Pandemic housing bubble unwinds hard with sellers flooding market in former hot spots

by

FOMO lemmings who bought at the peak are getting absolutely wrecked with huge losses. Sellers flooding the market in those COVID hot spots means buyers finally have leverage after years of insanity. The luxury home haircut shows how bad the unwind is getting even for expensive properties. More listings and fewer bidders mean real negotiation power and lower prices coming soon. This is the correction everyone knew was coming after the bubble.

The losses just keep coming. Grimsby. Bought for $3M. Sold for $2.2M. That's an $800K haircut on a luxury home purchased before the peak. How many more are still waiting to hit the market?
byu/Boo_Randy_Revival inHouseBuyers

Home sellers outnumber buyers 2 to 1 in these COVID hotspots

The pandemic housing frenzy is officially dead — and buyers finally have the upper hand.

Nearly 70% of big US cities have turned into buyers’ markets, led by a massive wave of excess housing inventory in Sun Belt hotspots like Miami, Houston and Austin, according to June Redfin data, where homebuying demand has been slow post-pandemic.

There were nearly 500,000, or 48.5%, more home sellers than buyers in the US in June than the month prior.

“The biggest hurdle for Americans looking to buy a home is affordability, but those with the budget to move now — even in the face of record-high home prices and stubbornly high mortgage rates — have the power,” said Asad Khan, a senior economist at Redfin. “In most of the country, there are more homes to choose from, fewer bidding wars and more room to negotiate on price, closing costs and repairs.”

In a few select markets — specifically Miami, Nashville and parts of Texas — sellers outnumber buyers by a staggering two-to-one margin. According to the report, the seller surplus reached a staggering 140% in Miami, 129% in Nashville, 124% in Houston, 117% in San Antonio and 101% in Austin.