If you've been following the real estate market for the past few years, you’re well aware of how extreme the seller’s market has been. But with the increase in property listings, might this situation be changing? Here’s a summary of what you need to know.
What is a Balanced Market?
A balanced market is generally defined as one where the supply of homes available for sale covers about 5 to 7 months of demand. In other words, the number of listings is approximately 5 to 7 times the number of buyers. In such a market, neither buyers nor sellers have a distinct advantage. Prices tend to stabilize, and there are more options available to choose from. If the market transitions from being a seller’s market, where sellers have all the leverage, to a balanced market, it would be good news for those planning to move. The question is whether the market is actually heading in that direction.
Earlier this year, the nationwide housing supply started at around 3 months and has now increased to 4 months. While this might not seem like a significant change, it signals that the market is approaching balance. However, it’s not yet in a fully balanced state. (Note that this increase in inventory does not indicate an oversupply that could lead to a crash!) Despite the recent increase, supply is still insufficient for such a scenario.
The graph below shows the past and present inventory levels using data from the National Association of Realtors (NAR).
Currently, it’s still a seller’s market, just not as extreme as the past few years. However, as housing supply increases, the likelihood of buying a home improves, and the advantages for sellers will gradually diminish. In fact, homes are staying on the market a bit longer, and the number of offers sellers are receiving has decreased. Just a few months ago, many transactions were happening without inspections, but that trend is also declining. The graph below uses the latest data from NAR and Realtor.com to illustrate these changes.
Homes Staying on the Market Longer:
With more listings, homes are not selling as quickly. For buyers, this means more time to find the right property. Sellers need to price their homes appropriately to sell quickly; otherwise, buyers might choose better-priced options.
Fewer Offers:
Sellers may need to be more flexible with pricing or terms to close deals. Buyers have more options, which may reduce competition.
Fewer Waivers of Inspections:
Buyers have more negotiating power, resulting in fewer waivers of inspections. Sellers should be prepared to negotiate and respond to repair requests to keep transactions moving forward.
Again, this is a nationwide overview. The market type in your area will vary based on the number of listings available. In my area of Illinois, for instance, regions such as Northbrook, Glenview, and Naperville, which are popular among Korean buyers, still experience an extreme seller’s market with supply only about 1.1 to 1.2 times the demand. Therefore, it’s advisable to rely on local real estate agents to understand the specific conditions in your area.
#시카고복덕방 #리얼터 #리얼터한상철 #한인리얼터 #시카고한인리얼터 #시카고 #일리노이 #일리노이한인리얼터 #시카고리얼터 #한인부동산칼럼 #일리노이리얼터 #부동산 #한인부동산 #부동산중개인 #미국 #Realtor_SangHan #realtorsanghan #realtor #realestateagent #help_everyone_live_in_a_better_home #chicagokoreanrealtor #mortgage ##marketforecast #2025realestatemarket #buyersmarket
Комментарии