Has The Housing Market Finally Found Balance?

The housing market favored sellers for years. With the number of available homes for sale lower than normal and the number of interested home buyers high, sellers held all the negotiating power. This dynamic only intensified during the pandemic when mortgage rates fell to historic lows and demand, bidding wars, and home prices spiked. But now, according to a new analysis, there’s evidence that the housing market may have finally reached balance. Over the past couple of years, demand has slowed and the number of available homes for sale has rebounded. In fact, there are more homes available for sale right now than there have been at any time since 2019. That’s good news for buyers, as it’s given them back some negotiating power and caused home sellers to adjust their prices. But challenges persist. Affordability continues to be an obstacle and inventory, while greatly improved, is still 21 percent lower compared to pre-pandemic averages for the month of June.