In the U.S., home sellers are losing their advantage as the housing market slows. Rising prices and low inventory once favored sellers, but that dynamic is changing. Fewer buyers can afford homes, and economic uncertainty pressures sellers to lower prices.
In many Southern and Western states, homeowners now offer buyers better deals. They may reduce prices, contribute to closing costs, or cover repairs after inspections. These concessions aim to attract more buyers in a competitive market.
High asking prices discourage potential buyers, while new construction provides alternatives. As a result, sellers must make their homes more appealing or risk longer listing periods. Even with slight national price increases, some metro areas report declines, signaling a shift in market power toward buyers.
The housing slump continues nationwide. Sales of previously owned homes remain below last year’s levels. Buyers struggle to afford median-priced homes, pricing many out of the market. With typical mortgage assumptions, most buyers cannot afford what sellers ask.
Since mortgage rates increased from historic lows, the market has slowed. Homes spend more time unsold, and active listings continue to rise. Inventory growth helps balance supply and demand, yet some regions like Texas and Florida see sharper increases due to new home construction.
Buyers now gain more leverage, especially in the South and West. Midwest and Northeast markets remain tight, with inventory far below pre-pandemic levels. This imbalance makes selling homes more challenging in those areas.
Some homeowners, like Doug McCormick in Colorado, struggle to receive offers even after lowering prices. Others, like Lindsay and John Olesberg, successfully sell but accept lower prices than they initially hoped. Buyers in areas with higher inventory often secure better deals.
Sellers also face tough decisions. Tammy Tullis in Florida removed her home from the market after low-ball offers, even after reducing the price. Homeowners weigh patience against financial needs while navigating slower markets.
Policymakers suggest lowering interest rates could help, but mortgage rates mainly follow long-term Treasury yields. Even if rates decline, buyers may gain power, reducing pressure on sellers to drop prices further. Economists predict mortgage rates will remain near the mid-6% range, keeping affordability tight.
The U.S. housing market now favors buyers in many regions. Sellers must adapt to changing conditions, whether by lowering prices, waiting for better offers, or offering incentives.
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