More than 1.1 million homes are now for sale across the United States, giving buyers lots of choice and a strong negotiation position.
Inventory of homes for sale has now risen for the 23rd consecutive month, according to the latest data from aggregator Realtor.com.
There are now 17% more homes for sale than this time last year.
The data also shows that sellers are having to come to the negotiating table to get their deals over the line.
Almost 20% of all homes were sold in September after the buyer achieved a discount, according to the Realtor.com report.
The mid-tier segment – homes priced between $350,000 and $500,000 – was the most under pressure with 21.6% of all deals made after the seller shaved down the asking price. This compares with the national average of 19.9%.
Pressure on sellers may now ease following the decision of the Federal Reserve to reduce its target interest rate to 3.75%-4% – a cut of 0.25%.
The reduction has come despite US inflation rising to 3% for the first time since January.
Realtor.com's September Housing Trends report says the luxury segment of the market is the least affected by discounts. Only 13% of deals for homes priced at more than $1 million required a discount.
Chief Economist at Realtor.com, Danielle Hale, said: “September's trends show a housing market increasingly tilting in buyers' favor, with a rising inventory of homes for sale, longer days on market and more competitive pricing.”
Metros areas where discounting is most prevalent are Denver (30.7%), Portland (30.2%) and Indianapolis (29.7%).
Year-over-year, the cities with the greatest increase in homes for sale are Denver (+59.6%), San Antonio (+49.6%) and Austin (+46.9%).
The report says cities where supply has fallen most in the past 12 months are Hartford (-74.8%), Chicago (-56.9%), Providence (-51.7%).
Here are six tips to selling in the current market:
Price realistically – Don't overprice. Work with your agent to price the property based on recent comparable sales (not asking prices). A lower, more realistic initial price can generate more interest and potentially lead to multiple offers and a higher final sale price.
Five-star presentation – Ensure your home is immaculate, which includes deep cleaning, decluttering, depersonalizing and making minor repairs. Buyers often seek reasons to rule properties out because they have so much choice.
Stage your home – Focus on enhancing your curb appeal as the first impression is critical. Tidy up the yard, paint the front door and ensure the entrance looks welcoming. Also, consider professional staging or rearranging furniture to make spaces look larger, lighter and more appealing.
Market aggressively – Invest in high-quality marketing. You need your online listing to pop. Invest in professional photography, and virtual tours or video walkthroughs. Detailed descriptions are essential, plus a floorplan.
Buyer focus – Be flexible with inspection times and accept private showings. Be prepared to negotiate on your buyer's preferred closing date and any request for inclusions. Offering certain items of furniture can get the deal done.
Pick your partner – In this environment, your choice of agent is critical. Work with an agent who has a track record of sales in a buyer's market, offers a compelling strategy and can demonstrate strong negotiation skills. I would be delighted to assist you.
