Homeowners looking to sell are in for some tough news.
In the coming months, the real estate market is about to see a shift, and it’s not in their favor.
As US home listing prices hit an all-time high, properties are just sitting on the market, causing owners to slash prices and offer crazy concessions.
The value of homes on the market is now $698 billion, up 20.3 percent from a year ago, and a new record, according to Redfin.
Too much inventory flooding the market is also slowing demand.
The number of sellers is much higher than buyers, Redfin chief economist Daryl Fairweather told the Daily Mail.
‘Right now there are nearly half a million more home sellers than buyers in the market, which means that prices will have to come down in order to lure enough buyers back into the market to match the number of sellers,’ she said.
‘I think more homeowners are going to have to bite the bullet and lower their prices.’
This stunning property in Miami, Florida, has plummeted 10 percent – or $275,000 – since it was listed
Redfin’s Daryl Fairweather says there are half a million more home sellers than buyers now
‘We expect tariffs to remain high, which will continue to weigh on demand,’ Fairweather continued.
Redfin forecasts that prices will drop 1 percent by the end of the year, she said.
‘Although the economy and labor market remain strong, we haven’t yet felt the full impact of tariffs.
‘If tariffs remain in place, it’s possible we enter into a recession that would result in lower rates and potentially more people interested in borrowing to buy a home at those rates.
‘But we think the most likely scenario is that we stay in our current tariff back-and-forth, which means rates remain high, and prices must fall.’
Fairweather said the fact the rental market has gotten better is not helping homeowners either.
Owners will have to understand that in order to compete in this market, they need to either price more conservatively at the start, or understand when they have to slash costs.
Otherwise, the home is going to sit, she warned.
As US home listing prices hit an all-time high, properties are just sitting on the market
‘People who bought in the frenzy of 2021 or 2022 are having a hard time letting go of peak prices,’ said Corey Stambaugh, a Redfin agent based in North Carolina
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The number of homes on the market nationwide is at its highest level in five years.
Mortgage rates, high HOA fees and an uncertain economy are scaring off buyers, while sellers try to cash out due to the exact same problems.
But for those able to buy, there’s opportunity for deals. Buyers likely won’t face bidding wars and can also negotiate some concessions.
House hunters are now negotiating lower prices, getting their HOA fees paid in advance, asking for repairs (and getting them paid for), and demanding mortgage-rate buydowns.
Nearly half of all sellers are now throwing in concessions as the housing market slows to levels not seen since the Great Recession. Many are even accepting below-asking offers.
‘People who bought in the frenzy of 2021 or 2022 are having a hard time letting go of peak prices,’ said Corey Stambaugh, a Redfin agent based in North Carolina.
‘But after a couple of weeks with no bites, they come down to earth — and that’s when the real deals happen.’
One agent said a seller offered to cover HOA fees.
These extras come on top of any price negotiations and highlight just how tough the market has become for sellers.
Overall, Fairweather says she expects most homeowners will have to lower the price of their home in order to sell, so buyers can justify paying the current mortgage rate over 6.5 percent.