Housing Market Sees Balance After Years of Ups and Downs

The housing market is finally seeing some balance after years of extreme shortages and rapid price growth. This year, the number of homes for sale increased, price growth slowed down, and homes took longer to sell. These signs show that the market is settling into a more stable rhythm.

What Changed in the Housing Market

The number of homes for sale rose by over 16% compared to last year. This is one of the biggest increases since the pandemic started. More homes for sale helped slow down price growth and gave buyers more options.

The time it took to sell a home also increased nationwide. However, the demand for homes did not disappear. Instead, buyers became more selective about the homes they wanted to buy.

How the Market Cooled Down

The housing market cooled down without crashing. The Market Action Index, which measures the balance between supply and demand, still shows a slight advantage for sellers. However, buyers now have more negotiating power.

The Market Action Index combines pricing trends, inventory levels, and days on market to determine the balance between supply and demand. A higher index value means sellers have more power, while a lower value means buyers have more negotiating power.

Top Markets for Buyers and Sellers

Some cities continued to see very high demand for homes, despite the overall market cooling down. The top markets for buyers and sellers were measured by the Market Action Index.

New England states like Rhode Island, New Hampshire, Massachusetts, and Connecticut had the highest market heat. These states had a high demand for homes and limited supply.

Largest Markets by Transaction Volume

The largest markets in the country continued to see a high volume of home sales. Texas cities stood out for having high transaction volume and large inventory pools.

Priciest Markets

The most expensive markets in the country were still located in coastal and resort areas. However, some affordable markets in the Midwest saw homes selling quickly, with days on market near six weeks or less.

What's Next for the Housing Market

The housing market is expected to continue its stable rhythm. Success in this market will depend on pricing accuracy, local expertise, and understanding where demand remains strong. The market will reward informed buyers and well-prepared sellers.

As the market continues to evolve, it's essential to stay informed about local market trends. By understanding the current state of the market, buyers and sellers can make informed decisions and achieve their goals.