More Sellers Than Buyers: What's Happening in the U. S. Housing Market?

In October, the U.S. housing market witnessed a notable shift with more sellers than buyers, marking the largest gap since 2013. This trend presents buyers with increased choices and better negotiation power. However, the situation varies across the country.

Key Developments

• Buyer Numbers Drop: The number of buyers decreased by 1.7%, reaching the lowest point since the pandemic began. High housing costs and economic uncertainty are keeping potential buyers on the sidelines.
• Seller Retreat: Sellers also saw a decline, with a 0.5% decrease in numbers. Many are finding it challenging to attract buyers, leading to delistings or reluctance to list properties.

Regional Trends

• Buyer's Markets: Texas and Florida are experiencing the most significant buyer's markets, with cities like San Antonio and Austin seeing a large imbalance between sellers and buyers. This trend is partly due to increased construction activity during the pandemic.
• Seller's Markets: The strongest seller's markets are in the Tri-State area, with Nassau County, NY, leading the pack.
• San Francisco Shift: San Francisco, previously a buyer's market, has shifted to a balanced market, reflecting the dynamic nature of the housing market.

Market Challenges

The current conditions highlight the challenges faced by both buyers and sellers. Buyers are struggling with affordability, while sellers are finding it hard to meet buyer expectations. This mismatch is making it difficult for both parties to find common ground.