The US housing market is experiencing a significant shift as the balance of power shifts from sellers to buyers. In Los Angeles, where the median sale price hovers around $900,000 and sellers outnumber buyers by about 45%, buyers may have the upper hand for the first time in years.
According to Redfin’s analysis, there are nearly 500,000 more sellers than buyers in the US market. However, this trend is not reflected across all regions. In Los Angeles, which has seen a surge in sellers, the number of potential buyers lags behind.
As a result, home sales have remained sluggish, with sales of previously occupied homes sinking to their lowest level in nearly 30 years last year. The average mortgage rate has also climbed to a 23-year high, reaching 6.89% this week.
To adapt to the changing market, some sellers are opting to lower prices or offer sales incentives, such as agreeing to pay for closing costs. Nearly 1 in 5 home listings had their price reduced last month.
Experts warn that the growing imbalance between buyers and sellers may lead to a 1% decrease in US home prices by the end of the year. However, they emphasize the importance of education and financial preparedness for potential buyers.
“People need to understand the market is what it is, and there are many programs available,” says Jeannette Ruiz Mayes, a loan officer with First Citizens Bank. “I recommend talking to different lenders, realtors, and banks to find helpful programs.”
A local homeownership fair is scheduled on June 21, offering up to $218,000 in down payment assistance for those who need it most. By understanding the market and seeking guidance, potential buyers can navigate this changing landscape and achieve their dream of homeownership.
Source: https://abc7.com/post/homebuyers-may-have-upper-hand-housing-market-1st-time-years-according-redfin-report/16603996