Shifts in the Housing Market Favor Buyers in Some Regions
As some areas in the United States adapt, the long-standing seller’s market for homebuyers is starting to shift. This change is particularly evident in various metropolitan regions.
On Tuesday, Realtor.com released its second quarter report, examining housing trends at both national and metropolitan levels. The report, which takes into account factors like inventory supply, market duration, price changes, and listing ratios, revealed significant insights.
Out of 100 metropolitan areas evaluated, 19 are now identified as buyer’s markets, with an additional nine likely to join them by the end of the third quarter.
The cities on the rise toward becoming buyer’s markets include Atlanta, Bakersfield (California), Birmingham (Alabama), Honolulu, Houston, Memphis, Riverside (California), San Antonio, and Syracuse (New York).
Potential Solutions for America’s Housing Shortage
This emerging trend contrasts interestingly with the current 19 metro areas in buyer’s markets, where most are located in the South, with Colorado Springs (Colorado) as the only outlier. The diversity among the new buyer markets is noteworthy.
Here’s a closer look at five of those emerging buyer markets highlighted in the Realtor.com report.
Atlanta, Georgia
According to LeAnn Weathers, a real estate agent in Atlanta, the market is changing: “Inventory is increasing; homes are staying on the market longer, and sellers are becoming more flexible with negotiations regarding price, closing costs, and mortgage terms.” She emphasizes that buyers now encounter fewer pressures and more options.
Local factors like the mounting housing supply and rising mortgage rates, which keep some buyers on the sidelines, are contributing to this more balanced market.
Riverside, California
In Riverside, Daniel Beal mentions that, within the Southern California condo market, “buyers have considerable influence.” Inventory for condos is climbing, leading to more choices for prospective buyers.
Beal adds that increased HOA fees due to regulations are prompting owners to sell, further enhancing options for buyers.
Syracuse, New York
In Syracuse, Ben Gray notes that buyers can now negotiate more on home inspections due to reduced competition. “Many are even looking beyond metropolitan limits, and it can take a while—45 to 50 minutes—for offers to be accepted,” he says.
Houston, Texas
Thao Nguyen observes that “buyers are finally having choices again” in Houston. With single-family home inventory reaching 5.2 months, buyers find themselves with more time to compare homes and negotiate without the constant stress of bidding wars.
San Antonio, Texas
In San Antonio, Romy Diess points out that new constructions offer significant bargaining leverage. “Builders are actively providing incentives like favorable interest rates and covering closing costs that many existing sellers can’t match,” she states. Increasingly longer market times and flexible pricing further support the buyer’s position in this region.
This environment indicates a persistent favoring of buyers in the upcoming months, unless there’s a significant drop in mortgage rates or an influx of new buyers into the market.
