The Current Real Estate Market: Heading Toward a Buyer’s Market

The real estate market is always in flux, but right now, we’re seeing a subtle but important shift. While we’re not quite in a true buyer’s market yet, signs are pointing toward that direction. As we enter a more neutral phase, we can expect further changes, particularly with the increasing inventory, which traditionally signals the start of a buyer’s market.

A Neutral Market: What It Means

For the time being, the market is considered neutral—neither heavily favoring buyers nor sellers. In a neutral market, both parties have more balanced leverage. Sellers are no longer experiencing the frenzied bidding wars that drove home prices higher in recent years. Meanwhile, buyers have more inventory to choose from, giving them more opportunities to make decisions without feeling rushed.
Homes may still sell relatively quickly, but the days of multiple offers above asking price are becoming less common. Interest rates have played a role in cooling things down, and as a result, the market has started to stabilize. However, this is far from a buyer’s market—yet.

Signs We’re Heading Toward a Buyer’s Market

What we’re really seeing is a shift in the right direction for buyers. While inventory is still not at the levels some would consider ideal for a buyer’s market, the rise in available listings is starting to shift the power dynamics. When there are more homes on the market, buyers have the ability to compare and make offers with more confidence.
We’re also seeing a trend where homes are sitting longer on the market before being sold, indicating that sellers may need to adjust their expectations. Price reductions, once rare in the recent seller-dominated market, are now happening more frequently as sellers try to remain competitive.

What This Means for Buyers

For buyers, this period offers more flexibility. With more listings to consider, buyers can afford to take their time in evaluating their options. The pressure to make an offer immediately or escalate bids in a competitive scenario has diminished, which allows buyers to negotiate better terms, request repairs, or even ask for closing cost assistance. However, the market is still experiencing relatively high interest rates, which can affect purchasing power. Despite that, the availability of homes means that buyers who are ready to move can take advantage of the increased options and more balanced negotiations.

What This Means for Sellers

Sellers now have to adjust their strategies. While prices may not be soaring as they once were, homes that are well-priced, staged, and marketed effectively can still sell at strong values. However, sellers need to understand that the high-demand, low-inventory days are behind us for now. Flexibility in negotiations and being open to price adjustments might be necessary to make the sale.

Looking Ahead: Preparing for the Buyer’s Market

We’re not yet in a buyer’s market, but all signs point to a shift in that direction. As inventory levels continue to rise and buyer demand begins to stabilize, it’s important to recognize these changes early. For buyers, the future holds more options and better opportunities. For sellers, it will be crucial to adapt to these changes by being flexible and setting realistic expectations for sale prices and timelines.

At REALIV, we are committed to staying on top of market trends and helping our clients navigate the transition. Whether you’re a buyer looking to take advantage of a growing inventory or a seller preparing for the evolving market, we’re here to guide you every step of the way.