For years, sellers have held the upper hand in the housing market, but the tide is beginning to turn. While we’re not yet in a full-blown “buyer’s market” nationally, conditions are becoming significantly more favorable for buyers, and both realtors and homebuyers need to adapt to this evolving landscape.
Key Takeaways Homebuyers:
- The Shift is Real (But Not a Full Flip): Listings are staying on the market longer, price cuts are more common, and sellers are offering incentives that were rare just two years ago. However, it’s more of a “market in transition” than a complete reversal, with sellers still in control in many areas, albeit with less leverage.
- High Inventory: While national inventory is just shy of the six-month supply typically indicative of a buyer’s market, active listings topped 1 million in May for the first time since winter 2019.
- Slower Sales: Homes are spending a median of 51 days on the market, six days more than a year ago. This gives buyers more choices and time to decide.
- Price Drops & Concessions: Nearly 1 in 5 homes had a price reduction in May, the highest share for any May since at least 2016. Sellers are also increasingly offering financial perks, with some deals including $10,000 or more in concessions.
- Local Nuances are Crucial: National headlines don’t tell the whole story. Market conditions vary significantly by location, price range, and property type. For example, the condo market might offer more negotiating power, while single-family homes in prime locations still see strong interest. Realtors must understand local demand to guide pricing, marketing, and timing strategies. Homebuyers should compare local conditions to their market’s history.
Advice for Buyers:
- Get Pre-Approved: This shows sellers you’re serious and ready to move, even in a cooling market. My Loan Application = Get Pre-Approved
- Watch Days on Market: Homes that have lingered are prime for negotiation.
- Use Contingencies Strategically: Buyers are regaining the ability to use inspection and appraisal contingencies, and can be flexible with closing dates.
Advice for Sellers:
- Price Realistically: Gone are the days of aggressive overpricing and instant bidding wars. A well-priced home will attract more attention and better offers upfront.
- Prepare Your Home Well: Clean, move-in-ready homes with strong curb appeal, staging, and photography still make a difference.
- Don’t Panic: Adjusting to this new reality means staying nimble, not giving up value. Well-prepared and fairly priced homes are still selling.
In essence, the housing market is no longer solely a seller’s playground. While not a complete flip to a buyer’s market, the power is shifting, creating a more balanced environment where strategic actions by both buyers and sellers will determine success.
Click here to get Pre-Approved now
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About Me: I’m Sal Trapani, a trusted mortgage broker and the owner of MJ Mortgage LLC, based in Magnolia, Texas. I work with homebuyers across Texas, helping them navigate the loan process with clarity, strategy, and confidence.
Sal Trapani, Mortgage Broker/Owner, MJ Mortgage LLC, 281-608-2846 cell, sal@mjmortgagellc.com, www.mjmortgagellc.com NMLS 1055510 / NMLS 2381195