The market for condominiums in the United States is currently undergoing one of the sharpest trend reversals in more than a decade. In September, supply drastically outstripped actual demand, with 123 per cent more sellers than buyers recorded on the market. In purely mathematical terms, there were therefore more than two condominiums for sale for every active prospective buyer.
Historic shift in favour of buyers
Such a pronounced shift in market conditions marks a clear turning point for the entire segment. For many years, the US housing market was characterised by tight inventory and intense bidding competition, which reliably placed negotiating power in the hands of owners. The latest figures for September bring an end to this long-standing imbalance in a remarkable manner.
For prospective purchasers seeking to acquire property, the baseline has fundamentally improved as a result. They now face a wide selection of properties and no longer have to take decisions under direct competitive pressure. The expanded supply significantly strengthens the position of purchasers in forthcoming negotiations.
Altered negotiating environment for property owners
Sellers, by contrast, are confronted with completely altered conditions. In a situation where, mathematically, more than two vendors are competing for a single buyer, previous price expectations can hardly be achieved without difficulty. To secure timely transactions, the willingness to make concessions on price and terms is becoming increasingly essential for owners.
The September data demonstrate the extent of this realignment across the American property sector. Following more than ten years of a distinctly seller-dominated market environment, the balance of power has shifted noticeably; prospective buyers now operate from a negotiating position that has not existed to this extent for a decade.
