We’re in a Buyer’s Market: Redfin Data Reveals a National Shift
According to Redfin’s latest updates, the U.S. housing market has officially shifted in favor of buyers for the first time this decade. Recent data from February paints a clear picture of a market that is increasingly advantageous for those looking to purchase a home.
Key Data Highlights
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Increased Inventory:
The for-sale supply now stands at 3.7 months—the highest level since February 2019—up from 3.3 months a year ago. This means that more homes are available for buyers, providing them with greater options and less urgency. -
Falling Pending Sales:
Pending sales have declined by 6.3%, reaching levels not seen since the early days of the pandemic in April 2020. This reduction in pending contracts indicates that buyers are taking a more measured approach in today’s market. -
Longer Time on Market:
The typical home is spending 56 days on the market before going under contract—the longest period since February 2020. A slower market gives buyers more room to negotiate and reduces the pressure to make hasty decisions. -
Modest Home Price Growth:
Over the four weeks ending February 16th, the median U.S. home-sale price increased by 3.7% year-over-year—the smallest annual gain since September. This slowdown in price escalation suggests that the rapid appreciation seen in previous years is easing off. -
Larger Price Discounts:
In January, the typical home sold for 1.8% less than its final asking price, marking the biggest discount in nearly two years. This discount is a clear signal that sellers are becoming more flexible as the market shifts. -
High Cancellation Rates:
Home purchase cancellations hit their highest January rate since at least 2017, further emphasizing buyer hesitancy in a market marked by uncertainty and high borrowing costs.
Our Take
While regional markets such as those in the Northeast—like Rochester and Buffalo—may still lean toward seller dominance, the national trend unmistakably favors buyers. Despite high home prices and mortgage rates hovering around 7%, the current market conditions offer buyers increased negotiating power. Homes are selling for an average of 2% below asking price, and with a longer median time on market (57 days to contract), buyers have more time to carefully evaluate their options and negotiate favorable terms on both price and financing.
These trends indicate that the housing market is transitioning to a more balanced environment, where buyer leverage is growing. For real estate professionals, it’s essential to help clients understand these dynamics and capitalize on the opportunities presented by a buyer’s market—whether through creative financing strategies or well-timed offers.
Contact Abdo Pierre Faissal for unparalleled real estate service.
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