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A “for sale by owner” sign stands outside a home in LaSalle, Illinois, U.S., on Friday, June 7, 2013. (Credit: Daniel Acker/Bloomberg via Getty Images)
TEXAS – It’s the strongest buyer’s market for potential homeowners in nearly two decades, and a Texas city sits at the top of the list.
Four other major Texas cities are considered strong buyer’s markets, according to the new study by Redfin.Â
Texas tops buyer’s market
By the numbers:
San Antonio is considered the strongest buyer’s market in the nation, the study found. There are 117.3 percent more home sellers than buyers in the city. San Antonio has a median sale price of $303,896.
Not far behind is Austin, with 114.7 percent more sellers than buyers. Austin has a median sale price of $449,647.
Next is Dallas, with 98.3 percent more sellers than buyers. Dallas has a median sale price of $407,712.Â
Trailing Dallas is Fort Worth, with 77.3 percent more sellers than buyers. Fort Worth has a median sale price of $356,920.
Finally, Houston comes in at 43.1 percent more sellers than buyers. The median sale price in Houston is $335,902.Â
What is a buyer’s market?
Why you should care:
Redfin defines a buyer’s market as one where there are more than 10 percent more sellers than buyers. Conversely, a seller’s market has over 10 percent more buyers than sellers.Â
Texas remains among the states building the most homes, Redfin says, which may contribute to the strength of the buyer’s market. No Texas cities were included in the seller’s market list.
Buyers generally have more negotiation power in a buyer’s market. Redfin finds this is the strongest buyer’s market since the years following the 2008 financial crisis. In October, it’s estimated there were 36.8 percent more sellers than buyers in the U.S.
A market with plus or minus 10 percent is a balanced market. San Francisco now makes the list of balanced markets, Redfin found.
What they’re saying:
“There’s a shortage of both first-time buyers and repeat buyers because mortgage rates and home prices have gone up so much in recent years,” said Matt Purdy, a Redfin Premier real estate agent in the Denver area. “At the same time, there are homeowners who need to sell because they have to relocate for a job or are getting divorced. Sellers want top dollar because they’re focused on recouping their investment, but buyers are focused on having a low monthly payment, so there’s this gap in expectations that’s making it hard for buyers and sellers to see eye to eye. Oftentimes, the buyer ends up winning the negotiation because they have options—there are a lot of sellers who are desperate to make a deal happen.”
The Source: Information in this article came from Redfin.