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Home Sellers Outnumber Buyers by Nearly Half Million in May, Redfin Report Shows

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Home Sellers Outnumber Buyers by Nearly Half Million in May, Redfin Report Shows

US home sellers outnumbered buyers by almost half a million in May, indicating buyers hold the power in the housing market, Redfin said Tuesday.

Sellers exceeded buyers by an estimated 46.9% last month, compared with the largest gap on record of 49.5% in December, according to the online real estate brokerage. The May tally was up from 46.4% a month earlier.

The number of sellers rose 0.4% sequentially to 1.48 million in May, the highest level since 2020. There were about 1.01 million homebuyers in the market last month, "essentially unchanged" from a month ago, Redfin said.

More sellers entered the market in May partly due to an uptick in home buying demand the month prior amid a strong jobs market and temporarily lower mortgage rates. However, house-hunting activity has since slowed down, according to the report.

The brokerage attributed the flattening in home buying demand last month mainly because mortgage rates hit their highest level in almost a year, impacting affordability. House hunters were also affected by macro and geopolitical uncertainty, with the US-Israel war with Iran, increasing gas prices and inflation causing "financial jitters," Redfin said.

"With lots of inventory to choose from, buyers in most of the country can be selective and ask for concessions, while sellers still need to price competitively to stand out," Redfin Senior Economist Asad Khan said.

While buyers have more room to negotiate and demand concessions, "the most desirable homes in popular metro areas -- and popular neighborhoods in all areas -- are still attracting multiple offers," Khan added.

In May, 35 of the 50 most populous US metros tracked by Redfin were buyer's markets, led by areas in the Sun Belt. Nashville, Tennessee; Miami; and Austin are the biggest drivers of this spring's buyer's market. There were only seven seller's markets, with Long Island being the strongest, according to the report.

Separately, a report by the National Association of Realtors showed Tuesday that US existing home sales increased to the highest level since December in May, a move that is expected to bode well for the economy.

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