For the first time in 12 years, home retailers exceed buyers – and this can mean lower prices soon

After years of hot red offer wars, the apartment market can go to a cold front and can make prices fall. But there is little catch.

The number of US home retailers now dramatically exceeds the number of buyers, according to a new Redfin report, signaling a power shift that is not seen as the real estate firm began tracking such data in 2013.

Since April, there were almost 500,000 other houses on the market than the buyers actively – marking the wide gap between the two groups in that time space.

Inequality hints for a wider market slowdown, not because houses are becoming more affordable, but because fewer people are ready – or capable – to buy. And to sell, homeowners may have to lower their prices for the power of people who are actively hunting.

Right now, despite the cooling question, prices continue to climb.

The average sales pricing for an existing home rose 1.8% year by year to April to $ 414,000, a record for that month, according to the National Association of Realtors. This marks the 22nd month of direct increasing annual prices, even when the affordability is eroded.

Promoting slowdown is the raised mortgage rate, which is increasing less than 7%.

The highest borrowing costs are complicating monthly payments, preventing new entry during what is usually the most busy season for home purchases.

At the same time, economic jitters – ranging from an unstable stock market to global trade concerts – are making customers more careful.

“Based on previous spring sales seasons, I have noticed that many lists have been sitting longer in the market (this year),” said Karen Pohl, a real estate agent in Las Vegas, for CNN.

“I think there are many sellers who still have really ambitious prices for their homes, and it may be time to become realistic at their prices in order to be competitive in the market.” Pohl added that more vendors have begun to provide prices or discounts.

List growth has been the largest since March 2020, while the buyer’s pool has been at its lowest point since the beginning of the pandemia, with the exception of April 2020 when the blockages raised the activity.

Redfin appreciates the buyer’s activity based on waiting sales and the typical timeframe from the initial home tour to buy.

A recent study by the Bank of America shows that 75% of potential buyers are waiting for home prices and interest rates to fall before taking an action.

However, Redfin does not expect the most price correction.

“In general, the saleswoman’s ratio with buyers appears to be a predictor of home prices, but with a delay of about three to six months,” said Chen Zhao, head of the economy research company for CNN.

“The reason we think house prices will fall by 1% and not something bigger is because it is actually very difficult for the prices of the houses to fall, unless the sellers have to sell,” she said. “Sellers can always decide that they do not like the prices they are currently on the market and decide to stay in their home.”