Regional Housing Trends: Sellers Dominate in Northeast, Buyers in Control in South

The US housing market is experiencing a split, with sellers having the upper hand in the Northeast and buyers maintaining power in the South. The Southeast and Mountain West regions offer better deals for buyers, with interest rate buy downs and negotiations for repairs. While there are signs of a shift towards buyers in hot markets like Boston and New York, the market remains competitive and expensive.

The US housing market is undergoing significant changes, with regional disparities emerging that are reshaping the dynamics between sellers and buyers. While the Northeast continues to favor sellers, the South and other regions are experiencing a buyer's market, offering better deals and more negotiating power.

According to the latest data from Redfin, the imbalance between sellers and buyers in the U.S. housing market has now passed the 500,000 mark [1]. This imbalance is particularly pronounced in the Northeast, where sellers have the upper hand. In June, there were over 2.1 million homes for sale in the U.S. market, up 14.7 percent from a year earlier, with sellers outnumbering buyers by 36 percent [1]. However, this trend is not uniform across the country.

In the South, buyers are maintaining power, with more properties for sale on the market than there are buyers. This is partly due to the rising interest rates and affordability issues. The Southeast and Mountain West regions offer better deals for buyers, with interest rate buy downs and negotiations for repairs being common. These regions have seen a surge in inventory, making it easier for buyers to find homes within their budget.

In contrast, the Northeast remains competitive and expensive. While there are signs of a shift towards buyers in hot markets like Boston and New York, the market remains challenging for first-time buyers. The median sale price of a typical U.S. home was $446,766 in June, up 1 percent from a year earlier but 44 percent from June 2020 [1].

The luxury housing market is also evolving, with Toll Brothers navigating a turbulent Q3 2025 with a mix of caution and strategic foresight [2]. The company's latest earnings report reflects broader economic headwinds, including high interest rates and shifting buyer priorities. Yet, Toll Brothers' ability to adapt to evolving demand dynamics and its focus on affluent buyers has insulated it from macroeconomic shocks. The company's strategic positioning in the luxury housing market and its ability to capitalize on second-home demand positions it well for long-term growth.

The regional disparities in the US housing market highlight the importance of understanding local market conditions when making investment decisions. While the Northeast may favor sellers, the South and other regions offer better deals for buyers. The luxury housing market is also evolving, with buyers prioritizing properties with wellness features and second-home demand surging in low-tax markets.

References:
[1] https://www.newsweek.com/number-americans-selling-their-home-hits-major-milestone-2108336
[2] https://www.ainvest.com/news/toll-brothers-q3-2025-earnings-navigating-challenges-cementing-resilience-shifting-luxury-housing-market-2508/