Are We Heading Into a Balanced Market? Here's What You Need to Know.

Are We Heading Into a Balanced Market? Here's What You Need to Know.

If you’ve been following the housing market recently (or are just casually scrolling through Zillow for fun like the rest of us), you know it’s been quite the ride for sellers. But with inventory growing, are we finally seeing the scales tip toward a more balanced market? Let’s dive into what that means and how it could impact you.

What Is a Balanced Market?

A balanced market is basically real estate’s version of a unicorn: rare, but magical when it appears. In a balanced market, there’s typically a five-to-seven-month supply of homes for sale, meaning both buyers and sellers are on equal footing. In this sweet spot, home prices tend to stabilize, buyers have more choices, and everyone can breathe a little easier (well, relatively speaking).

For the past few years, sellers have been calling the shots, with bidding wars, waived inspections, and sky-high offers. But with inventory creeping up, are we finally inching toward balance?

Where Are We Now?

To put it simply: we're getting there, but don't pop the confetti just yet. We started this year with a three-month supply of homes on the market. Now, that’s increased to about four months. It may not seem like a huge leap, but in real estate, this is progress. More homes are coming onto the market, giving buyers a few more options (and a few less panic attacks).

But is this the start of a market crash? Not even close! While inventory is growing, it's not at the levels that would create an oversupply. In fact, we’re still a ways off from reaching a true buyer’s market.

What Does This Mean for You?

Let’s break down what these changes mean for both buyers and sellers:

For Buyers:

• More Time to Shop Around: Gone are the days when you had to submit an offer five minutes after seeing a listing. Homes are sitting on the market a bit longer, which gives you more breathing room to find the right one.
• More Negotiation Power: Buyers are gaining a bit more leverage. According to the National Association of Realtors (NAR), fewer buyers are waiving inspections and appraisals. So, feel free to request that home inspection – it’s back in style.
• Less Competition: No more frenzied bidding wars! (Well, mostly.) While competition hasn’t completely disappeared, it’s certainly less intense than it was over the last couple of years. You can expect a more balanced playing field with fewer competing offers.

For Sellers:

• Homes Are Sitting Longer: It’s not that your house won’t sell – it just might not sell in the blink of an eye anymore. Homes are taking a little more time to move off the market, which means you’ll need to be strategic about pricing.
• Fewer Offers: While it’s still technically a seller’s market, don’t expect a dozen offers on the first day. Flexibility is key. Be prepared to negotiate on price or terms to close the deal.
• Inspection Requests Are Back: Buyers have more wiggle room now, so don’t be surprised if they request repairs. Addressing these concerns upfront will help keep your sale moving forward smoothly.

Are We Headed Toward a Balanced Market?

We’re certainly moving in that direction. But just because things are cooling down doesn’t mean we’re in the clear for a full-blown buyer’s market. Inventory is rising, but we’re still not at a place where supply is meeting demand.

As Lawrence Yun, Chief Economist at NAR, points out:

"Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis."

So while it’s still a seller’s market, the frenetic pace is starting to slow, giving buyers a little more power at the negotiation table. Think of it as a seller’s market with the volume turned down from 11 to a more reasonable 7.

How a Real Estate Agent Can Help

Here’s the thing: the national trends give us a big picture, but every market is local. What’s happening in one city might be completely different from what’s happening in your neighborhood. That’s why having a local real estate agent is key. Your agent will have the latest data and local insights to help you navigate the market shift, whether you're looking to buy, sell, or just figure out what’s next.

Obviously if you are in the Great Richmond Metropolitan Area, I've got you!

Reach out so we can discuss our hyper local market patterns! 

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Bottom Line

The market is shifting, but we're not fully balanced yet. Buyers are getting more room to negotiate, while sellers still have the upper hand – just not as overwhelmingly as before. Whether you’re buying or selling, now is the time to keep an eye on market trends and lean on your local real estate agent for expert advice.

Need some help figuring out what this means for your next move?  Let's chat about how you can make the most of this evolving market.

Your Local Expert,

Jacquelyn Waters, REALTOR®