Pending sales in January fell to their lowest level since the early days of the pandemic
The housing market has turned into a buyer's market for the first time this decade.
There was 3.7 months of for-sale supply sitting in the housing market in January, the most since February 2019 and up from 3.3 months of supply a year ago,according to real-estate website Redfin.
Historically, a buyers market has been defined as when months of supply reaches 4-6 months but old definitions dont fit the reality of todays market, saidChen Zhao, Redfin's economics research lead, in a press release.
Redfin said the following shows buyersare in favor:
- Sales slowing: Pending sales fell 6.3% in January to the lowest mark since the early days of the pandemic in April 2020.
- Listings sitting longer: The typical home sold in January had been on the market for nearly two months, the longestsince February 2020.
- Price growth slowing: The median U.S. home price was up 4.1% year over year in January, the slowest growth since September and more in line with the rate experienced in the late 2010s.
- More negotiation: The typical home sold for 1.8% less than its final asking price in January, the biggest discount in nearly two years.
- Deals falling through: Home purchases were canceled at the highest January rate since at least 2017 last month.
Still, Zhaosaid plenty of homebuyers"don't feel like they are in a buyer's market" because home prices are at near-record highs and mortgage rates are elevated.
She also said these favorable conditions for homebuyers might not last long.
"But we are more than halfway through the decade and this is the first time we can say that buyers have as much, if not more, power than sellers," Zhao said.
Where is it abuyer's market in the U.S.?
The picture is different across the U.S.: Homebuyers have much more negotiating power in the Sun Belt, but sellers are favored in the Northeast and Midwest, Redfin said.
It is especially good for homebuyers in Florida, which had six of the top 10 major metros with the most months of supply.
Below is a table on the top 10 buyer's markets among 100 of the most-populousmetros in the U.S.
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Posted: 2025-02-20 01:13:09
