U
S home listing prices have reached an all-time high, signaling a potential shift towards a buyers' market. According to Redfin's recent report, the value of homes in the US rose 20.3% from last year to a record $698 billion. This increase is driven by growing inventory, slowing demand, and rising home-sale prices.

    Industry experts predict that the market will shift over the next couple of months as the number of sellers outpaces buyers. Redfin's chief economist, Daryl Fairweather, notes that high listing prices are causing homes to sit on the market, while buyers are backing off due to unaffordable prices and rising mortgage rates, insurance costs, and property taxes.

    Fairweather suggests that homes will need to be marked down in price or priced more conservatively to attract offers. Otherwise, sellers may have to delist their properties or keep them off the market. She also notes that homeowners who bought during a previous era of low interest rates are now facing higher mortgage rates, making it harder for them to sell.

    The number of homes on the market has risen 16.7% year-over-year in April, reaching its highest level in five years. This is partly due to the easing of the mortgage rate lock-in effect and homeowners trying to cash out amid economic uncertainty. As a result, sellers will need to adapt their strategies to attract buyers, including pricing realistically and upgrading presentation.

    For buyers, this shift provides an opportunity to negotiate better terms. According to Noel Roberts, founder of real estate firm Pending, "In some submarkets, this may be the first real opportunity in years to secure a home with favorable terms."