Buyers Have the Power: What Today’s Market Shift Means for You
After years of tight supply and bidding wars, a surprising market shift has hit the housing market. According to a recent article in The Wall Street Journal, there are now nearly 500,000 more sellers than buyers across the United States. That is the largest gap ever recorded since 2013. The real estate market has changed.
Why the Sudden Shift?
For a long time, we’ve talked about low inventory as the primary issue holding back the market. But that’s changing. More homeowners are listing their properties, whether due to major life changes, rising ownership costs, or fears that prices may start to drop. Still, that rise in listings hasn’t sparked a buyer frenzy.
In fact, April marked the slowest home sales for that month since 2009. Despite more homes being available, many buyers are holding off due to high mortgage rates and lingering economic uncertainty.
Buyers Want Deals, Not Bidding Wars
The power dynamic has flipped. Instead of strategizing over how to win a bidding war, today’s buyers are showing up to appointments asking how much of a discount they can get. They’re looking for concessions like closing cost coverage and price reductions.
Sellers, particularly those in oversupplied regions like the Southeast and Southwest, are starting to meet those demands. In the Miami metro area, there were nearly three times more sellers than buyers in April. That imbalance is driving prices down in many Sunbelt markets where the market has changed dramatically.
Should Sellers Be Worried?
Not necessarily. While the market has changed, the national home prices rose 1.4% in May, growth is slowing. Some markets are still strong, especially in the Northeast and Midwest, where buyers are more active than sellers. But if you’re in a region with high inventory, it’s a good time to speak with your real estate agent about a pricing strategy or possible incentives that can help your home stand out.
Also, be prepared to wait a bit longer for offers, and recognize that the days of getting 10 offers in a weekend are mostly behind us, at least for now.
Long-Term Outlook
The housing market is always cyclical. While this new supply trend may offer some relief for buyers, affordability is still an issue due to high interest rates and steep home prices. Until there’s a shift in those variables, we are likely to see this kind of uneven pace continue.
Need Help Navigating This Market?
Whether you’re buying or selling, the rules are changing fast. If you’re unsure how this market shift affects you, I can help connect you with a trusted real estate professional in your area. Let’s make sure your next move is a smart one no matter which side of the deal you’re on.
