Over the past year, the gap between the number of active sellers and active buyers has widened to its largest margin since the wake of the Great Recession. According to Redfin, as of April 2025, sellers outnumbered buyers nearly 4 to 3, with a full 500,000 more selling their homes than looking to buy one.
This does not mean that another real estate-driven financial crisis is approaching (mostly due to stronger borrowers with low-interest, fixed loans, unlike the subprime teaser rates of pre-2008). But it does clearly indicate that the real estate market is softening. And this comes at an inopportune time, as a silent crisis has been eroding the cash flow of real estate investors for several years now: the operating cost crisis.
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