The housing market may be shifting🥀 in favor of🧜 buyers as the number of listings soars. 

A study by real estate information firm Redfin found that the 1.9 million estimated sellers in the U.S. housing market outnumber buyers by nearly half a million. It's a quick reversal in trends, as two years ago buyers outnumbered sellers, the report said.

“The balance of power in the U.S. housing market has shifted toward buyers, but a lot of sellers have yet to see💞 or accept the writing on the wall,” said Redfin Senior Economist Asad Khan. “Many are still holding out hope that their home is 💮the exception and will fetch top dollar.”

It’s the fewest buyers recorded in the survey since 2013, with the ex♈ception of April 2020 data, which was skewed by the onset of the COVID-19 pandemic. It’s also the highest number of sellers since March 2020.

Value of Listings Hits Highest Levels Ever

As listings ꦕpile up amid a dearth of sales, the total value of home listings hit its highest levels ever, a separate Redfin study showed. 

The total value of U.S. unsold housing inventory reached $698 billion in April, according to the study. The value of homes for sale is 20% higher than it was a year ago. However, a significant portion of that value is “stale inventory,” which describes a house that has been for sale longer than 60 days.

“A huge pop of listings hit the market at the start of spring, and there weren’t enough buyers to go around,” said Matt Purdy, a Redfin Premier age♛nt in Denver. “House hunters are only buying if they absolu🔯tely have to, and even serious buyers are backing out of contracts more than they used to.”

One reason that the value of unsold homes is soaring is that the number of listings has reached its highest levels in five years. Another reason is that homes are increasingly expensive, with the 澳洲幸运5官方开奖结果体彩网:median existing home price ♉saꦉle in April hitting $414,000, its hiꦡghest since August 2024.

But that may not last, as economists said homeown꧟ers are likely to lower prices because of the glut of housing inventory.

“We expect rising inventory, weakened demand, and the prevalence of stale supply to push home prices down 1% by the end of this year, which should improve affordability for buyers because incomes are still going up,” said Chen Zha♏o, head of ec𒅌onomics research at Redfin.

Lock-In Effect Easing

One thing driving listings higher is that the 澳洲幸运5官方开奖结果体彩网:mortgage rate “lock-in effect” appears to be easing. 

When mortgage rates 澳洲幸运5官方开奖结果体彩网:surged to around 7% in 2022, many homeowners stayed in their properties because they weren’t willing to give up their lower rates in ord꧃er to move. 

Now, as 澳洲幸运5官方开奖结果体彩网:mortgage rates have 澳洲幸运5官方开奖结果体彩网:hovered between 6% and 7% for more than two years, some potential sellers aren’t waiting for lower borrowing costs. That’s because life scenarios like new jobs and growing f♔amilies are forcing some homeowners to ꦫsell, regardless of the rate.

“I would say that the worst of the lock-in effect is over,” said National Association of Realtors Chief Economist Lawrence Yun. “The lock-in effect was very strong, say, ꧙one or two years ago. Now, with the𒊎 passage of time, some people are, in a sense, forced to give up their low interest rate because of life-changing events. Therefore, we should anticipate a little more inventory, even without any changes in mortgage rates.”

Some data shows that trend. A February Redfin study showed that more than 17% of homeowners had mortgages above 6%, compared with just a little more than 12% a year earlier.