In Nashville, Tennessee, a striking 75.5% of home sales in the last three months included seller concessions, highlighting a dramatic nationwide shift in housing market power. Sellers are under widespread pressure to offer incentives, directly benefiting buyers. Nationally, 46.2% of home sales in the three months ending May 31 involved seller concessions, up from 43.1% a year earlier, according to Scotsman Guide. Even more telling, 15.7% of sales included both price drops and concessions, an increase from 12.8% a year prior. Rising concessions and price drops suggest sellers are increasingly desperate to close deals.
Nationwide home sales are projected to increase by 14% in 2026, a forecast from the National Association of Realtors that clashes with the current market reality. The present environment shows a significant imbalance favoring buyers, leading to widespread price drops and concessions, as reported by LBM Journal. With 47% more sellers than buyers nationwide, The projected increase in transaction volume suggests a significant market correction is either underway or imminent, challenging any notion of a soft landing.
Therefore, despite an anticipated rise in transaction volume, the underlying market dynamics point to a sustained period of buyer advantage and continued pressure on home values for sellers.
Buyers Gain the Upper Hand as Sellers Multiply
Nationwide, there are currently 47% more home sellers than buyers, a substantial imbalance that empowers purchasers. The surplus creates a competitive environment where buyers dictate terms. The Nashville market exemplifies this, with 75.5% of home sales including seller concessions in the three months ending May, as reported by Scotsman Guide. The dynamic forces sellers to compete aggressively, often through incentives.
Prices Plunge as Market Adjusts
The national median listing price plunged 2.4% year over year in May to $429,500, according to Realtor. The national median listing price plunging 2.4% year over year confirms a broad downward trend in home valuations and a recalibration to a buyer-centric market reality. Companies anticipating a quick market rebound are likely to be caught flat-footed; the persistent increase in sales with both price drops and concessions signals sustained seller pressure, not a temporary blip.
The Cost of Waiting: Eroding Home Values for Sellers
The median price per square foot shed 2.5% from a year ago in May, according to realtor.com. The median price per square foot shedding 2.5% directly impacts seller equity, as the fundamental value of real estate erodes. Sellers who delay listing or resist price adjustments risk further reductions in their property's market value.
Navigating the New Normal: Longer Market Times
In May 2026, the median days on market nationwide was 49 days, a 3-day increase year-over-year, according to Ncwlife. The 3-day increase in median days on market signals a cooling period, granting buyers more time to consider options and negotiate. Sellers must adjust their expectations for how long properties will remain on the market.
Despite projected increases in transaction volume for 2026, the housing market appears poised for continued buyer advantage, driven by a surplus of sellers and persistent price adjustments.
