Housing expert: “Sellers must negotiate”

It’s the same housing story across the U.S., according to real estate agents in three U.S. cities. Sellers are offering more concessions as buyer demand wanes and listings remain on the market.
“Gone are the days of ‘Hey, my neighbor across the street just sold last year for $100,000 above list price.’ Sellers absolutely have to negotiate,” Dan O’Brien, an agent with Trueblood Real Estate covering Indianapolis, told Yahoo Finance. (Video above).
And that's good news for buyers.
“Now, we actually have buyers protected by fortuitous circumstances, like inspection and appraisal,” O’Brien said, “when a lot of times those were out the window during the madness of the COVID market.”
Here's what's happening in Denver, Indianapolis and Charlotte, North Carolina, according to these agents.

Denver

Denver housing slowed in December. The median sales price fell 4% year-over-year to $528,250. Amid the cooling, buyers are taking their time buying homes and seeking incentives. The sharp turnaround came after the Denver market had surged 30% since March 2020.
“Right now, sellers are working to help with rising interest rates. So they’re offering a 2-1 buyout,” said Kathy Casey, a Coldwell Banker residential broker in Denver. “What that means is that for the first two years, your interest rate will be lower than what the market rate is right now.”
However, the market is showing potential change.
“So we’re already starting to see signs of the spring market, that it could be a heated market,” Casey said. “So go out there, find a home that you like and love.”

Indianapolis

Similarly, housing activity in Indianapolis declined toward the end of 2022. Homes remained on the market for an average of 22 days in December, compared to an average of just four days in May 2022.
“Buyer demand has definitely slowed with the rise in interest rates,” O’Brien said. “Things are going to drag on in the market for a little while longer.”
The increase in days on market is partly due to an increase in home supply. There were nearly 1,600 more active listings in the city in December, up 26% year-over-year, according to Redfin.
“To put it in perspective, we’ve just now broken the number it was at before the coronavirus,” O’Brien said. But “we’re still low on inventory.”
However, buyers are still struggling with high affordability concerns as mortgage rates remain significantly higher than a year ago. Banks and sellers are stepping in to help.
“Different banks are offering different types of mortgage products to help with the increased mortgage interest,” O’Brien said, “and sellers are offering 2-1 purchase credits, or just generally, to lower the interest rate to make it more affordable for the buyer.”

Charlotte

Like other markets, Charlotte sellers are offering incentives to close deals, especially paying for closing costs and buying down interest, according to Sir Ashley Harrison, a real estate broker in the Harrison Group with Fathom Realty in Charlotte. However, pricing hasn’t moved that much.
“We’re seeing more inventory, but fewer new listings,” Harrison said. “And we’re getting a lot more seller relief, but pricing remains very sticky.”
The number of homes sold in Charlotte has fallen over the past six months. Just 823 homes were on the market in December, a 42% drop from a year ago. And homes stayed on the market for an average of 48 days in December, more than double the number of days in May 2022.
“Buyer demand has declined,” Harrison said.