A study by Knock, a financial technology company for home buying, points out that this year 50 of the 100 largest housing markets in the US are expected to experience falls in inventory, having a limited number of houses to choose from.
According to Knock’s Buyers and Sellers Market Index, customers with some flexibility in terms of when and where to buy may have a better chance of finding a home.
The Index analyzes key housing market metrics to measure the degree to which the nation’s 100 largest markets favor home buyers or sellers.
Knock says the real estate market has changed dramatically in the last 12 months, after few markets favored buyers. As of December 2022, 13 markets were pro-buyers, 43 were neutral, favoring neither buyers nor sellers, and 44 were favoring sellers.
“We expect 2023 to bring more balance to the housing market, which is certainly good news for buyers after three years of intense competition. At the same time, with inventory down nearly 42% since the start of the pandemic and no real incentive for sellers, moving, finding a home they like and can afford will continue to be a challenge,” said the co-founder and Knock CEO Sean Black.
“Buyers with flexibility about where and when to move have an opportunity to find more homes for sale in some of the largest and most desirable housing markets in the country beginning this fall,” Black added.
The firm points out that this year buyers will experience different scenarios depending on their location. While inventory is forecast to rise 17% nationwide, the number of homes available for sale is expected to decline in half of the 100 largest markets.
To find where it might be easier to buy, Knock looked at markets where inventory is forecast to rise the most and when shoppers will have more choice.
The 10 markets where shoppers will see the most choice:
1. Salt Lake City, with a median price of $460,000
2. Dallas, $375,831
3. Denver, $550,000
4. Charlotte, North Carolina, $349,000
5. Memphis, Tennessee, $255.00
6. Las Vegas, $382,000
7. Charleston, South Carolina, $362,500
8. Colorado Springs, Colo., $430,000
9. St. Louis, $230,000
10. New Orleans, $270,424
To see the full report, go here.
Inventory in these markets is expected to increase throughout 2023, peaking in September, October and November. This means there will be more options for buyers with the flexibility to wait until the fall.
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