An article summarized by PR Newswire:
The U.S. housing market reached a record buyer-friendly imbalance in September, with 62.6% more home sellers than buyers, according to a new Redfin report. This marked the fourth consecutive month of record highs, as the gap widened from 56.9% in August. There were approximately 1.51 million sellers compared with just 929,000 buyers, the lowest number of potential buyers in records dating back to 2013. As a result, buyers have more options and greater negotiating power, although high home prices, mortgage rates and economic uncertainty continue to make purchasing a home difficult for many Americans.
The shift is especially pronounced across the Sun Belt, where substantial homebuilding and cooling demand have increased housing inventory. More than 80% of the 50 metropolitan areas analyzed by Redfin were buyer’s markets, the highest share on record. Miami led the country with 158.9% more sellers than buyers, followed by major markets including Tampa, Nashville and Houston. Rising housing costs, mortgage rates, insurance premiums and homeowners association fees have further discouraged buyers, while some homeowners continue listing properties after waiting years for more favorable market conditions.
In contrast, just five metropolitan areas remained seller’s markets: Nassau County, New York; Montgomery County, Pennsylvania; Newark, New Jersey; Milwaukee; and San Francisco. Limited housing construction and strong demand have kept competition elevated in these locations, with home prices rising an average of 6.4% year over year across the five markets, compared with a 1% increase across buyer’s markets in August. Overall, the data suggest that buyers are gaining leverage, but affordability remains the biggest obstacle, meaning favorable market conditions may not translate into more home purchases until housing costs become more manageable.
