Are We Heading Toward a Buyer's Market?

Prices keep rising, but buyers have new room to negotiate. So are we heading into a buyer's market? The honest answer surprises most people.

Home prices are still going up, but buyers suddenly have more room to negotiate than they've had in years. Normally those two things don't happen together, so it's left a lot of people scratching their heads, wondering whether to jump in or hold off. So are we heading into a buyer's market, or not? The honest answer isn't quite what most people expect, and it's more useful than a simple yes or no.

So, are we? Not yet, but we're close. Across the country, we're not in a buyer's market. We're somewhere in the middle, pretty balanced, and that's a real change from the last few years, when sellers held all the cards. It's just not the same as buyers taking over.

The typical home is still selling for about 2% more than it did a year ago, not the huge jumps we all got used to. Homes are sitting a little longer, and buyers can breathe again. So things are drifting toward the middle, and in some spots, toward buyers. But if you're holding out for prices to crash so you can grab a steal, that's just not what the numbers are showing.

There's one number that tells you which way a market leans. If you take away just one thing, make it this. It's easy to understand once you know it: if nobody listed another home, how long would it take to sell everything that's for sale right now? A few months, or a lot?

Here's how to read it. Under four months, sellers have the edge. Four to six months, it's pretty even. More than six months, buyers are in charge. Right now, across the country, we're at about 4.6 months, which is exactly why we're balanced, not a buyer's market yet.

"The market you keep hearing about on the news isn't the market you're actually buying or selling in."

But the national number barely tells you anything about your street. Your town, your price range, even your zip code can be leaning a completely different way. Even the group that puts out this data makes the same point, that behind the calm national numbers, there are big differences from one local area to the next. That's the whole ballgame.

Here's what it means for you. It comes down to which side you're on. If you're buying, this works in your favor. You've got more breathing room than you've had in years, more homes to pick from, more time to think, and real room to ask for a better price, repairs, or terms. You don't have to throw out every condition and pile on tens of thousands over asking just to have a shot anymore.

And if you're selling, here's the honest reality, and it's the part that actually protects you. The days of naming any price and getting it are done. Your home will still sell, and sell well, but only if you price it for the market you're actually in, not for what your neighbor got two years ago.

Either way, the answer was never in a national headline. It's in your local numbers, and those are exactly what I keep an eye on for the people I work with.

If you're trying to figure out whether now's the right time to buy or sell in (Area), don't base it on a national headline that has nothing to do with your neighborhood. Let's sit down, look at your actual local numbers together, and figure out what they mean for you. Call or text 312-818-2978, email [email protected], or visit sohailrealestate.com. Let's make this decision with real information, not guesswork.

Realtor, Chicago & North Shore — a top real estate expert serving Chicago, the North Shore suburbs, and the West suburbs of Chicagoland.