Redfin: Strongest Buyer’s Market on Record

(Image courtesy of Rubaiya Sharif/pexels.com)

Redfin, Seattle, reported sellers outnumbered buyers by 57.9% in August, marking the largest gap in the firm’s records.

That compares with 52.1% the month before–the second strongest buyer’s market on record.

A surge in listings is what is driving the buyer’s market. There were an estimated 1,534,918 home sellers in the market in August, up 3.9% month-over-month and the most since the start of 2020.

But, there were an estimated 972,300 homebuyers in the market, up 0.1% from the month before.

“With sellers piling into the market and demand falling flat, today’s house hunters can afford to be choosy,” said Asad Khan, a senior economist at Redfin. “Even during a time when housing costs are elevated, the surplus of sellers over buyers makes it a good time to be a house hunter, in some respects. In most markets, buyers should negotiate on price and ask for concessions like repairs or help with closing costs. Buyers shouldn’t assume every seller will budge, especially on a desirable home that’s already priced well, but they don’t need to rush into a deal that doesn’t feel right. For sellers, the message is almost the opposite: Work harder to stand out. Take stock of how other homes are priced, make sure your home is prepped and be prepared to negotiate. With so many competing listings, sellers who want to find a buyer quickly should price competitively from the start.”

Some markets were even more stark. Nashville, Tenn., had 139% more home sellers than buyers. Miami had 138%, Houston had 131%, Orlando, Fla., had 122%, Las Vegas, had 117%, San Antonio had 116%, Austin, Texas, had 115%, and Dallas had 108%.

There are currently only five seller’s markets: Nassau County, N.Y., with 28% fewer sellers than buyers; Newark, N.J., with 21% fewer sellers than buyers; Montgomery County, Pa., with 20% fewer sellers than buyers, Milwaukee, Wis., with 18% fewer sellers than buyers and San Francisco with 12% fewer sellers than buyers.

Redfin defines a market where there are more than 10% more sellers than buyers as a buyer’s market and a market where there are more than 10% fewer sellers than buyers as a seller’s market. Less than plus or minus 10% is a balanced market.