Are we Heading into a Balanced Market?

Sellers have had the upper hand, but with growing inventory, is that about to change? A balanced market, with a five-to-seven-month supply of homes, gives neither buyers nor sellers an advantage. Is that where we’re headed? Check out the graph below using data from the National Association of Realtors (NAR) to see where inventory stands.

It’s still a seller’s market, just less intense than in recent years. it’s just not as frenzied of a seller’s market as it’s been over the past few years. As Mark Fleming, Chief Economist at First American, says “The faster housing supply increases, the more affordability improves and the strength of a seller’s market wanes.” Lawrence Yun, Chief Economist at NAR, adds that homes are staying on the market longer, sellers are receiving fewer offers, and buyers are increasingly requesting inspections and appraisals as inventory rises nationally.

What This Means for You and Your Move
Here’s how this shift impacts you and the market condition you’ll face when you move. Lawrence Yun, Chief Economist at NAR, explains: “Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”

The graphs below use the latest data from NAR to help show examples of these changes:

Homes Are Sitting on the Market Longer: Since more homes are on the market, they’re not selling quite as fast. For buyers, this means you may have more time to find the right home. For sellers, it’s important to price your house right if you want it to sell. If you don’t, buyers might choose better-priced options.

Sellers Are Receiving Fewer Offers: As a seller, you might need to be more flexible and willing to compromise on price or terms to close the deal. For buyers, you could start to face less intense competition since you have more options to choose from.

Fewer Buyers Are Waiving Inspections: As a buyer, you have more negation power now. And that’s why fewer buyers are waiving inspections. For sellers, this means you need to be ready to negotiate and address repair requests to keep the sale moving forward.

Whether you’re buying or selling, understanding how the market is changing gives you a big advantage. Understanding the current dynamics gives you a strategic edge—whether it’s timing your sale, setting the right price, or negotiating the best deal. If you’re considering buying or selling, or if you have any questions about how these market shifts might affect you, feel free to DM me. I’m here to help you navigate the process and make the most of these changes.