Housing Market Shift: Buyers Gain Upper Hand as Bidding Wars Fade

The US housing market is experiencing a significant shift, with buyers gaining a considerable advantage over sellers. Bidding wars, a hallmark of the past five years, are waning across many parts of the country. According to Redfin, the average home recently sold for 1.2% below its listed price. This trend is largely attributed to a growing supply of homes on the market, which is at a five-year high. Simultaneously, demand is softening due to high prices and mortgage rates, causing many potential buyers to delay their purchases. Veronica Dagher, WSJ reporter, notes, "U.S. homes are selling at the slowest pace in almost six years." This slower pace gives buyers more time to negotiate and potentially make offers below the asking price, marking a turning point in the market's dynamics. The increased supply and decreased demand create a more balanced market, offering relief to prospective homebuyers.