Money Research Collective’s editorial team solely created this content. Opinions are their own, but compensation and in-depth research determine where and how companies may appear. Many featured companies advertise with us. How we make money.
10 Cities Where Homebuyers Now Have the Advantage Over Sellers
By Sarah Hansen MONEY RESEARCH COLLECTIVE
Sellers still mostly have the upper hand around the U.S., but not for long.
Between rising mortgage rates, high inflation, sky-high real estate prices and an uncertain stock market, it’s really hard to buy a house now.
But after two years of pandemic-fueled price hikes and bidding wars, the balance of power in the housing market is finally shifting towards buyers — especially in western states like California.
That’s according to a new report from home-financing startup Knock, which finds that once-hot destinations like San Francisco, Phoenix and Boise City are cooling off and becoming a lot more buyer-friendly.
Knock uses data on home inventory, sales numbers, time on the market, list prices, sales prices and more to determine which cities are considered “buyer’s markets.” More inventory and lower sales prices mean that buyers have an easier time finding their dream home, while sellers are more likely to accept offers below their list price.
U.S. home sales: Top 10 buyer’s markets
Below are the top 10 metro areas that were most favorable to homebuyers in August, according to Knock. In San Francisco, prices actually fell that month. For the other places in the top 10 buyer’s markets, home prices are rising more slowly than the national average of 8% annually.
- San Francisco-Oakland-Berkeley, California
- Salt Lake City, Utah
- Phoenix-Mesa-Chandler, Arizona
- San Diego-Chula Vista-Carlsbad, California
- San Jose-Sunnyvale-Santa Clara, California
- Los Angeles-Long Beach-Anaheim, California
- Fresno, California
- Las Vegas-Henderson-Paradise, Nevada
- Boise City, Idaho
- New Orleans-Metairie, Louisiana
Most housing markets still favor sellers — for now
Of course, the majority of cities in the U.S. are still more favorable to sellers rather than buyers. In August, Knock found that more than two-thirds of the 100 largest housing markets in the United States were more favorable to sellers.
But given where the economy is headed, the company expects the housing market to equally favor buyers and sellers by August of next year. Others are even more optimistic: 44% of economists and housing market experts polled by Zillow last month said they believe that housing market conditions will shift “decidedly” in favor of buyers in 2023.
Knock also predicts that a handful of hot markets will become more favorable to buyers over the next year, including Portland, Oregon; Jacksonville, Florida; Nashville, Tennessee; and Charlotte, North Carolina.
More from Money:
10 Cities Where Homes Sales Are Most Likely to Collapse
The Fed Says the Housing Market Needs a ‘Correction.’ What Does That Mean?
‘Whiplash’: Mortgage Rates Have Not Been This Volatile Since 1987
Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. She completed her master's degree in business and economic reporting at New York University. Before becoming a journalist, Sarah worked as a paralegal specializing in corporate compliance.