According to new research from Zillow, housing inventory has reached its highest level in more than five years. A significant slowdown in buyer demand has more homes for sale now than at any time since 2019. This shift is creating a more balanced market , giving buyers newfound leverage that has been missing for years.
While sellers have held the advantage for the most of the last five years , a combination of more sellers entering the market and a surge in new construction has helped level the playing field. However, affordability continues to be a major challenge for many , particularly first-time homebuyers.
Here’s a look at the key takeaways for buyers and realtors in today’s evolving market.
Key Insights for Homebuyers
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More Choices Available: In June, 1.36 million homes were listed for sale , the highest number since November 2019. This marks a 17.2% increase from just a year ago.
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Increased Bargaining Power: With less competition, buyers have more negotiating power. The market is now considered neutral or in buyers’ favor in 28 of the 50 largest metro areas in the U.S..
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More Time to Decide: Buyers are not feeling as rushed. On average, a listing that sells does so in 19 days , which is only one day faster than before the pandemic.
What This Means for Sellers and Realtors
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Pricing is Key: A record-high 26.6% of home listings had a price drop in June. This is the highest share for any June in Zillow records dating back to 2018.
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Price Reductions Vary by Region: Price cuts are most common in the Sun Belt and Mountain West. Metro areas with the most frequent price cuts include Denver (38%), Raleigh (36%), and Dallas (36%).
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Standout Marketing is Crucial: With more homes on the market, sellers need to price their homes realistically and set their listing apart from the crowd to attract the widest possible audience of buyers.
A Look at the National Numbers
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Inventory: There were 1.36 million active listings in June. Inventory is still about 21% below the average for June before the pandemic.
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Price Cuts: The share of listings with a price cut hit 26.6% nationally.
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Market Temperature: The U.S. housing market is now considered “Neutral,” where neither buyers nor sellers have the upper hand.
While the market is shifting, navigating it requires expertise. High prices and borrowing costs remain significant hurdles. As one Zillow economist noted, this newfound balance primarily benefits buyers who are more financially well-off.
In a complex market, having a trusted expert on your side is more important than ever. For guidance on securing the right mortgage for your situation, please reach out.
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Sal Trapani – Mortgage Banker and Owner MJ Mortgage LLC, Cell: 281-608-2846 Email: sal@mjmortgagellc.com Website: www.mjmortgagellc.com 33130 Magnolia Cir, Magnolia, TX 77354 NMLS 1055510, NMLS 2381195
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