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Daryl Fairweather reports that the U.S. housing market has shifted into a buyer's market as sellers significantly outnumber buyers.

The U.S. housing market has transitioned into a buyer's market, with sellers outnumbering buyers by 51% as of July. According to data from Redfin, the number of active homebuyers has plunged to approximately 967,000, the lowest level recorded since 2013. This decline is primarily driven by high mortgage rates and limited affordability, which have kept many prospective purchasers on the sidelines. Lawrence Yun, chief economist at the National Association of Realtors, noted that mortgage rates at 6% and 6.7% have a significant impact on economic capacity. While inventory is increasing, the high costs of home ownership continue to offer buyers more negotiating power. Asad Khan, a senior economist at Redfin, stated that while buyers are dropping out of the market faster than sellers, those with sufficient financial resources can still find opportunities to negotiate with motivated sellers before the fall rush. Luxury homes continue to see strong interest, with median prices rising faster than non-luxury homes. Meanwhile, the 21st Century Road to Housing Act, a bipartisan federal measure, aims to address supply shortages and high prices by restricting large institutional investors from acquiring single-family homes.

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