Are We Finally in a Buyer's Market? What Smart Buyers Are Doing Right Now

The Market Looks Like It Should Favor Buyers. So Why Does It Not Feel That Way?

If you have been tracking the housing market, the data seems like it should be delivering good news for buyers. Inventory is up considerably from the historic lows of recent years. There are more homes listed than there are motivated buyers in many markets. Properties are taking longer to go under contract than they did during the frenzy of 2020 through 2022.

All of that should add up to falling prices and buyers calling the shots. But that is not quite what is happening, and the gap between what the numbers suggest and what buyers are actually experiencing in the market comes down to one critical factor: seller behavior.

Why Sellers Are Not Playing by the Traditional Rules

In a conventional buyer's market, sellers who need to move their properties respond to lack of buyer interest by reducing prices. Competition among sellers drives values down until the market clears. That mechanism is only partially functioning right now.

A large segment of today's sellers accumulated significant equity during the pandemic-era price surge and are not under any financial pressure to accept less than their target number. As Christopher Phelps explains, many of these homeowners entered the market wanting to sell at a specific price. When offers do not meet that expectation, they pull the listing entirely and wait rather than reduce their asking price publicly.

This behavior produces a market that looks supply-heavy on paper but does not generate the downward price pressure that supply alone would normally create. Homes sit longer. Buyers wait for price drops that may not come. Sellers protect equity they have no intention of surrendering. The standoff can persist for months without resolving in either direction.

Understanding What Kind of Buyer's Market This Actually Is

The most accurate way to describe current conditions is to separate two distinct questions. Is this a buyer's market in terms of headline prices? Not fully. Sellers have largely succeeded in anchoring values close to their listing prices because they are managing their own supply rather than competing aggressively for the available pool of buyers.

Is this a buyer's market in terms of negotiating leverage? Yes, meaningfully so for buyers who know where to look and how to structure an offer. The opportunity is real. It just does not show up in the place most buyers are trained to look for it.

The Concessions That Are Back on the Table

The most valuable advantages available to buyers in today's market are hidden in the terms of a transaction rather than visible in the asking price. Sellers who have been sitting on a listing for 30, 45, or 60 days without generating a contract are increasingly open to deal structures that allow them to hold their list price while still making meaningful concessions to get a transaction closed.

Seller credits toward closing costs can significantly reduce the cash a buyer needs at settlement. A seller-funded rate buydown can lower a buyer's monthly payment for the first few years of the loan or for its entire duration, depending on the structure negotiated. Repair credits and inspection concessions that sellers flatly refused to consider in the heated market of recent years are legitimate asks again on the right properties.

As Christopher Phelps points out, days on market is often a more revealing indicator of seller motivation than the list price itself. A home that has been sitting for 60 days with no price adjustment may be far more negotiable than its unchanged asking price suggests. The seller may be quietly ready to deal even when nothing in the listing reflects that reality.

How to Identify the Right Properties to Target

The key is distinguishing between listings that are sitting because of genuine seller inflexibility and those where the seller is motivated but has not yet signaled it publicly. Not every stale listing is worth pursuing. Some are simply overpriced and will remain so until the seller adjusts their expectations or exits the market entirely.

The properties with real negotiating room tend to share certain characteristics. They came to market at a reasonable price relative to comparable sales and simply have not found a buyer despite adequate exposure. The seller has a real reason to eventually move even if they are not in distress. Signs worth noting include listings that have been withdrawn and relisted, homes where the seller has already relocated, and properties showing a history of small price reductions that have not yet produced a contract. These are the situations where a well-structured offer with strategic terms can accomplish far more than a lowball number ever would.

Prepared Buyers Are the Ones Winning Right Now

The buyers who are successfully navigating this market are not waiting passively for a price collapse that may never arrive. They are showing up with financing in order, a clear picture of what they want, and an approach to offer strategy that goes well beyond the purchase price.

Christopher Phelps works with buyers to find real leverage in today's market and structure offers designed to capture every available advantage in the transaction. Reach out to Christopher Phelps to find out what opportunities may be available to you right now.

Sources

NAR.realtor Realtor.com Zillow.com MortgageNewsDaily.com Forbes.com