Competition for homes is easing the fastest for buyers in these markets

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.

SEATTLE - In the market for a house? New construction and recovering inventory are helping to tilt more markets in favor of buyers in the South, as well as a few other U.S. regions.

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.

FILE - A "for sale" sign in front of a home in West Islip, New York, on Dec. 13, 2023. (Photo by Steve Pfost/Newsday RM via Getty Images)

"We're seeing competition among buyers fade, with mortgage rates climbing back toward 7% as we move closer to the usual winter slowdown," Skylar Olsen, Zillow’s chief economist, said in a statement.

"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," Olsen added.

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.

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.