Homebuyers

More Homes Are Hitting the Market This Summer. What Homebuyers Need to Know

For years, buying a home meant moving fast and compromising faster. Homebuyers toured crowded open houses, furiously refreshed listing apps, and often felt pressured to make an offer immediately.

Yet this year, buyers have more homes for sale to choose from.

Nationally, the number of new home listings reached their highest April level since 2022, according to Realtor.com’s Spring Housing Market Update. Meanwhile, the overall housing stock has climbed 22% above the 2023 low point.

For homebuyers, the increase in new listings may create meaningful advantages.

“A few years back, the post-pandemic housing market was defined by bidding wars and waived concessions,” said Jake Krimmel, senior economist at Realtor.com. “We are a far cry from that now. Most local housing markets are much more buyer-friendly than they were even a year or two ago.”

Here’s what smart homebuyers should know as the summer housing market begins.

Why the number of homes for sale is finally improving

After years of hesitation, many homeowners who delayed moving are now listing their homes. This is slowly rebuilding the housing stock across much of the country.

Parts of the Midwest and the South are seeing more meaningful gains in the number of homes for sale. Homebuyers in Virginia Beach, Va., Indianapolis, Ind., and Louisville, Ky, saw some of the largest increases in housing supply year-over-year in April.

(Realtor.com looked at the 50 largest metropolitan areas, which includes the main city and surrounding towns, suburbs, and smaller urban areas.)

Even modest increases in the housing stock can dramatically change the homebuying experience.

More listings mean buyers may finally have time to compare homes, revisit neighborhoods, and think more carefully about trade-offs instead of rushing into the first workable option.

However, not every local housing market suddenly feels flush with homes for sale. The number of homes on the market in the Northeast remains relatively tight. Yet conditions can vary sharply across metro areas, making local housing market trends especially important for buyers deciding when and where to move.

More homes for sale mean more leverage for homebuyers

For much of the past few years, homebuyers have had limited negotiating power.

Waiving contingencies, such as appraisals and home inspections, offering above asking price, and accepting homes “as is” often felt necessary just to compete. As the housing stock improves, that’s changing.

“When new listings rise, not only does that mean more options for buyers, but it also means more competition among sellers themselves,” said Krimmel.

Buyers now have more room to negotiate repairs, ask for seller-paid closing costs, mortgage rate buydowns, or even a lower list price, especially when a home has lingered on the market.

Realtor.com found that nearly 40% of sellers now expect to make concessions, up from 30% last year.

Just keep in mind that not all sellers are suddenly flexible. Well-priced homes in desirable neighborhoods can still move quickly for top dollar.

Home pricing realism is reshaping the market

Nationally, the median list price per square foot fell 2.4% year-over-year in April. Softer list prices paired suggest sellers are adjusting expectations earlier rather than chasing unrealistic numbers and cutting later.

“What we are seeing this year is that sellers are getting realistic about their diminished leverage up front,” said Krimmel. “List prices are falling alongside fewer price cuts, which tells us that homes are priced to sell this spring.”

For homebuyers, paying attention to home price trends and pricing strategies matters more than ever.

A home priced realistically from day one may attract attention quickly and leave less room for negotiation. Listings that have been on the market longer or have seen multiple price reductions may signal greater flexibility.

Understanding the difference between a fairly priced home and an overpriced one can help buyers avoid overpaying or missing an opportunity to negotiate.

Where homebuyers may have the biggest advantage

Several major metros entered spring already in buyer’s market territory, where buyers have the advantage. These included Atlanta; Austin, Texas; Jacksonville, Fla. and Miami; Nashville, Tenn.; Orlando and Tampa, Fla.; and Riverside, Calif. In April, according to Realtor.com.

“These buyers’ markets and ones where new listing growth has outpaced contract signings so far this year are precisely where buyers can grab the upper hand in negotiations this spring,” said Krimmel.

Buyers willing to broaden their search or revisit areas they had ruled out may find more flexibility than they have seen in years.