Housing News

More Homes, More Time, More Leverage: 19 Markets Where Homebuyers Have the Edge

Tour a home on Saturday. Think it over on Sunday. Make an offer on Monday without discovering that five other homebuyers beat you to it.

That kind of breathing room is returning in parts of the country.

Nationwide, it’s not a buyer’s market just yet. But Realtor.com’s latest Market Clock report found that 19 of the 100 largest metros now favor buyers, while many more are moving in that direction.

Over the past year, 36 of the 100 markets moved in buyers’ direction, compared with only four that moved toward sellers.

“There are a growing number of locations that are in buyer’s market territory,” said Danielle Hale, chief economist at Realtor.com. “As the number of homes for-sale continues to climb and tough-financing conditions keep some buyers on the sidelines, the buyers who remain in the market have more options and less competition.”

Here’s where homebuyers stand to benefit and how to make the most of the changing market.

What a homebuyer’s market can mean for your wallet

More homes for sale can put pressure on sellers to compete for buyers, particularly when a property has been sitting on the market or has already undergone a price cut.

“Put simply, anyone shopping for a home today likely finds themself in a better bargaining position than they would have seen one year prior,” said Hale.

A lower offer isn’t the only way to use that leverage.

Depending on the transaction and type of home loan, buyers may be able to negotiate eligible seller contributions toward closing costs or a mortgage rate buydown. (The latter is when the sellers or the buyers temporarily or permanently pay to lower the mortgage rate.)

Buyers may also ask sellers to make repairs or provide a credit for work that needs to be completed.

Before making an offer, look at how long the home has been listed, whether the asking price has already been reduced, how many comparable homes are available nearby, and what similar properties have sold for recently.

Those details can help determine whether to negotiate aggressively. If it’s been on the market for a while, you may be able to snag a deal.

Where homebuyers have the most leverage

Eighteen of Realtor.com’s 19 buyer’s markets are in the South. Colorado Springs, Colo. was the lone exception in the West. Florida alone accounts for eight of these markets.

The 19 buyer’s markets are:

1. Augusta, Ga.
   Homes for sale: 2,851
   Median list price: $316,056
   
   
2. Baton Rouge, La.
   Homes for sale: 3,207
   Median list price: $299,950
   
   
3. Greenville, S.C.
   Homes for sale: 4,152
   Median list price: $385,000
   
   
4. Jacksonville, Fla.
   Homes for sale: 7,813
   Median list price: $389,973
   
   
5. McAllen, Texas
   Homes for sale: 3,401
   Median list price: $260,000
   
   
6. Nashville, Tenn.
   Homes for sale: 12,192
   Median list price: $539,900
   
   
7. Cape Coral, Fla.
   Homes for sale: 9,834
   Median list price: $390,000
   
   
8. Colorado Springs, Colo.
   Homes for sale: 4,310
   Median list price: $494,475
   
   
9. Columbia, S.C.
   Homes for sale: 2,993
   Median list price: $308,375
   
   
10. Daytona Beach, Fla.
    Homes for sale: 5,503
    Median list price: $379,450
    
    
11. Jackson, Miss.
    Homes for sale: 1,902
    Median list price: $285,125
    
    
12. Lakeland, Fla.
    Homes for sale: 4,759
    Median list price: $329,950
    
    
13. Miami, Fla.
    Homes for sale: 41,524
    Median list price: $495,000
    
    
14. New Orleans, La.
    Homes for sale: 3,967
    Median list price: $297,000
    
    
15. Sarasota, Fla.
    Homes for sale: 7,768
    Median list price: $475,000
    
    
16. Orlando, Fla.
    Homes for sale: 13,771
    Median list price: $419,450
    
    
17. Palm Bay, Fla.
    Homes for sale: 3,625
    Median list price: $375,000
    
    
18. Port St. Lucie, Fla.
    Homes for sale: 4,060
    Median list price: $432,500
    
    
19. Tampa, Fla.
    Homes for sale: 18,292
    Median list price: $397,450

Don’t assume every home is a deal

A buyer’s market doesn’t mean every seller is desperate to negotiate.

“The absolute level of competition still varies pretty widely from market to market,” said Hale. “Some areas [are] seeing buyer-friendly conditions while others are still pretty seller-friendly despite recent buyer-favoring shifts.”

Conditions can differ even within the same metropolitan area. A well-priced home in a sought-after neighborhood may still receive multiple offers. A similar property a few miles away could sit unsold.

Homebuyers should ask their real estate agent about recent comparable sales, days on market, previous price reductions, and competing listings before deciding how much to offer.

Decide what you want from the home seller before you negotiate

More leverage is most useful when you know what you want to do with it.

One homebuyer may prioritize getting the purchase price down. Another may prefer eligible seller contributions toward closing costs. A buyer looking at a property that needs work may want repairs or a credit instead.

Talk with your lender before making an offer as well. Running the numbers can show how a lower purchase price, different down payment, or eligible seller concession could affect your upfront costs and monthly mortgage payment.

A less competitive market may also allow buyers to retain important contract protections rather than feeling pressured to waive contingencies simply to win a bidding war.

And sometimes the most valuable negotiating tool is knowing you have other choices.

If a seller won’t budge and comparable homes are available nearby, you may be able to move on without wondering when another suitable property will appear.