Buyers Gaining an Edge in the Housing Market: Insights from Real Estate Experts

Great news for homebuyers: the housing market is starting to tilt in your favor! Compass cofounder and CEO Robert Reffkin recently shared some insights that highlight how the market dynamics are changing.

Reffkin told CNBC that currently, 30% of the housing inventory has seen price drops, a level not seen in the past decade. Additionally, there’s been a 16% increase in available homes. “It’s a different environment. We are now seeing more sellers than buyers,” he said.

The trend is especially noticeable in the South, where earlier price surges are now leading to more significant price cuts. Florida, in particular, has been affected by rising home insurance costs, which have jumped by 40% year over year, putting extra pressure on asking prices.

“Sellers need to be mindful of how buyers are reacting to high prices,” Reffkin advised. “If your home is well priced, it will sell quickly. But if not, it will sit on the market, leading to price drops. When that happens, buyers sense an opportunity, and it could hurt you even more.”

Interestingly, high-end buyers are feeling more confident due to recent stock market gains. “You don’t need lower mortgage rates if your stock portfolio is at an all-time high,” Reffkin noted.

A recent report highlighted that Texas and Florida are now among the best places for buyers, according to Zillow’s market heat index. This index considers factors like the share of homes with accepted offers within 21 days, the share of homes with price cuts, and engagement with listings on Zillow’s platform.

Zillow mentioned, “Would-be buyers who witnessed intense competition in sunny Texas and Florida markets earlier on in the pandemic aren’t seeing such a frenzy now.”

Redfin CEO Glenn Kelman also shared an optimistic outlook for the housing market in the latter half of 2024. However, he cautioned that this depends on potential rate cuts from the Federal Reserve. Without these cuts, sales might slow down or even decline. For now, he suggests that while it’s not time to celebrate with champagne, the market is looking a bit better, and that’s something worth noting.

This story originally appeared on Fortune.com.