Buyer’s Market—With Strings Attached
Redfin reported last week that sellers are grappling with the strongest buyer’s market since the real estate brokerage firm began compiling records back in 2013. Sellers now outnumber buyers by 37%.
More sellers than buyers give those searching for a home an advantage, as they usually have greater room to negotiate prices and terms.
That advantage is not only present in existing homes for sale, but also in new homes. The National Association of Home Builders said last week that “41% of builders reported cutting prices in November, a record high in the post-Covid period.”
But the good news for buyers comes with a catch.
Prices remain high around the country, the inventory of homes to choose from in most locales remains somewhat limited, and interest rates are nowhere near what they were a few years ago.
With prices still elevated and 30-year fixed mortgage rates holding above 6%, many buyers remain constrained. However, a growing supply of homes relative to demand is gradually exerting downward pressure on prices.