The U.S. housing market is shifting in buyers’ favor as home listings increase, competition eases and sellers become more willing to negotiate, but high mortgage rates and affordability concerns continue to keep prospective buyers on the sidelines, The Washington Post reports.
Rates for 30-year mortgages reached 7.4% this week, the highest level in three years, after inflation driven by the U.S. war in Iran and rising Treasury yields pushed borrowing costs higher. The market now has nearly five months of available housing inventory, its highest level in more than a decade, while September marked the strongest buyer’s market in Redfin’s records. Nationally, sellers outnumbered buyers by 63%.
Although slower price growth, price cuts and seller concessions create opportunities for buyers, years of inflation and pandemic-era home price increases have made monthly payments difficult to afford. Many economists had expected mortgage rates to approach 6% this year, which could have encouraged more purchases.
Instead, buyers are reassessing their budgets as borrowing costs remain elevated, while sellers worry that waiting could mean lower prices in the future. Some homeowners are also moving after delaying plans because they were reluctant to give up their low mortgage rates.
In Nashville, first-time buyers Joe Hiebert and Annie Reagan purchased a home for about $482,000, nearly $20,000 below its asking price, and secured another $23,000 in repair credits after an inspection revealed significant issues. Their experience shows how buyers can negotiate better terms in a less competitive market. However, sellers who resist lowering prices or offering concessions risk struggling to find buyers.
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