The tables are running on the American housing market, and this time, buyers call shots.
There are about 1.9 million houses for sale across the country, but only about 1.5 million active buyers. This leaves a gap of almost 500,000 – the largest recorded, according to Redfin.
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“The balance of powers on the American housing market turned to buyers, but many sellers have not yet seen or accepted writing on the wall,” said the main economist of Redfin Asad Khan. “Many always hope that their house is the exception and will look for the best dollar.”
The prices of American houses increased further by 3.9% from one year to the next in February – a slight decrease compared to the gain of 4.1% of January – but an increasing offer of houses and softening mortgage rates cools the market, according to the S&P Corelogic Case-Shiller Home Prix Index.
This left some sellers – especially those who bought at the top – trying to recover their investment as well as buyers’ demand is starting to slow down. With the rising lists and that buyers become more selective, the big question is: is now the best time to sell?
Redfin economists expect the prices of houses to decrease by around 1% by the end of 2025. Demand is already down. Sales of existing houses fell 1.1% from one year to the next in April, reaching a hollow of six months.
The purchase of a house remains a major financial jump. With an economic uncertainty fueled by changing prices, layoffs and federal policies, many potential buyers take a break from one of the greatest purchases in life.
The sellers already feel the bite. Take a single -family house in Sonoma, California: Once listed for more than $ 3.5 million during the pandemic boom, the property of 3 bedrooms and 4 bathrooms was finally sold at 1.86 million dollars – almost half of its original price.
The house experienced several price reductions before its sale in April for 6.8% below its last requested price of $ 1.995 million, according to Zillow, as Newsweek reported.
This sale reflects how far the market came from its peak of 2021. At the time, the mortgage rates with a rocky background and the limited stocks fueled the tender wars and brought up the prices. But now things seem different.
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If you are thinking of selling, don’t wait too long. Registration earlier could help you avoid hunting a cooling market. And if your house is already listed and does not draw much attention, it may be time to change speed – that it means adjusting your requested price or making small upgrades with high impact to help it stand out.
