Buyers have the upper hand when negotiating buying property in cities across the Southeast of the United States of America, according to analysis from real estate marketplace Zillow.
In the following markets buyers are said to have the upper hand in negotiations: Louisville, KY; Nashville, TN; Memphis, TN; San Antonio, TX; New Orleans, LA; Jacksonville, FL; Tampa, FL; Miami; FL.
Zillow predicted this trend to spread to the Southwest in 2025, owing to new supply hitting the market.
A spokesperson from Zillow said: “Sellers will feel the heat of competition as buyers will have more homes to choose from.”
However they added: “If mortgage rates fall more than expected, that dims the prospect that buyers markets will spread west.
“It is anticipated that a significant mortgage rate dip would bring more buyers than sellers back to the market, increasing competition and tilting negotiating power in favour of sellers.”
The strongest sellers’ market in the US is the ever-competitive New York City, with San Jose in California deemed another where sellers tend to have plenty of choice when it comes to finding a buyer.
Zillow predicted relatively modest house price growth of 2.6% in 2025, owing to the supply of stock.
The downside for buyers is typical mortgage rates in the US have risen to nearly 7%. Some up and downs are expected in 2025.
Skylar Olsen, Zillow chief economist, said: “Buying a home in 2024 was surprisingly competitive given how high the affordability hurdle became. More inventory should shake loose in 2025, giving buyers a bit more room to breathe.
“Americans are adapting to sky-high costs by embracing coziness, a term that for so long has been a thinly veiled critique in real estate lingo. Many are also viewing renting as a longer-term lifestyle.
“A construction boom has eased pressure on rent prices, putting rent affordability on track to improve next year — that is, as long as wages continue to grow.”