Conquering or lying low in today's market

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Published Date 8/27/2024

In today's housing landscape, buying a home can feel like scaling Mount Everest in flip-flops. Realtor.com's Meghan Malas reports that sky-high asking prices, mortgage rates that make your eyes water, and fierce competition from investors are just a few of the obstacles facing intrepid home seekers. But before you throw in the towel, take heart: not all real estate markets are created equal. Some areas are downright hospitable to buyers, while others... Well, let's just say location still matters even if it looks good at first glance.

Malas and the team at Realtor.com crunched the numbers on the 200 largest metro areas in the U.S. to identify the easiest and hardest places for homebuyers right now.

The top five easiest markets for home shoppers are a slice of Southern comfort, with Florida dominating the list. Coming in at number one is Lubbock, Texas, where the median home list price is a palatable $253,500, and houses typically spend about 55 days on the market. Buyers here are seeing a whopping 80% more homes for sale than a year ago, giving them ample room to negotiate.

Florida takes the remaining four spots in the easy-buying top five. Punta Gorda leads the Sunshine State contingent, with a median list price of $425,000 and a leisurely 90 days on market. Lakeland follows with homes listed at $349,900 and 51 days on market. Crestview and Tampa round out the list, both offering median prices under $500,000 and around 55 days on market.

What makes these markets so buyer-friendly? According to Realtor’s economist Hannah Jones, it's a perfect storm of factors. "Buyers in the easiest markets tend to be relatively slow-moving as supply outpaces demand," Jones explains. "Many of these markets saw prices and competition climb significantly during the early days of the pandemic, but the combination of high prices and climbing mortgage rates tempered demand, leading to building inventory."

Malas says Florida's prominence on this list isn't due only to an influx of new construction, however. The state's condo market softened considerably following the 2021 Surfside collapse and subsequent safety standards, which have led to expensive assessments for many owners. This has contributed to price drops and increased listing levels in coastal Florida markets.

The five hardest markets for homebuyers are clustered in the Northeast and Midwest, where resilience from the pandemic housing boom continues to keep prices high and inventory low.

Erie, Pennsylvania, takes the dubious honor of being the toughest market for buyers. With a median list price of $198,250 and homes flying off the market in just 29 days, Erie saw listing counts fall by 5.6% annually. "Buyers flocked to this affordable market, resulting in falling inventory, a snappy market pace, and significant price growth," Jones notes.

Syracuse and Rochester in New York claim the second and third spots, both with median list prices under $200,000 and homes selling in less than a month. Canton, Ohio, and Kalamazoo, Michigan, complete the top five hardest markets, with median prices of $229,000 and $289,900 respectively, and homes spending less than a month on the market.

It's a classic case of supply and demand, says Malas. These areas have remained attractive due to their relative affordability, which has funneled buyer activity into these markets. As a result, they've seen climbing demand and competition, driving prices higher. Additionally, unlike many markets in the Southwest and Southeast, there's a lack of new construction in these areas, which exacerbates the supply problem.

If you're looking for an easier path to homeownership, consider casting your net towards the South, particularly Florida. Just be prepared for potential special assessments if you're eyeing a condo and the chance of much higher homeowner insurance rates due to a number of natural disaster zones. On the other hand, if you're up for a challenge and have your heart set on the Northeast or Midwest, be ready to act fast and potentially pay a premium.

Remember, whether you're house hunting in a buyer's market or a seller's stronghold, the key is to be prepared, patient, and persistent. After all, finding the right home is less about the ease of the market and more about finding a place that truly feels like home.

Realtor, TBWS

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