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Is the Housing Market Finally Balancing Out? What This Means for You

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Arnold Consulting, Inc. ,

As a real estate professional, staying ahead of market trends is key to serving your clients effectively. For years, sellers have held the upper hand, with low inventory fueling bidding wars and skyrocketing prices. But now, the landscape is shifting. Inventory is increasing in many areas, giving buyers more options and more negotiating power.

So, what does this mean for your business? Let’s break it down.

Understanding Market Shifts: Buyer’s vs. Seller’s Market The balance of power in real estate is dictated by supply and demand. Here’s a quick refresher:

  • Seller’s Market: When demand outweighs supply, sellers dictate the terms. This means higher prices, multiple offers, and homes selling over asking price.

  • Buyer’s Market: When supply exceeds demand, buyers gain control. Sellers must be more flexible, offering concessions and negotiating to get deals done.

Keeping a pulse on this balance allows you to set the right expectations for your clients and position them for success—whether they’re buying or selling.

Where Does the Market Stand Now? While many areas remain seller-friendly, others are seeing a shift. Rising inventory is creating pockets of

opportunity for buyers who’ve been on the sidelines. As Lance Lambert, Co-Founder of ResiClub, notes:

"Among the nation’s 200 largest metro area housing markets, 41 markets ended January 2025 with more active homes for sale than they had in pre-pandemic January 2019. These are the places where homebuyers will be able to find the most leverage or market balance in 2025."

This means that in some regions, buyers are gaining an advantage they haven’t had in years. As an agent, understanding where your local market falls on this spectrum will be crucial in guiding your clients effectively.

How to Adapt and Stay Competitive Your ability to navigate shifting market dynamics will set you apart. Here’s how to position yourself as the go-to expert:

  • For Sellers: Educate them on pricing realistically and leveraging incentives to attract serious buyers.

  • For Buyers: Teach them how to take advantage of new inventory without waiting too long, as the best deals still move quickly.

  • For Yourself: Stay informed, analyze local trends, and be proactive in communicating with your clients.

The Bottom Line Yes, inventory is rising, but whether it’s truly balancing out depends on your specific market. The key takeaway? Real estate success isn’t just about timing—it’s about strategy. That’s where you come in.

Want to dive deeper into how these shifts impact your clients? Let’s connect and strategize together. The more informed you are, the better you can serve your buyers and sellers in any market.

 

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