Trending Back to Buyer’s Market?

By
Real Estate Agent with Hart Real Estate Solutions RRE-BRO-LIC-24638

Although the US housing market is certainly still a seller’s market, their advantage might be slipping. Right now, low home inventory allows many sellers in markets across the US to negotiate much harder, knowing they have another potential buyer waiting in the wings. However, as more homes continue to come on the market and stay on the market for longer, buyers will see their bargaining power increase.

Normally towards August, both inventory and demand reach their peak. Then, once the school year starts, near-term buyers disappear as they look for solidity and routine in their daily lives. Most people don’t want to move in the midst of the school year, particularly if they have children.

However, this August, home inventory has continued to increase. Home inventory increased by 3% month-over-month. Having more homes on the market is great news for the housing market overall, but will also help balance the market, evening the footing between buyer and seller.

Homes also stayed on the market for 75 days on average. With more homes taking up more time on the market, buyers may have the ability to negotiate during a purchase more so than in previous years—and they might even be able to walk away to an equally appealing fit. Most sellers in the US, with some metro areas removed, don’t have a line of back up buyers in tow, making it harder for them to walk away from deals that don’t provide everything they’ve requested.

 

Source: http://realtormag.realtor.org/daily-news/2015/08/31/advantage-shifting-slightly-home-buyers

 

Comments (12)

Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

Interesting point on the market shifting to a buyer market. I will have to look at our inventory and days on market. 

Sep 24, 2015 08:39 AM
Jon Quist
REALTY EXECUTIVES ARIZONA TERRITORY - Tucson, AZ
Tucson's BUYERS ONLY Realtor since 1996

I hope you are correct. We need more inventory ASAP.

Sep 24, 2015 08:52 AM
Christi Farrington
Dagny's Real Estate - Wilton, CT
~ Your representative in Fairfield County, CT

I was noticing this, also. However, a well-priced home disappears within a week or two and sometimes days. Let's watch .... 

Sep 24, 2015 09:22 AM
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

Something is happening in my midwest area. Inventory is down but prices are also down. Days on market of around 49-65 doesn't suggest homes flying off the market like you would anticipate either.

Not exactly a sellers market & I see way too many price reductions of 10K chops which should never happen if the market is as robust as they say.

Sep 24, 2015 09:28 AM
Dorte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Tim,

Have not analyzed this, but have a feeling you are right.

Sep 24, 2015 11:45 AM
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

It depends doesn't it, on the area and the L3 factor? I don't see an increase in RE inventory anytime soon

Sep 24, 2015 02:34 PM
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

We are still seeing tight inventory here on Kauai. Right now it seems to be a Seller's market here.

Sep 24, 2015 04:34 PM
Jim Crawford
Maximum One Executive REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

Tim Hart Thank you for taking the time to share this local real estate market information.  This is great stuff for buyers and sellers alike!

Sep 24, 2015 10:54 PM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

In the areas I usually work in Kansas City...if the house is updated and priced well, it sells very fast. If overpriced and hasn't been maintained...it sits there.  There has been some agressive pricing lately too because of the low inventory.

Sep 25, 2015 07:16 AM
Hart Real Estate Solutions
Hart Real Estate Solutions - Bozeman, MT
Broker/Owner

Thanks everyone for your comments!

Sep 25, 2015 07:52 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Most Dallas areas have less than 2 months inventory.  Two additional areas have 4 months of inventory.  I am noting some price reductions. In my opinion, many reductions are due to unrealistic pricing.  Every neighborhood has its own unique market.

Sep 25, 2015 07:57 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

We still have a Sellers market.  Maybe a little easier than a couple of years ago, but still a Sellers market.

Sep 29, 2015 06:33 AM