Buyers market vs sellers market – what market is better for agents in California?
As of March 2025, California’s real estate market presents a complex landscape, with conditions varying across the state. While some regions continue to experience seller-friendly environments, others are showing signs of shifting toward a buyer’s market. This nuanced scenario prompts a critical question for real estate professionals: Which market condition is more advantageous for agents? In this blog, we will explore the characteristics of both buyer’s and seller’s markets, assess the current trends in California, and discuss strategies for agents to thrive in any market environment.
Key Takeaways
- California’s Real Estate Market Varies by Region – While Los Angeles, San Diego, and San Francisco remain strong seller’s markets due to high demand and limited inventory, cities like Sacramento, Bakersfield, and Fresno are shifting towards a balanced or buyer’s market with increasing inventory and more affordability.
- Both Buyer’s and Seller’s Markets Offer Opportunities for Agents – In a buyer’s market, agents can focus on negotiation strategies and helping buyers find the best deals. In a seller’s market, agents can maximize profits for sellers by leveraging multiple offers and high demand.
- Market Trends Impact Real Estate Agents’ Success – California’s statewide median home price is expected to rise 4.6% to $909,400 in 2025, while mortgage rates remain high, influencing affordability. Agents must adjust their approach based on regional conditions.
- Adaptability is Key for Real Estate Agents – Thriving in any market requires staying informed on local trends, honing negotiation and marketing skills, diversifying clientele, and using technology to enhance business growth.
What Is a Buyer’s Market?
A buyer’s market occurs when the supply of available homes exceeds the demand from buyers. This surplus often leads to more competitive pricing, as sellers are motivated to attract the limited pool of buyers. Characteristics of a buyer’s market include the following:
- Increased Inventory: More homes are available for sale, giving buyers a wider selection.
- Longer Listing Durations: Properties remain on the market longer before receiving offers.
- Price Reductions: Sellers may lower asking prices or offer concessions to entice buyers.
Strategies for agents in a buyer’s market
- For Buyer’s Agents: Assist clients in navigating the abundant options, negotiating favorable terms, and securing properties at competitive prices.
- For Seller’s Agents: Provide guidance on pricing strategies, home staging, and marketing to make properties stand out in a crowded market.
What Is a Seller’s Market?
Conversely, a seller’s market arises when the demand for homes surpasses the available supply. This imbalance often leads to competitive bidding and rising home prices. Key characteristics include the following:
- Limited Inventory: Fewer homes are available, increasing competition among buyers.
- Shorter Time on Market: Properties sell quickly, often receiving multiple offers soon after listing.
- Higher Selling Prices: Sellers can command higher prices, sometimes exceeding the asking price due to bidding wars.
Strategies for agents in a seller’s market
- For Seller’s Agents: Leverage high demand to attract multiple offers, advise sellers on pricing strategies to maximize profits, and create urgency among buyers to close deals quickly.
- For Buyer’s Agents: Act swiftly, help buyers craft strong, competitive offers with minimal contingencies, educate them on market conditions, and find creative ways to stand out in bidding wars.
California’s Housing Market in 2025
- The statewide median home price is expected to increase by 4.6% to $909,400 in 2025, according to the California Association of REALTORS®.
- Home prices have risen by 6.3% year-over-year, indicating continued demand in key areas.
- Mortgage rates remain high, influencing affordability and market activity.
Seller’s markets in California
- Los Angeles – High demand and limited inventory continue to favor sellers in Los Angeles neighborhoods.
- San Diego – The median home price hit $880,000, reflecting a 4.8% increase from last year.
- San Francisco – Buyers are facing high down payment requirements, averaging 26% of home prices ($375,000).
Buyer’s markets or balanced markets in California
- Sacramento – Sacramento’s neighborhoods are more balanced, with increased inventory and a median home price of $450,000 (down 0.66% from last year).
- Bakersfield & Fresno – Affordability and rising inventory levels provide more options for buyers.
What Market Is Better for Real Estate Agents?
Both market conditions offer distinct advantages and challenges and can affect the average salary for agents.
Buyer’s market
Pros:
- Stronger Buyer Relationships: Agents can dedicate more time to each buyer, fostering trust and long-term relationships.
- Negotiation Opportunities: Agents can showcase their negotiation skills to secure favorable deals for buyers.
Cons:
- Longer Transaction Times: Extended property searches and negotiations can delay commissions.
- Increased Marketing Efforts: Agents may need to invest more in marketing to attract buyers to listings.
Seller’s market
Pros:
- Faster Sales: Quick transactions can lead to rapid commission payouts.
- Higher Property Values: Increased home prices can result in higher commission amounts.
Cons:
- Intense Competition: Agents representing buyers must act swiftly and strategically to secure properties.
- Potential for Fewer Buyers: High prices may deter some buyers, reducing the client pool.
How Agents Can Succeed in Any Market
Success in real estate hinges on adaptability and a deep understanding of local market nuances. Agents can thrive in any market condition by:
- Staying Informed: Regularly analyze local market data to anticipate trends and advise clients accurately.
- Enhancing Skills: Continuously improve negotiation, marketing, and communication skills to provide exceptional service.
- Building a Diverse Client Base: Work with buyers or sellers to maintain a steady stream of business regardless of market conditions.
- Leveraging Technology: Utilize digital marketing, virtual tours, and online communication tools to reach a broader audience and streamline transactions
Start Your Real Estate Career with Allied Schools
Are you considering getting your California real estate license but wondering if it’s worth it in this market? There’s never a bad time to start—success in real estate is about how you navigate the market, not just the market itself. Whether you’re working in a challenging market or thriving, having the proper training and knowledge sets top agents apart.
Allied Schools has been helping aspiring real estate professionals build successful careers for decades. We offer flexible online courses designed to fit your schedule, expert instructors who understand the California market, and comprehensive exam prep to help you get licensed quickly and confidently.
Get started today! Enroll in Allied Schools’ California Real Estate Pre-Licensing Course and take the first step toward your real estate career success.
