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You’ve probably noticed that the housing market is changing. Is it, however, a “buyer’s market” just yet? With buyer activity picking up as inventory rises and prices and interest rates drop, buyers can finally bid farewell to waiting lists and bidding wars and hello to more freedom.

The housing market is fundamentally a local business. While certain presumptions about the housing market can be made, such as “rates are rising,” when it comes to favoring buyers, sellers, or neither (in the scenario of a balanced market), it is dependent on the distinct factors influencing supply and demand of any particular region.

According to Knock’s inaugural Buyer-Seller Market Index, the housing market in the United States began to shift toward buyers in July for the very first time since 2017. The new index examines key housing market metrics to determine whether the country’s 100 biggest markets favor home buyers or sellers. Based on the index, all 100 markets favored sellers during the first five months of 2022, with April being the best month to sell a home since the start of the index’s data series in early 2017. The market fell below historic peaks for sellers for the first time in June, with July denoting a major shift in market dynamics.

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With the overall U.S. housing market projected to equally favor buyers and sellers by June 2023,home shoppers may see the most favorable conditions in recent history. At the same time, that doesn’t mean a return to 2008. Sellers, who have already seen substantial equity gains in recent years, will still hold the advantage in many markets.

– Knock Co-Founder and CEO Sean Black

The transition Starts

In July, less than 150,000 homes were sold across the country’s 100 largest housing markets, the lowest monthly sales figure in a year and down 50.7% since July 2021. The national housing inventory increased by 6.8%, the median days on market increased by 27.3%, and the median sale price including all housing types increased by 9.6%.

Despite the fact that the majority of markets are considered sellers’ markets, nearly all of the 100 largest housing markets have shifted toward favoring buyers. As more markets begin to favor buyers, median sales prices are predicted to fall, but only to a point. Following a drop in January 2023, the median-priced houses in the United States are expected to rise to $427,000 by June 2023. Then again, there is an upside for buyers with larger budgets and more leeway: with fewer buyers on the market and a greater supply of housing, they will get a lot more bargaining power with sellers than they did previously.

This year, the market is still relatively competitive, but it has shifted out of the most intense conditions that we saw in 2021 and in a buyer-friendly direction,”

– Danielle Hale, Chief Economist at

The Bottom Line:

A healthy neutral market benefits everyone, regardless of whether you’re a seller, buyer, or agent. We are approaching pre-pandemic levels, which means sellers are more inclined to negotiate, buyers have more inventory to select from, and prices are leveling off. If buyers have been hesitant to enter the market over the last two years, now is the best time to take advantage of buyer-friendly possibilities.

What To Do:

Did you find this read interesting? Need expert and white glove advice? Get in touch for local and professional real estate advice in your neighborhood. Fill in the form above to speak with a real estate professional that specializes in this topic and more!

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