‘Home sales are bottoming out’: Are homebuyers now calling the shots in 2023 housing market?

Source: USA Today — 

Buyers might finally be calling the shots in 2023, as housing inventory while still low, has started to climb up.

Existing-home sales fell for the twelfth straight month in January, with year-over-year sales falling 37%, the biggest decline since 2010, according to a report released Tuesday by National Association of Realtors.

“The current sales activity is even lower than the lockdown month in April 2020,” said NAR Chief Economist Lawrence Yun. “Home sales are bottoming out.”

Prices vary depending on a market’s affordability, with lower-priced regions witnessing modest growth and more expensive regions experiencing declines, he said.

“Inventory remains low, but buyers are beginning to have better negotiating power,” Yun added. “Homes sitting on the market for more than 60 days can be purchased for around 10% less than the original list price.”

The recent rise in inventory has been driven by a pullback in new purchase contracts, and not a surge in new listings, according to Bright MLS Chief Economist Lisa Sturtevant.