A stark regional divide is emerging in the US housing market, where buyers hold more power to demand price cuts in some areas but face intense competition in others. The national supply of homes for sale remains below pre-pandemic levels, with existing-home inventories 16% lower than five years ago, according to the National Association of Realtors. However, as more homeowners decide to sell, supply is increasing and prices are being renegotiated.
The shift is driven by regional differences in new home construction and affordability. In states like Florida and Texas, where there’s an oversupply of newly built homes, prices look overvalued. In contrast, areas like the Northeast and Midwest continue to face a shortage of homes for sale. This divergence has given buyers more leverage to negotiate lower prices, particularly in regions with abundant inventory.
As more homeowners take advantage of ultralow mortgage rates to sell their properties, the lock-in effect – which kept them on the market longer due to cheap borrowing costs – is slowly dissipating. While some areas remain competitive, others are becoming more buyer-friendly, offering more room for price reductions and negotiation.
Source: https://www.wsj.com/economy/housing/are-homes-values-about-to-fall-it-depends-on-the-location-f61e8ea5