In today’s evolving real estate landscape, the balance of power between buyers and sellers is constantly shifting. Factors like interest rates, inventory levels, and economic conditions play a critical role in determining which markets favor homebuyers and which remain in the hands of sellers. As of 2024, several cities across the United States and abroad have become buyer-friendly, while others still present challenges for those seeking to purchase homes. Here’s a detailed look at the top 10 housing markets where buyers have the upper hand—and the 10 markets where sellers still dominate.
Top 10 Markets Where Buyers Have the Most Power
1. Boise, Idaho
Once one of the hottest real estate markets during the pandemic, Boise has cooled significantly. High inventory levels and a drop in demand have led to slower sales, giving buyers more negotiation room and the possibility of securing deals below asking price.
2. Phoenix, Arizona
With rising interest rates and an increase in available homes, Phoenix is transitioning into a buyer’s market. Home prices have started to stabilize after a meteoric rise, offering buyers more options and better chances for price reductions.
3. Austin, Texas
Known for its tech boom and rapid growth, Austin’s housing market has been cooling off in recent months. More inventory and fewer bidding wars mean buyers are gaining more leverage when negotiating prices.
4. Sacramento, California
Sacramento has experienced a steady influx of homes coming onto the market, leading to more choices for buyers. With the demand slowing down, sellers are more open to negotiations and offering incentives such as closing cost assistance.
5. Las Vegas, Nevada
Once a seller’s haven, Las Vegas has seen a shift due to rising mortgage rates and declining affordability. Buyers now have more room to negotiate as sellers adjust their expectations in response to longer listing times.
6. Salt Lake City, Utah
As inventory increases and the market cools, Salt Lake City is becoming more buyer-friendly. With more homes available, buyers can be more selective and avoid the frenzied pace of 2021 and 2022.
7. Denver, Colorado
Denver’s housing market has taken a sharp turn in favor of buyers as interest rates rise and demand cools. Price reductions are becoming more common, and buyers are seeing better opportunities for negotiating favorable terms.
8. San Antonio, Texas
With a steady rise in housing supply and a slowdown in demand, San Antonio is giving buyers more negotiating power. The market is less competitive than it was in previous years, providing more options for those looking to purchase a home.
9. Raleigh, North Carolina
Raleigh’s housing market, once fiercely competitive, is cooling down as more inventory becomes available. Buyers are seeing less competition and more price flexibility, leading to better deals across the board.
10. Tampa, Florida
Tampa has seen a slowdown in its housing frenzy, with more homes staying on the market longer. This shift gives buyers more options and the ability to negotiate prices and terms that would have been difficult a year ago.
Top 10 Markets Where Sellers Still Hold the Power
1. San Francisco, California
Despite some market cooling, San Francisco remains one of the most expensive and competitive housing markets in the U.S. Inventory is low, and demand is still high, giving sellers the upper hand. Buyers in this market continue to face stiff competition and high prices.
2. New York City, New York
New York City’s luxury market remains strong, with sellers continuing to command high prices for prime properties. While some outer boroughs may be more favorable for buyers, Manhattan remains a seller’s market with limited inventory and high demand.
3. Seattle, Washington
Seattle’s tech-driven economy keeps the housing market competitive. Despite some cooling, low inventory and consistent demand mean sellers still have the upper hand in negotiations, with homes often selling at or above asking price.
4. Los Angeles, California
Los Angeles continues to see strong demand, particularly in desirable neighborhoods. Limited supply and high demand keep it a seller’s market, with buyers often facing bidding wars and high prices for sought-after properties.
5. Miami, Florida
Miami’s real estate market remains red-hot, driven by international buyers and domestic relocations. With limited housing stock and high demand, sellers continue to call the shots, and homes are often snapped up quickly with little room for negotiation.
6. Boston, Massachusetts
Despite higher interest rates, Boston’s housing market remains competitive, especially in its urban core. Sellers still have the upper hand as demand remains strong, and homes are sold quickly, often for over asking price.
7. Nashville, Tennessee
Nashville’s booming music and tech industries have kept the housing market competitive, with sellers retaining the upper hand. Limited inventory and high demand continue to push prices up, making it a tough market for buyers.
8. Dallas, Texas
Dallas continues to be a seller’s market, with limited inventory and strong demand driven by job growth and population increases. Buyers face competition and rising prices, with little room for negotiation in prime areas.
9. San Diego, California
San Diego’s scenic beauty and strong job market keep demand high. Sellers remain in control as inventory is limited, and properties, especially in desirable neighborhoods, are selling quickly at high prices.
10. Charlotte, North Carolina
While some cities in North Carolina have shifted to favor buyers, Charlotte remains competitive. With strong demand and a relatively low supply of homes, sellers continue to hold significant leverage in negotiations.
The housing market dynamics across these cities are largely influenced by a combination of factors, including mortgage rates, local economic conditions, and housing inventory. Markets that are cooling off typically have more available properties, slower demand growth, and increased price sensitivity, all of which benefit buyers. Conversely, seller-dominated markets continue to see a high demand for limited inventory, driving up prices and giving sellers more power at the negotiating table.
As 2024 unfolds, real estate professionals and buyers alike are keeping a close eye on how these trends will evolve, particularly in light of potential changes in interest rates and economic conditions. For now, buyers in markets like Boise and Phoenix may find more opportunities, while those in places like San Francisco and Miami may still face an uphill battle.
The balance of power in real estate is never static. In 2024, buyers are gaining leverage in some previously hot markets, while other areas remain challenging for those looking to purchase a home. Understanding the dynamics of local markets can help both buyers and sellers make informed decisions as they navigate the ever-changing real estate landscape.
