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.
Hart Real Estate Solutions