Housing market conditions are largely determined by the balance of homes for sale and interested home buyers. When demand for homes outpaces the supply of homes, prices and competition increase. That’s been the story in recent years, as inventory hit historic lows while buyer demand soared. But, according to a new analysis from the National Association of Realtors’ consumer website, the dynamic may be changing, and it could benefit buyers. Danielle Hale, the website’s chief economist, says a combination of newly listed homes and home seller price cuts may be a sign. “While rates remain elevated, we are beginning to see green shoots in the market as sellers grow tired of waiting for significant changes in interest and mortgage rates,” Hale said. “If these trends continue for the next few months, we could see a market that is entering into more balanced terrain, with rising inventory and a potential future slowdown in price growth. While the market does not look like it did before the pandemic, we are moving away from the ultrahigh demand, low inventory period we saw in 2021 and 2022.” (source)
