Americans in the market for buying a new home are seeing the markets in some parts of the country turn in their favor after years of seller’s markets prevailing.
Realtor.com on Tuesday released the second-quarter edition of its market clock report, which analyzes national and metro-level housing conditions based on factors like months of supply, time on the market, price fluctuations and list-to-sale ratio.
Of the 100 metro areas included in the analysis, it found there are 19 metro areas that are in buyer’s market territory and nine trending toward that may join those ranks by the end of the third quarter.
The nine metro areas that are emerging as buyer’s markets are spread around the country and include Atlanta; Bakersfield, California; Birmingham, Alabama; Honolulu; Houston; Memphis; Riverside, California; San Antonio; and Syracuse, New York.
THE UNTAPPED OPPORTUNITY THAT COULD HELP CLOSE AMERICA’S HOUSING SHORTAGE
That geographic diversity stands in stark contrast to the list of the 19 metro areas currently in a buyer’s market, 18 of which were located in the South, with Colorado Springs, Colorado, the lone exception.
Here’s a look at what’s driving the improving conditions for would-be homebuyers in five of the nine emerging buyer’s markets identified in Realtor.com’s report:
Atlanta, Georgia
“Our inventory has been building, homes are sitting on the market longer and sellers are becoming more willing to negotiate on price, closing cost and mortgage rate buy-downs,” said LeAnne Weathers, a realty agent with eXp in Atlanta, adding that buyers have “more choices and less pressure” in this environment.
“The biggest local factors driving that shift are increased housing supply, higher mortgage rates — keeping some of the buyers on the sidelines — and a more balanced market overall.”
STARTER HOME AFFORDABILITY IS CRAWLING BACK. THESE REGIONS ARE BEST FOR FIRST-TIME BUYERS
Riverside, California
Daniel Beer, an eXp realty agent in Riverside, said in the Southern California community’s markets, “buyers have the most leverage with condos. Inventory levels for condos are significantly higher than single-family homes and continue to grow.”
“Skyrocketing HOA fees due to government regulations and other factors contributing to increased operating costs are pushing more owners to sell, giving buyers a lot of choice,” Beer added.
Syracuse, New York
“Buyers in our market have had less competition in the past six months, which is allowing for more contracts to be accepted with home inspection contingencies,” said Ben Gray, an eXp realty agent in Syracuse.
“Many buyers are expanding their search criteria to include homes further out from the metro area, going as far as 45 to 50 minutes to get offers accepted,” Gray said.
THE OVERLOOKED OBSTACLE KEEPING AMERICA FROM BUILDING THE HOMES IT NEEDS
Houston, Texas
Thao Nguyen, an eXp realty agent in Houston, said “buyers finally have options again” in the metroplex, noting data from the Houston Association of Realtors showed that single-family inventory has risen to 5.2 months.
“That means buyers have more time to compare homes, conduct inspections and negotiate instead of feeling pressured into bidding wars. As a listing agent, I’m also seeing more sellers willing to contribute toward closing costs or mortgage rate buy-downs to get deals across the finish line,” Nguyen added.
San Antonio, Texas
“New construction is where buyers have the strongest negotiating position. Builders are aggressively offering interest rate buydowns, covering closing costs and providing additional incentives that many resale sellers simply can’t match,” said Rommy Deais, an eXp realty agent in San Antonio.
Mario Victorica, also a realty agent with eXp in San Antonio, said the area is “already seeing longer days on market, more price reductions and increased seller flexibility.”
“Unless mortgage rates decline significantly and bring a surge of buyers back into the market, those conditions should continue to favor buyers over the next few months,” Victorica added.
Read the full article here