Most housing markets still favor sellers despite increasing buyer-friendliness, especially in more affordable markets in the South and Midwest.
Knock’s Buyer-Seller Market Index found that 71 of America’s 100 largest housing markets still remain seller’s markets.
“Although the general consensus is the housing market is undergoing a much-needed reset, which is welcome news to many home shoppers who will have more choices and less competition for the foreseeable future, not all markets are seeing the same trends,” said Knock Co-Founder and CEO Sean Black.
“In reality, there’s a great housing divide taking place in the U.S., especially in the East and South, where despite a slowdown in sales and slower home price growth, many markets continue to favor sellers.”
Fayetteville, North Carolina, was ranked number one for a second month.
Second place went to Akron, Ohio, followed by Winston-Salem, North Carolina; Cleveland; Syracuse, New York; Rochester, New York; Hartford, Connecticut; Greensboro, North Carolina; El Paso, Texas, and Columbia, South Carolina.
These markets have one big thing in common: they are relatively affordable compared to other cities.
In 8 of these 10, the median home price was $250,000 or less, much lower than the median home price of $390,000. And the majority saw homes snapped up quickly, below the national average of 18 days on the market.
Fayetteville’s median sale price is $225,000 and homes there sold in an average of seven days in August, making it one of the cheapest and hottest markets in the country. It also saw a 56% bump in home sales YOY while sales fell nationally.
Knock considers the other 22 to be neutral markets, offering no particular advantage either way.
It is expected that many markets will turn in favor of buyers by 2023.
A recent Zillow survey of housing experts said they expect a buyer’s market by the end of this year.
“After the frantic rush for real estate over the past two years, buyers are finally seeing a calmer market. Those still able to afford homeownership are quickly regaining lost leverage, but this shift to a more balanced market is still in its early stages,” said Nicole Bachaud, senior economist at Zillow.
Knock’s response is slightly more tempered, predicting a buyer’s market around August 2023.
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