– Sellers are reducing prices in cities with surplus housing inventory
– Price cuts are happening faster in Florida and Texas due to high new home construction rates
– Homebuyers are gaining more power as sellers lower prices and builders offer concessions
Sellers in cities with surplus housing inventory are reducing prices, particularly in Florida and Texas where new home construction is high. As sellers lower prices and builders offer concessions, homebuyers are gaining more power in the market. The pandemic housing boom has ended, leading to more price reductions by sellers to attract buyers. In states like Florida and Texas, where new home construction is booming, many metros are seeing price drops and slower median sale price growth.
Homebuyers now have an advantage over sellers as they are in a position to get offers accepted below market value. With competition between builders and sellers intensifying, there is a growing possibility that previously unable buyers may now have the opportunity to purchase a home. In March 2024, new home sales were up significantly compared to the previous year, indicating a potential increase in opportunities for buyers.
Redfin data analyzed 85 US metros to determine which cities had the highest share of sellers reducing list prices. Some of the top metros with price reductions in March may not have seen median sale price declines, but instead, a softening in price growth. Overall, the trend of sellers reducing prices is creating a more favorable market for homebuyers looking to purchase a home.