Is a Buyer’s Market Really Around the Corner? Here’s Why the Answer May Surprise You

Have you noticed some changes in the housing market recently? Homes are sitting on the market a little longer, and prices are fluctuating depending on where you are. It’s made a lot of people wonder, “Are we finally entering a buyer’s market?” My answer: not quite. Instead, I believe we’re heading toward a more balanced market—one where both buyers and sellers can find opportunities if they understand the current landscape.

Here’s what you need to know about where things are heading, and how you can position yourself to get the best deal, whether you’re buying or selling.

1. The Market is Balancing, Not Collapsing

While it’s true that demand is cooling off after years of red-hot activity, don’t expect prices to plummet any time soon. One key reason is inventory. Nationwide, housing supply is still historically low, and while it’s ticking up in some areas, it’s not nearly enough to flood the market with homes. The National Association of Realtors reports that although inventory has risen, we’re still well below what would be considered a “buyer’s market” threshold.

For a true buyer’s market to occur, we’d need a significant oversupply of homes—where demand drops well below what’s available. As of now, the imbalance between low inventory and softening demand is keeping the market in check. Yes, buyers might find better deals than they did a year ago, but sellers still hold leverage in many areas.

2. Condition is Everything

In today’s market, buyers are much more cautious about what they’re getting into. Homes that are move-in ready stand out, while those that need work are sitting longer. Affordability is top of mind for buyers, and the reality is that many don’t have the funds to make repairs after closing. According to a recent report, 77% of homebuyers are concerned about rising mortgage rates and affordability. That means if your home isn’t in good condition, you may see fewer offers—and the ones you do get might be lower than expected

But there’s good news. With the right preparation, your home can still shine in this market. Work with a knowledgeable agent (that’s where I come in!) to determine what improvements are necessary to make your home stand out. A pre-listing inspection can help identify any potential issues ahead of time, ensuring you’re fully prepared when your home hits the market.

3. The Market Could Pick Up Speed Again

While it feels like things are slowing down, we may see a shift sooner than expected. One factor to watch closely is interest rates. Many experts predict the Federal Reserve will ease interest rates in response to a softer economic outlook. Lower rates will likely bring a wave of buyers back into the market. For months, potential buyers have been sitting on the sidelines, waiting for better borrowing conditions. When rates drop, that pent-up demand could create a surge in activity.

If you’re a seller, this is an excellent reason to start preparing your home for the market now, rather than waiting. If you’re a buyer, it’s a great time to stay engaged and keep an eye on rates, as competition could heat up quickly.

As always, if you’re curious about what’s happening in your specific area, or if you want to discuss buying or selling strategies, feel free to give me a call or send me an email. I’m here to help you navigate the market and make the best decisions for your future.

Debra Truelove, Realtor®

(253) 678-2225