Looking to Buy A Home? This Aspect of the Housing Market Could Be Working in Your Favor | Global News Avenue

Competition in the housing market eased as mortgage rates fell and inventory increased, with more homebuyers taking the upper hand in October.

According to Zillow’s October report, the real estate market in October was more tilted toward buyers, especially in southern markets. The buildup in inventory has significantly reduced competition as the market recovers from historic lows during the pandemic.

The number of listings was down from September, but the number of new listings was up 2% from the same period last year. Active listings increased 18.5% in October compared with the same period last year.

Zillow found that more homes on the market means buyers not only have more choices, but also face less competition when making an offer. With fewer people bidding on each listing, home prices are likely to slow, as evidenced by fewer homes selling above asking price.

However, a full recovery in inventory is still a long way off—the number of homes for sale nationwide is roughly 28% lower than pre-pandemic levels. Some of the problems are long-standing housing shortage. Zillow found that affordability improved in areas where builders were better able to meet housing demand.