Redfin: Homebuyers, Sellers Both Retreat
(Image courtesy of David Brown/pexels.com)
Redfin, Seattle, reported that the U.S. housing market has seen both buyers and sellers retreating recently.
The U.S. housing market has lost about 14,000 home sellers over the past two months, down to 1.95 million in July from 1.96 million in May. That’s the first decline in the number of sellers since July 2023.
There were an estimated 1.43 million homebuyers in July, the lowest level on records going back to 2013 (with the exception of early in the COVID-19 pandemic).
Despite the drop, sellers outnumber buyers by the widest margin in records dating back to 2013. There are 36.3% more sellers in the market than buyers.
“Homebuyers are spooked by high home prices, high mortgage rates and economic uncertainty, and now sellers are spooked because buyers are spooked,” said Redfin Senior Economist Asad Khan. “Some sellers are delisting their homes or choosing not to list at all after seeing other houses sit on the market for weeks or months, only to fetch less than the asking price.”
Redfin noted that despite the general sentiment, it’s still a buyer’s market. The firm defines a buyer’s market as when there are over 10% more sellers than buyers.
“We’re likely in the most buyer-friendly housing market since the 2008 financial crisis,” Khan said. “Back then, inventory piled up as foreclosures surged, and demand was weak, meaning buyers had negotiating power. We’re not headed for another 2008, though; many of today’s homeowners have built substantial equity thanks to the recent surge in home values, and today’s borrowers must meet stricter lending standards. Plus, there are more options for avoiding foreclosure if a homeowner is at risk of defaulting, such as loan modification.”
The strongest buyer’s market is in Miami, where there are an estimated 21,637 home sellers and 8,293 buyers, or 160.9% more sellers than buyers. Fort Lauderdale, Fla., has 151.2% more sellers than buyers, Austin, Texas, has 123.8% more sellers than buyers, West Palm Beach, Fla., has 123.4% more sellers than buyers and San Antonio has 113.1% more sellers than buyers.
However, some spots are still seller’s markets, including Newark, N.J., with 52% fewer sellers than buyers, Nassau County, N.Y., with 40.5% fewer sellers than buyers, Montgomery County, Pa., with 36.1% fewer sellers than buyers, New Brunswick, N.J., with 22.2% fewer sellers than buyers and Minneapolis, with 12.5% fewer sellers than buyers.
