The post-pandemic housing market has been characterized by tight inventory, with sellers holding off due to historically low mortgage rates. However, that landscape is shifting.
This summer, we’ve seen a notable change: more homeowners are listing their properties, leading to an “inventory infusion.”
According to Zillow, the number of new listings has surged by 133% compared to last year’s supply levels. This increase is primarily driven by sellers who can no longer hold back, despite their locked-in low mortgage rates. Life events like marriage, divorce, and job relocations are prompting these homeowners to enter the market.
As a result, the competition among buyers has cooled somewhat. Although home prices are still on the rise, we’re not seeing the dramatic spikes that defined previous years. This new balance in the market creates a unique scenario for both buyers and sellers.
Nationally, Zillow’s Heat Index Report suggests that the market is becoming slightly more favorable for buyers. Yet, sellers maintain an edge as the current inventory levels remain 23% below pre-pandemic numbers. Additionally, we’re witnessing more price reductions on properties that have been on the market for over 30 days. This presents a valuable opportunity for buyers to negotiate and potentially purchase a home at a price lower than the initial listing.
With these shifts in the market, the importance of working with an experienced real estate agent cannot be overstated. Whether you’re buying or selling, having a skilled negotiator on your side can make all the difference.