Agents rethink pricing strategies as buyers gain leverage 

There is growing evidence that the housing market is slowly but surely shifting away from sellers and beginning to favor buyers, according to a pair of new real estate agent surveys.

The latest agent survey from Real Brokerage reveals that transaction activity is slowing and market leverage is moving decisively toward buyers. A new monthly agent survey from John Burns Research and Consulting (JBREC) and Keeping Current Matters (KCM) also offers new commentary and analysis that illustrates the shifting real estate market. 

Agents see buyers gaining leverage: The results of Real's survey, which includes insights from over 260 agents across the U.S. and Canada, revealed that 43% of agents surveyed said their local market favored buyers in May. Another 29% of agent respondents reported balanced market conditions, while only 28% said sellers had the advantage.

Agents said rising inventory levels, homes sitting on the market for longer periods and increased room for price negotiations were primary drivers for the shift. 

"Based on our survey, the spring market is clearly tilting toward buyers, with more inventory and greater pricing flexibility emerging across many regions," Real Chairman and CEO Tamir Poleg said in the report.

"But even with this shift in leverage, affordability remains a key hurdle," Poleg added. "Until mortgage rates ease or wage growth catches up, we expect this dynamic of increased supply yet more selective demand to define the market in the near term."

JBREC/KCM's June U.S. agent survey came to a similar conclusion, with 40% of agent respondents reporting that buyers outnumbered sellers in May, a steep decline from 63% during the same period last year. The Northeast and Midwest — which have seen consistent demand and home price growth for at least the last year — are the markets where sellers still have leverage. Other regions — particularly in Florida, Texas, the Southwest and parts of California — have a more balanced or "supply-heavy" market, the report noted. 

Affordability remains the top issue for buyers: In Real's survey, agents also highlighted the persistent issue of affordability in individual markets, with 50% of agent respondents identifying affordability as the top challenge for buyers, a trend consistent with prior months.

Meanwhile, concerns about the job market and other economic conditions are growing. The Real survey found that 28% of agents cited economic uncertainty as the primary obstacle to homeownership — the highest level recorded in the survey's history.

Agent commentary included in the JBREC/KCM survey backs up this theme. One agent respondent in Alabama noted that "interest rates are higher than buyers can afford," while an agent in New Jersey noted, "Home prices, taxes, and insurance" have made it "nearly impossible for the average person to own a home" in their market.

Another agent in St. Louis noted that it's been difficult to help low-end buyers find a home "in their price range that doesn't need work," while in Ventura, California, the rental market is booming because people simply can't afford to buy at this time. 

Pricing trends point to shift in power dynamics: There are some top-level metrics that illustrate the shift toward a buyers market, according to the JBREC/KCM survey. For instance, 33% of agent respondents reported mostly decreasing prices month-over-month — up from 13% a year ago — which could be another sign of softening seller power.

The survey also indicates that fewer homes are seeing bidding wars. Only 25% of transactions nationally had multiple offers in May, down from 35% in May 2024.

Agents remain positive, but may need to reassess client strategy: While the market appears to be leaning toward buyers, overall agent sentiment remained positive but tempered. Real's Agent Optimism Index dipped from 65.8 in April to 57 in May. While still above 50, which indicates net optimism, the drop suggests agents are taking a more cautious stance as the market recalibrates. 

As the market pivots, so too will agents. The shift toward a buyer-friendly market may require agents and sellers to reconsider pricing strategies, focus more on buyer outreach and offer enhanced support to navigate affordability barriers.

With bidding wars long gone in some markets, agents and sellers have to accept the new reality that their home may take longer to sell.

"My listings are just sitting on the market after many price reductions. I'm seeing many properties that aren't selling going off, then back on the market several times," an agent in Santa Cruz, California, told JBREC/KCM.

In Phoenix, it is "becoming widespread knowledge that the housing market is more favorable for buyers than it has been for many years," another agent said.