How U.S. home sellers are helping buyers make a deal in a stagnant housing market

Homeowners who are trying to sell are losing leverage. Not long ago, a homeowner in America might reasonably wager they could sell their home fairly quickly, and for more than their asking price. That’s unlikely to be a winning bet now.Across the nation, a stagnant housing market is leaving many sellers in limbo, unable to relocate for a new job, buy their next home to accommodate a growing family, or follow through with other major life decisions that necessitate selling their home.Sellers who have the option to pull their listing off the market are generally doing so. Those who don’t are under increased pressure to lower their asking price and also kick in thousands of dollars toward a buyer’s costs, real estate agents say.The trend marks a stark turn from earlier this decade, when sellers often received well above their asking price as home shoppers empowered by rock-bottom mortgage rates fueled a buying frenzy that sent home prices soaring.Now, the market is stalled by surging mortgage rates, the compounding effect from years of rising home prices and an economic outlook dimmed by high inflation. Those factors are putting homeownership out of reach for many buyers while others delay a purchase and hope for more favorable conditions, perhaps in the spring.Sellers easily outnumber buyers and are stuck between uneasy choices: be more aggressive on price cuts and concessions to woo buyers, or hold out longer, even if it means delaying major life plans.“The dynamic has shifted back toward more of what we call buyers’ markets rather than sellers’ markets,” said Mark Fleming, chief economist at First American Financial. “(That) means you might have to reduce your price, you might give a concession to get your home sold, it might have to stay on market longer.”

Source: Fast Company