New rules set to shake up real estate market
The National Association of Realtors (NAR) massive real estate settlement that changes the way homes are bought and sold goes into effect on Saturday, August 17. FOX Business’ Katrina Campins joined LiveNOW from FOX to break down how the new rules could impact the housing market.
The latest market report from Zillow states that competition nationwide “is creeping closer to becoming a buyers’ market” as activity winds down for the winter.
Skylar Olsen, Zillow’s chief economist, said in a statement, “We’re seeing competition among buyers fade, with mortgage rates climbing back toward 7% as we move closer to the usual winter slowdown. Inventory is still slowly building back up and price cuts are still relatively common — persistent buyers may be able to find a deal or negotiate for worthwhile concessions.”
Here’s where the market currently favors buyers
With the current persistently-high home prices and mortgage environment, Zillow said competition among buyers has a lot to do with available inventory. On Wednesday, Zillow shared where buyers currently have an edge in various U.S. housing markets. Each of the 13 major markets that are favorable to buyers are among the top 20 nationwide in terms of inventory recovery compared to pre-pandemic levels, the real estate platform said.
Most prominently, buyers are favored right now overall in Texas, Florida and in the New Orleans metro, Zillow said. It added that Pittsburgh and Louisville joined 11 other major metros in October where buyers have an edge in negotiations. In September, Indianapolis, Nashville and Atlanta became buyers’ markets, Zillow said.
Why the shift in favor of buyers?
Zillow’s report noted how reduced competition also means softer home value appreciation. Monthly drops in home values were found to be the largest in Austin, Dallas, Atlanta, Tampa, and San Antonio.
FAQs
Q: What does the new real estate settlement entail?
A: The National Association of Realtors (NAR) massive real estate settlement that changes the way homes are bought and sold goes into effect on Saturday, August 17.
Q: How will the new rules impact the housing market?
A: The new rules could impact the housing market by shifting the balance of power from sellers to buyers, potentially leading to softer home prices and more negotiating power for buyers.
Q: What regions are currently favoring buyers?
A: According to Zillow, the following regions are currently favoring buyers: Texas, Florida, New Orleans metro, Pittsburgh, Louisville, Indianapolis, Nashville, Atlanta, Austin, Dallas, Tampa, and San Antonio.
Q: What are the implications of the new rules for homebuyers?
A: The new rules could lead to more negotiating power for homebuyers, potentially resulting in softer home prices and more flexible terms.
Q: What are the implications of the new rules for homeowners?
A: The new rules could lead to a shift in the balance of power from sellers to buyers, potentially resulting in softer home prices and more negotiating power for buyers.
