Rising mortgage and property prices are squeezing 9 cities in the buyer's market
California realtor Josh Altman joins Stuart Varney to discuss falling rents in Los Angeles, generalizing national trends and the impact of AI-generated wealth driving up prices in San Jose.
Americans in the market for a new home are seeing markets in other parts of the country turn in their favor after years of strong seller's markets.
Realtor.com on Tuesday released the second quarter edition of its market watch report, which analyzes housing conditions at the national and metro-level based on factors such as months of supply, time on the market, price volatility and the average listing for sale.
Of the 100 metro areas included in the analysis, it found that there are 19 metro areas that are in the buyer's market and the top nine are likely to join those ranks by the end of the third quarter.
Nine metro areas emerging as consumer markets are spread across the country and include Atlanta; Bakersfield, California; Birmingham, Alabama; Honolulu; in Houston; Memphis; Riverside, California; San Antonio; and Syracuse, New York.
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9 metro areas are trending in the buyer's market as conditions change the housing sector, Realtor.com found. (Kirk Sides/Houston Chronicle)
That geographic diversity is in stark contrast to the list of 19 metro areas currently on the buyer's market, 18 of which are in the South, with Colorado Springs, Colorado, the exception.
Here's a look at what's driving the improving conditions for homebuyers in five of the nine emerging buyer markets identified in the Realtor.com report:
Atlanta, Georgia
“Our inventory is building, homes are staying on the market longer and sellers are more willing to negotiate price, closing costs and loan amount,” said LeAnne Weathers, a sales agent with eXp in Atlanta, adding that buyers have “more options and less pressure” in this area.
“The biggest local factors driving that change are an increase in housing supply, higher mortgage rates – keeping some buyers on the sidelines – and a generally balanced market.”
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Riverside, California
Daniel Beer, an eXp realty agent in Riverside, said that in the Southern California community market, “buyers are very interested in condos. Inventory levels for condos are much higher than single-family homes and continue to grow.”
“Skyrocketing HOA costs due to government regulations and other factors contributing to increased operating costs are pushing many owners to sell, giving buyers more choices,” Beer said.
Riverside's condo market has favored buyers, Beer said. (Stock)
Syracuse, New York
“Buyers in our market have had less competition in the last six months, allowing more contracts to be accepted for emergency home inspections,” said Ben Gray, eXp realty agent in Syracuse.
“Many buyers are expanding their search criteria to include homes further out of the metro area, with a 45- to 50-minute drive to find an offer,” Gray said.
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Houston, Texas
Thao Nguyen, an eXp real estate agent in Houston, said “buyers finally have options again” in the metroplex, noting data from the Houston Association of Realtors showed single-family inventory rose to 5.2 months.
“That means buyers have more time to compare homes, conduct inspections and negotiate instead of feeling pressured into bidding wars. As a listing agent, I also see many sellers who are willing to contribute to closing costs or mortgage purchase costs to get deals across the line,” added Nguyen.
Houston is one of the trendiest areas in Texas for the buyer's market. (Stock)
San Antonio, Texas
“New construction is where buyers have the strongest negotiating position. Builders offer strong buy-in rates, cover closing costs and offer additional incentives that many sellers can't match,” said Rommy Deais, an eXp realty agent in San Antonio.
Mario Victorica, also a commercial agent with eXp in San Antonio, said the area is “seeing longer days on the market, more price drops and more sellers.”
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“Unless mortgage rates come down significantly and return more buyers to the market, those conditions should continue to favor buyers over the next few months,” added Victorica.
