Are We Finally in a Buyer's Market? What the Numbers Are Not Telling You

Something Unusual Is Happening in Housing Right Now

If you have been watching the housing market and trying to figure out whether now is a good time to buy, the signals are genuinely mixed. Inventory is up considerably compared to the shortage years of 2020 through 2022. There are more active listings in many markets than there are motivated buyers. By the traditional definition of supply and demand, that should mean prices are falling and buyers are in control.

But that is not quite what is happening. And understanding why reveals exactly where the real opportunity for buyers actually exists right now.

Why Prices Are Holding When They Should Be Falling

The missing piece of the equation is seller motivation. In a typical buyer's market, sellers need to move their properties and price reductions follow naturally when homes sit without offers. Today's market includes a large segment of sellers who are in a fundamentally different position. They accumulated significant equity during the pandemic-era price surge and they are not under financial pressure to sell at a discount.

As David Norris explains, many of these sellers entered the market wanting to sell at a specific number. When that number does not materialize in offers, they pull the listing entirely rather than reduce the price. They can afford to wait, and so they do. This behavior inflates the active inventory count without creating the kind of motivated selling pressure that would push prices down meaningfully.

The standoff that results is genuinely unusual. Homes sit longer, buyers hold back expecting further price drops that may not come, and sellers protect equity they have no intention of giving away.

Two Markets Existing at the Same Time

The most accurate way to describe the current environment is that there are effectively two different markets operating simultaneously. In terms of headline list prices, the market has not fully shifted in buyers' favor. Sellers are anchoring to pandemic-era valuations and the data reflects that stubbornness.

In terms of negotiating leverage, however, buyers who are prepared and working with the right guidance are finding real opportunities that were simply not available two or three years ago. The leverage is there. It just does not look the way most people expect it to.

Where the Real Discounts Are Hidden

The most valuable concessions available to buyers in today's market are often buried in the terms of a transaction rather than visible in the asking price. Sellers who have been sitting on a listing for 30, 45, or 60 days without a serious offer are increasingly open to creative deal structures that allow them to protect their list price publicly while still giving ground in meaningful ways.

Seller credits toward closing costs reduce the cash a buyer needs to bring to settlement. A seller-paid rate buydown can lower a buyer's monthly payment significantly, either for the first few years of the loan or permanently depending on the structure negotiated. Repair credits and inspection concessions that were off the table entirely in the seller's market of recent years are back as realistic asks on the right properties.

As David Norris points out, days on market is often a more honest signal of seller flexibility than the list price itself. A home that has been sitting for 60 days with no price reduction may be far more negotiable than its unchanged asking price suggests. The seller is often quietly motivated even when the listing does not reflect it.

How to Identify the Right Properties to Target

Not every listing that has been sitting deserves a closer look. Some homes are priced unrealistically and will continue to sit until the seller either adjusts or exits the market. Others have condition issues that explain the lack of interest and those issues need to be priced into any offer accordingly.

The properties worth targeting are ones that came to market at a reasonable price relative to comparable sales, have not generated a contract despite adequate time and exposure, and are owned by sellers who have a genuine reason to eventually move even if they are not in distress. Homes where the seller has already relocated, properties that have been relisted after a prior withdrawal, and listings with a history of minor price reductions that still have not produced activity are all worth a strategic conversation.

This Market Rewards Buyers Who Show Up Prepared

The buyers who are finding success in today's environment are not waiting passively for prices to collapse. They are showing up with financing in order, a clear understanding of what they want, and a loan officer who can help them structure offers that go beyond the purchase price to capture every available advantage.

David Norris works with buyers to identify real leverage in today's market and build offers designed to get results without leaving money on the table. Reach out to David Norris to find out what opportunities may be available to you right now.

Sources

NAR.realtor Realtor.com Zillow.com MortgageNewsDaily.com Forbes.com