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Homebuyers Gain Ground: Sellers Lose Leverage
4 Feb
Summary
- Homebuyers now have more bargaining power than in recent years.
- A surplus of homes for sale benefits buyers with less competition.
- Florida has the most cities with strong buyer market conditions.
The real estate market has shifted, with homebuyers now experiencing increased bargaining power. This is a departure from the competitive landscape of previous years where scarce listings favored sellers. Currently, many cities report a surplus of homes available for sale.
This abundance, coupled with softer demand influenced by elevated mortgage rates and economic uncertainties, has led to properties sitting on the market longer. Consequently, buyers face reduced competition and benefit from a wider selection of choices. A report identified ten metropolitan areas where buyers hold the most leverage, with a significant number located in Florida.
Florida's housing market has seen growing supply meeting reduced demand, attributed to rising housing costs that deter some buyers. New construction continues to add inventory, even as affordability challenges curb buyer activity. This situation has created an environment where buyers in several Florida metros have considerable negotiating power.
