Who’s in control? Sellers in the Northeast, Midwest, and Southern California—buyers in Florida and Texas

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Home sellers in the Northeast, Midwest, and Southern California, have the most power, while home buyers in Florida and Texas have the most power.

That’s according to a survey of resale real estate agents in July 2024 by John Burns Research and Consulting.

That finding shouldn’t surprise ResiClub readers—in particular ResiCub PRO members.

Active inventory for sale across much of the Northeast, Midwest, and Southern California remains well below pre-pandemic 2019 levels, while active inventory in pockets of the Sun Belt, particularly in states like Texas and Florida, and the Mountain West has jumped above pre-pandemic levels.

(ResiClub PRO members can find more details on the latest inventory data here)

One factor driving the bifurcation is that some pockets of the Sun Belt and Mountain West experienced even greater home price growth during the Pandemic Housing Boom, which stretched fundamentals too far beyond local incomes. Once pandemic-fueled migration slowed, and rates spiked, it became an issue in places like Austin. Unlike many Sun Belt housing markets, many Northeast and Midwest markets have lower levels of homebuilding. As new supply becomes available in Southwest and Southeast markets, and builders use affordability adjustments like buydowns to move it, it has created an additional cooling effect in the resale market. The Northeast and Midwest don’t have that same level of new supply, so resale/existing homes are pretty much the only game in town.

At the end of last week, a group of real estate agents filed a class action lawsuit against Realtor.com and the National Association of Realtors. The plaintiffs allege that Realtor.com sold agents “fake leads", and that NAR was “complicit” in the scheme. Read more about it here.

ResiClub PRO members (paid tier) got these 3 additional research articles over the past week:

Fed Chair Powell signals the ‘time has come’ to start cutting—where analysts think mortgage rates will go from here

Interactive maps reveal 7 years of home price growth in America

Politicians want to use federal land to build more homes. Would it move the needle?

*Information contained herein, although believed accurate and compiled from credible sources, is not guaranteed. There can be no assurance the business objectives of the Company will be achieved. Investors may lose all or part of their investment and distributions with respect to such investment are not guaranteed. Past performance is not indicative of future returns.