Trending Back to Buyer’s Market?

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

 

 

Hart Real Estate Solutions

www.hart.realtor

406.585.0000

Hart Real Estate Solutions Bozeman Montana


  

 

Comment balloon 12 commentsHart Real Estate Solutions • September 24 2015 11:30AM

Comments

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

Posted by Frank Rubi, FrankRubiRealEstate.com (Frank Rubi Real Estate, LLC) about 3 years ago

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

Posted by Jon Quist, Tucson's BUYERS ONLY Realtor since 1996 (REALTY EXECUTIVES TUCSON ELITE) about 3 years ago

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

Posted by Christi Farrington, ~ Your representative in Fairfield County, CT (William Raveis Real Estate - Norwalk, CT) about 3 years ago

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.

Posted by Lyn Sims, Schaumburg IL Real Estate (RE/MAX Suburban) about 3 years ago

Dear Tim,

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

Posted by Dörte Engel, ABC - Annapolis, Bowie, Crofton & rest of Maryland (RE/MAX Leading Edge) about 3 years ago

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

Posted by Kimo Jarrett, Pro Lifestyle Solutions (WikiWiki Realty) about 3 years ago

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

Posted by Kathleen Luiten, Kauai Luxury Ocean Home Sales (Resort and Second-Home Specialist) about 3 years ago

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!

Posted by Jim Crawford, Jim Crawford Atlanta Best Listing Agents & REALTOR (Crye-Leike REALTORS®) about 3 years ago

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.

Posted by Mary Hutchison, SRES, ABR, Experience Agent in Kansas City Metro area (Better Homes and Gardens Real Estate-Kansas City Homes) about 3 years ago

Thanks everyone for your comments!

Posted by Hart Real Estate Solutions, Broker/Owner (Hart Real Estate Solutions) about 3 years ago

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.

Posted by Sharon Parisi, Dallas Homes (United Real Estate Dallas ) about 3 years ago

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

Posted by Gene Riemenschneider, Turning Houses into Homes (Home Point Real Estate) about 3 years ago

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