Are We Moving Towards a Balanced Housing Market? What It Means for Buyers and Sellers
The past few years have seen a strong seller's market, but recent shifts hint that we might be heading toward a more balanced housing market. With increasing inventory and homes spending a bit more time on the market, here's what you need to know about these changes and how they could impact your next move.
What Is a Balanced Market?
A balanced market occurs when there is roughly a five-to-seven-month supply of homes for sale, creating an even playing field for both buyers and sellers. In a balanced market, price stability becomes the norm, and there’s a wider selection of homes. This is quite a change from the seller-dominated market of recent years. But are we truly heading towards this balance?
Currently, national housing inventory has risen from a three-month supply to a four-month supply, getting closer to a balanced level. However, we’re not there yet, and it’s still a seller’s market, just less intense than before. Importantly, this increase in inventory doesn’t signal an oversupply that would cause a market crash; it’s simply a step toward more options and less urgency for buyers.
What the Inventory Growth Means for Buyers and Sellers
While we’re not fully in balanced market territory, these shifts still affect both buyers and sellers:
Homes Are Staying on the Market Longer
More homes available means properties aren’t selling as fast. For buyers, this can provide more time to explore options and make decisions. Sellers, on the other hand, may need to be mindful of competitive pricing to attract buyers.Sellers Are Receiving Fewer Offers
As competition cools, sellers may face fewer offers. This could mean being more flexible with negotiations, while buyers might encounter less bidding pressure, leading to potentially better terms.Inspections Are Back on the Table
With more inventory, buyers now have greater leverage to request inspections and appraisals, reducing the need to waive these conditions to stay competitive. Sellers should be prepared to address potential repair requests to keep deals moving smoothly.
How a Real Estate Agent Can Help You Navigate Local Market Shifts
While these trends reflect the national picture, real estate markets vary widely by region. Your local real estate agent can offer insights into how your specific market is shifting and provide guidance on how to approach buying or selling in these conditions. Whether you're selling and want to know the best price strategy or buying and looking for negotiating power, an agent’s expertise is crucial.
Bottom Line
The housing market is slowly shifting toward balance, which could mean more options and a steadier pace for buyers, while sellers may need to adapt to less competitive conditions. Staying informed and working with a real estate agent can help you make the best decisions in this changing landscape. If you’re curious about how these trends impact your local market, feel free to reach out for expert advice.
