Housing News

More Homes for Sale, More Negotiating Power: What the Housing Market Means for Homebuyers

Existing home sales picked up in September. But the bigger news for homebuyers may be the growing number of homes available to purchase.

Sales rose 1.5% from August to September, according to data from the National Association of Realtors (NAR). Meanwhile, housing stock climbed to 1.6 million homes, up 4.6% from a year earlier.

The national median existing home sales price reached $417,500 in September, up 1.3% from a year earlier.

Homes also spent a median of 33 days on the market, compared with 31 days in August.

“Higher inventory and lengthening days on market give buyers improved negotiating power,” said Lawrence Yun, NAR’s chief economist, in a statement. “Home sellers need to be realistic about local market conditions, which could require price discounts and other incentives to attract buyers.”

For homebuyers who have been waiting for the right moment to make a move, the latest numbers offer some reasons for optimism.

Homebuyers have more choices this fall

The number of existing homes for sale rose 1.9% from August to September, bringing the total to 1.6 million.

At the current sales pace, it would take 4.8 months to sell all available homes, compared with 4.5 months a year ago.

More housing stock can give homebuyers more options and reduce pressure to make quick decisions. Homes that have been sitting on the market longer may also offer particularly good opportunities to negotiate.

Realtor.com Chief Economist Danielle Hale has also pointed to growing housing stock, even as the pace of new listings has slowed.

“We’re past the worst of the starter-home supply crunch nationwide, but the local picture remains mixed according to the latest Realtor.com report,” said Hale in a statement.

Home price growth varies by region

Home price trends varied considerably by region.

In the South, the median price rose just 0.2% year-over-year to $361,000, according to NAR. In the West, prices declined 0.3% to $613,600.

The Midwest saw prices rise 3.1% to $329,600, while the Northeast recorded the largest increase, up 4.7% to $523,600.

For homebuyers, modest price growth in some regions may create more opportunities to find a property that fits their budget.

First-time homebuyers are finding opportunities

First-time homebuyers accounted for 31% of existing home sales in September, up from 30% in August and a year earlier.

While the increase was modest, it suggests first-time homebuyers are still entering the market despite affordability challenges.

The growing selection of homes may also provide opportunities to consider different neighborhoods, property types, or homes that have been listed longer.

First-time homebuyers may also buy a home without stretching their budgets by exploring low down payment loans and down payment assistance.

How homebuyers can take advantage of the fall market

With more homes available and some properties taking longer to sell, homebuyers may also be able to ask sellers for things like a lower purchase price. This may work for properties listed for several weeks or that have already had a price reduction.

They may also want to request closing cost assistance. Seller concessions may help reduce the amount of cash needed upfront.

A mortgage-rate buydown may help to lower a buyer’s monthly housing payment. Sellers may agree to contribute toward lowering the homebuyer's mortgage rate, either for the first few years of homeownership or permanently.

Homebuyers may also be able to negotiate repairs or credits if problems with the property are discovered after a home inspection.