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Are you considering buying a home, but unsure if now is the right time? Many people are waiting and wondering what the market will do next. But here’s something only the savviest buyers realize:
This summer might be the best time to buy in years. Here are three big reasons why.
1. You Have More Negotiating Power
After several years of sellers having all the leverage, the balance of power is starting to shift. Check out the graph below. It uses data from Redfin to show that right now, there are more sellers active in the market than buyers:
Take a look at what happened from 2021 to roughly 2023. During that period, there were far more buyers (represented by the blue line) looking to purchase homes than there were homes for sale (represented by the green line). That intense competition, bidding wars, and the exponential price growth the market saw back then.
Now, the market has shifted, and buyers are regaining their negotiating power as a result. With more sellers than buyers, sellers may be more willing to pay for repairs, cover some of your closing costs, or lower their asking price. The return of this kind of normal balance is a sign of a much healthier, more sustainable market. As Lawrence Yun, Chief Economist of the National Association of Realtors (NAR), explains:
“ . . . with housing inventory levels reaching five-year highs, homebuyers in nearly every region of the country are in a better position to negotiate more favorable terms.”
And just in case you’re wondering, there are too many homes on the market; here’s what I know. Overall inventory is still lower than usual, so you don’t have a nationwide oversupply or a crash.
2. You Have More Choices
The number of homes for sale has significantly improved. Based on the latest data from Realtor.com, more homes were listed this May than in May 2024 or May 2023 (see graph below):
And more homes for sale means more choices. There’s a good, perfect match just hit the market – or it will soon. So, it’sit’srit’s a greatexplore whatwhat’what’ss Jake Krimmel, Economist at Realtor.com, says:
“With more fresh inventory hitting the market, buyers have better opportunities to find a home that fits their needs.”
3. You May See More Flexibility on Price
With more homes for sale, they’re at the same frenzied pace they were just a few years ago.
Since homes are taking longer to sell, some sellers are choosing to lower their asking prices to attract buyers or expedite the process. And thatthat’sbe-expected. According to Realtor.com, 19.1% of listings had a price cut this May (see graph below):
That’s the aight month where more sellers have reduced their prices. As May, the volume of prices has returned to normal levels. This is yet another sign of the return to a more balanced market.
While you shouldn’t expect to count, you may find sellers are a bit more flexible right now. As a recent article from The Street says:
“Although sellers have had the upper hand in the housing market over the past few years, houses are now staying on the market for longer, shifting negotiating power back to homebuyers.”
Just remember, most sellers still aren’t truthful – only those who overprice to start, this isn’t it; it’s a sign that sellers have outdated expectations in a shifting market.
Bottom Line
This summer brings a powerful combo for buyers: more homes to choose from, less competition, and sellers being more flexible on pricing. If you’re ready to move, let’s connect to find the right home this summer, marking a new chapter in your next home journey.
