Redfin: Buyers’ Advantage Finally Starting to Shrink

(Image courtesy of Nico C/pexels.com)

Redfin, Seattle, released its latest report on the balance of homebuyers and sellers in the U.S. While it’s still a buyer’s market, the imbalance isn’t as extreme as it has been in recent months.

There were an estimated 46.5% more home sellers than buyers in the U.S. housing market in April, down from 47.5% in March and the high of 48.9% notched in December.

Redfin defines a buyer’s market when there are over 10% more sellers than buyers. When there are more than 10% fewer sellers than buyers, it’s a seller’s market. And when the gap is within 10% in either direction, it’s defined as a balanced market.

“Homebuyer demand has been dwindling for months, but finally ticked up in April thanks to a strengthening job market and declining recession risk. More house hunters entering the market helped narrow the gap between the number of buyers and sellers,” said Redfin Senior Economist Asad Khan. “If the number of buyers continues to grow, more homeowners may see it as an opportunity to list their homes, helping bring the market out of this deep freeze.”

There were an estimated 1 million homebuyers in the market in April, up 2% from March–the largest increase in 13 months. There were an estimated 1.5 million sellers in the market, up 1.3% month-over-month. That’s the largest increase in a year, but still smaller than the increase in buyers.

There are now seven major U.S. metro areas deemed seller’s markets, up from five in March.

Nassau County, N.Y., is the strongest seller’s market, with 28.4% fewer sellers than buyers. Other seller’s markets include Newark, N.J., Montgomery County, Pa., New Brunswick, N.J., Providence, R.I., San Francisco and Milwaukee.

The strongest buyer’s market is Miami, with an estimated 137% more sellers than buyers. Other strong buyer’s markets are Nashville, Tenn., San Antonio, Houston and Las Vegas.