Strongest Buyer’s Market Since 2013 Records Begin

In October, the U.S. housing market experienced a significant shift, marking the strongest buyer’s market since records began in 2013. Home sellers outnumbered buyers by 36.8%, or 528,769 more sellers than buyers. This imbalance provided buyers with greater negotiating leverage as they faced fewer competition.

Homebuyer Decline Amid Economic Uncertainty

The number of homebuyers fell by 1.7%, reaching approximately 1.44 million. This figure represents the lowest level of homebuyers recorded, aside from April 2020, during the onset of the COVID-19 pandemic. Conversely, the total number of sellers decreased by 0.5% to around 1.97 million, the lowest level since February 2020.

High housing costs and economic uncertainty contributed to this decline. Many potential buyers have been priced out of the market, which has dampened demand. Sellers often find themselves in a challenging position, with some deciding to delist their properties after prolonged periods without offers.

Regional Market Variations

Texas and Florida are currently experiencing the strongest buyer’s markets. Notably, sellers in San Antonio outnumbered buyers by an astounding 117%. Other notable areas include Austin, TX (115%), Miami, FL (108%), and Nashville, TN (105%).

• City Market Imbalance:
• San Antonio, TX – 117% more sellers than buyers
• Austin, TX – 115%
• Miami, FL – 108%
• Nashville, TN – 105%

Seller’s Markets in the Northeast

In contrast, the Tri-State area is witnessing stronger seller’s markets, with Nassau County, NY, showing the most significant imbalance. Here, sellers are outnumbered by buyers by 37.4%, suggesting higher demand in that region.

• Strongest Seller’s Markets:
• Nassau County, NY – 37.4% fewer sellers than buyers
• Newark, NJ – 34.9%
• Montgomery County, PA – 34%

Market Balance and Future Trends

Interestingly, San Francisco has transitioned from a buyer’s market to a balanced market. The city now has approximately the same number of buyers and sellers, reflecting a more stable housing environment.

The current buyer’s market signifies ongoing challenges. Despite more housing options, economic factors influence many buyers’ abilities to commit. This scenario highlights a disconnect between seller expectations and buyer capabilities, as rising home prices and mortgage rates discourage new entries into the market.

Conclusion

The U.S. housing market’s distinctive buyer’s market trend provides opportunities for those who can afford to buy. However, it also emphasizes the financial barriers that many face in this shifting landscape.