C
ompetition for buying homes is easing at a faster pace in Louisiana, Florida, and Texas, according to Zillow's latest market report. Nationwide, homebuyers are finding more leverage in negotiations as competition wanes with rising mortgage rates and the typical winter cooldown.

    "We're seeing buyer competition decline as inventory slowly recovers from pandemic-era lows," said Skylar Olsen, Zillow's chief economist. "Price cuts remain relatively common, offering buyers opportunities to secure deals or negotiate concessions."

    While regional trends vary, Southern states are experiencing fewer winter disruptions, allowing housing activity to remain steadier. Inventory recovery is also tipping the scales in favor of buyers, particularly in areas like Texas and Florida.

    Buyers now have an edge in negotiations in 13 major markets, including Pittsburgh and Louisville, which joined cities like Indianapolis and Nashville that transitioned to buyer's markets in September. These markets rank among the top 20 nationwide in inventory recovery compared to pre-pandemic levels.

    Reduced competition is contributing to slower home value appreciation, with monthly declines recorded in Austin, Dallas, Atlanta, Tampa, and San Antonio. Nationwide, inventory levels are still recovering from pandemic-era lows, but have improved significantly, with a 28% deficit below pre-pandemic norms for this time of year.

    New construction is playing a key role in balancing the market, particularly in areas where builders have met demand effectively, stabilizing home prices and rent growth. However, mortgage rate volatility remains a challenge, with rates expected to remain volatile in the coming months.