), Austin (116% more sellers), Houston (111%) and San Antonio (108%).

“Listings are skyrocketing and buyers are being picky,” said Aaron Glicken, a Redfin Premier agent in Nashville. “Sellers are still struggling to wrap their minds around lower prices, which is one reason so many listings go stale. Many sellers won’t negotiate or lower their prices. At the same time, buyers are being very particular. They’re contending with high mortgage rates, more choices and often only want to close a deal if sellers will negotiate.”

The Sun Belt’s residential market skyrocketed during the pandemic — and housing construction flourished. But since COVID subsided, high mortgage and insurance rates, HOA fee hikes and climate risks limited buyer demand and left sellers with more competition.

New home construction continues to play a big role in whether buyers or sellers have the upper hand because it increases housing supply. The South and West — especially Florida and Texas — have built far more homes than the Northeast and Midwest, helping to tip many metros in those regions toward buyers.

More Sellers in the Market, But Buying Flat

Nationwide, there were an estimated 1,483,839 home sellers in the market in May, the highest level since 2020 and up 0.4% month over month. Meanwhile, there were an estimated 1,010,386 buyers in the market, essentially unchanged (up 0.1%) from the month before.

The fact that the number of sellers grew from April to May while the number of buyers was essentially unchanged explains why seller surplus increased. New listings hit the market at a slightly faster rate than buyers jumped into the real estate fray, increasing competition among sellers a bit from the month before.

Homebuying demand flattened in May largely because mortgage rates hit their highest level in nearly a year, straining affordability. Widespread economic and global uncertainty has also discouraged house hunters, counting the Iran war, rising gasoline prices and inflation-related financial jitters.

More sellers entered the market last month partly because they noticed the uptick in homebuying demand in April, the result of a strong job market and temporarily lower mortgage rates.

House Hunters’ Dealing Power Grew

Most of the buyer’s markets strengthened in May. The surplus of home sellers over buyers grew month over month in 23 of the 35 buyer’s markets. The surplus increased most in Nashville, which was also the nation’s strongest buyer’s market in May.

There were 130% more sellers than buyers in Nashville, up from roughly 114% the month before. The next-biggest monthly increase was in St. Louis, which went from being a balanced market in April to a buyer’s market in May, with 15% more sellers than buyers.

Next are the two Texas metros: In both Houston and Austin, there were more than twice as many sellers as buyers in May, and both metros saw the gap increase nearly 10 percentage points month over month.

In some buyer’s markets, house hunters lost a nudge of negotiating power. In 12 of the 35, the surplus of sellers over buyers fell from April to May, making buyer’s marketing wallop a shade less effective.

The biggest decline was in Pittsburgh, where there were 53% more sellers than buyers, down from about 63% the month before. Then Miami where there were 122% more sellers than buyers in May, down from a 131% surplus in April. The next-biggest declines were in West Palm Beach, Portland, Ore. and Fort Worth, Texas.

Seven Seller’s Markets

Seven of the major U.S. metro areas Redfin analyzed were seller’s markets in May, tied with April for the highest number in nine months.

Nassau County, N.Y., was the strongest seller’s market with 38% fewer sellers than buyers. The other six seller’s markets were Milwaukee (-29%), Montgomery County, Pa. (-25%), Newark (-21%), New Brunswick, N.J. (-20%), Providence, R.I. (-19%) and San Francisco (-14%).

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