The buyer’s market has now reached record levels.
The number of homesellers exceeded homebuyers by a record 36.8 percent in October, which is the largest divide between the two groups since at least 2013, Redfin reported on Wednesday.
A buyer’s market is considered one in which there are over 10 percent more sellers than buyers. There have been over 30 percent more sellers than buyers in the national market since April of this year. The last time there was a stronger buyer’s market than this one was likely immediately after the 2008 financial crisis, Redfin said.
The proportion of buyers in the market actually dropped 1.7 percent from September to October to roughly 1.44 million, the lowest level of buyers in the market with the exception of April 2020, the real estate company reported.
Buyers, particularly first-time ones, have generally been less motivated because of higher mortgage rates and home prices that have been a shock compared to the cost of homebuying five years ago, Redfin said.
“Sellers want top dollar because they’re focused on recouping their investment, but buyers are focused on having a low monthly payment, so there’s this gap in expectations that’s making it hard for buyers and sellers to see eye to eye,” Denver Redfin Premier agent Matt Purdy said in the report. “Oftentimes the buyer ends up winning the negotiation because they have options — there are a lot of sellers who are desperate to make a deal happen.”
Increased affordability in October due to a slight drop in mortgage rates drove a surge in sellers listing their homes and accepting offers from buyers, Zillow said in a report this week. The number of sellers who listed homes and the number of those who accepted offers were both up 5 percent year over year to their highest point in October since 2022.
“Buyers and sellers both got some badly needed relief to perk up what is typically a shoulder season for the housing market,” Zillow Senior Economist Kara Ng said in Zillow’s report. “The reaction to lower rates shows that buyers are ready to make offers when affordability improves. While fall has been a sneaky good market for buyers and sellers who stuck it out past the buys season, winter is coming, and it may bring rate volatility with it. This warm-up is not guaranteed to last.”
The largest imbalance in buyers’ favor is currently in San Antonio, Texas, where there were about 18,467 homesellers and 8,497 homebuyers in October, or 117 percent more sellers than buyers. After that, the most imbalanced markets in favor of buyers were Austin, Texas (115 percent more sellers than buyers); Miami, Florida (108 percent); Fort Lauderdale, Florida (107 percent); and Nashville, Tennessee (105 percent).
In Sun Belt markets, where buyers flocked during the pandemic, homebuilders ramped up activity — but now there are too many homes in those regions compared to the buyers out in the market.
The strongest seller’s market in October was Nassau County, New York, with 37.4 percent fewer sellers than buyers (or roughly 7,442 sellers and 11,888 buyers). Other big seller’s markets included Newark, New Jersey (34.9 percent); Montgomery County, Pennsylvania (34 percent); New Brunswick, New Jersey (25.2 percent); Milwaukee, Wisconsin (15.1 percent); and Cleveland, Ohio (14.4 percent).
Out of the 50 most populous metros, 35 were buyer’s markets, nine were balanced and six were seller’s markets, Redfin reported.
