The US housing market has seen a significant shift towards buyers, with nearly 500,000 more sellers than buyers according to a new Redfin report. This marks the highest number since the company started tracking data in 2013. The surplus of sellers is causing home prices to decrease and providing relief to struggling prospective homebuyers.
Low mortgage rates during the pandemic fueled a homebuying frenzy, driving up home prices nationwide. However, as rates surged in 2022, existing homeowners opted to hold onto their cheaper monthly payments, postponing any plans to sell. As a result, many properties remain idle on the market, and sellers are being forced to lower prices to attract cautious buyers.
According to Redfin experts, the imbalance between supply and demand is likely to bring down home prices further. The number of buyers has shrunk, while the number of sellers has increased significantly. This shift in power dynamics gives buyers more negotiating power, allowing them to secure homes for 5% less than the list price and $10,000 in seller concessions.
Real estate agents warn that sellers must make their homes stand out by doing cosmetic repairs and maintenance to attract potential buyers. As a result, Redfin now expects prices to decline by 1% by the end of 2025. This change reflects the shifting balance of power in the housing market, with buyers now having the upper hand.
Source: https://www.newsweek.com/number-americans-selling-home-record-high-2078495