Each quarter, ResiClub surveys real estate agents across the country about what they're actually seeing with their clients. This quarter, 208 agents responded, and almost half of them have been in the business for 15 years or longer.

The consensus was pretty clear. That buyers have more negotiating power than they've had in years, and sellers are starting to feel it. In fact, one of the largest homebuilders in the country said almost the exact same thing on a call with investors last month.

Today we're covering what both I and many other agents across the country are seeing, what to expect over the next year, and how it all applies here in Utah.

74% of agents say negotiating power in their local market has shifted toward buyers over the past year. That's down a bit from 82% at the end of last year, so the trend is slowing down, but majority of agents are still seeing their markets favor buyers.

Honestly, I kind of feel like a broken record at this point. But simply put, there are fewer buyers than sellers right now, and more motivated sellers. And to back it up with data, 63% of agents say they're seeing fewer buyers than a year ago. At the same time, 49% say sellers are more eager to get a deal done than they were 12 months ago. Fewer sellers are willing to sit and wait for the market to come back to them.

Prices: Only 30% of agents expect home prices in their area to rise over the next 12 months, down from 39% at the end of last year. Another 30% expect slight declines, and 33% expect prices to stay flat. Just 1% expect prices to jump 5% or more.

In plain terms, most agents expect prices to be about where they are now a year from today. That means no crash and no boom.

Mortgage rates: At the end of last year, most agents expected rates to settle in the low 6s. That's changed. The biggest group now expects rates to land in the upper 6% range over the next year, and far more agents than before expect rates to stay above 7%.

KB Home, one of the largest homebuilders in the country, reported its quarterly results on September 22nd. Its leadership said the market has gotten weaker since June, pointing to higher mortgage rates and more homes for sale.

Their chairman said resale homes, which are their biggest competition, are now on the market at the highest levels in a decade, consistent with what we’re seeing here in Utah, which I covered extensively last week. He also said prices are starting to slip in more of the areas where they build.

Their CEO had an interesting take on sellers. He said many homes have been listed at what he called a "make me move" price. That's a price set above what the market supports, by an owner who will only sell if they get top dollar. Now he's seeing those sellers get less patient and either lower their price or offer buyers incentives.

KB Home is doing the same with its own homes. Its average sales price is down 7% from its 2022 peak, mostly from straight price cuts.

KB Home doesn't build in Utah, but we’re seeing the same thing among the largest builders here as well. As I shared last week, inventory across the state is the highest it's been in at least a decade.

The good news for homeowners is that Utah prices are holding up much better than places like Texas and Florida. Prices here are still slightly up over the past year. But it’s impossible to know what will happen over the coming year. With more homes on the market, buyers can afford to be picky, and the homes that are priced correctly are the ones getting offers.

This is one of the best windows to negotiate in years. With more homes to choose from and more motivated sellers, asking for seller-paid closing costs, a rate buydown, or a price reduction isn't a long shot anymore. In a lot of cases, sellers expect it.

If you're waiting for rates to drop before you buy, keep in mind that most agents now expect rates to stay in the upper 6s or higher over the next year. Waiting could cost you the negotiating power you have today without saving you much on your rate.

New construction is worth a look if you’re trying to get the best deal. But if you’re looking for a home with a large yard, in an established area, I’m seeing great deals on existing homes as well.

Want to know how much negotiating room you have in your price range? Reply and I'll pull recent sales in the areas you're watching so you can see what buyers are actually paying compared to asking prices.

The "make me move" price doesn't work in this market. Buyers have more options than they've had in years, and they compare every home in your area before deciding which ones to see. If your price is above what's actually selling, they move on to the next one.

That doesn't mean you have to give your home away. It just means pricing off what's selling right now, not what your neighbor got a couple years, or even months ago. It also means being open to incentives like a rate buydown, which can bring in buyers who are feeling the pinch of higher rates.

If your home was listed this year and didn't sell, you're not alone. It usually comes down to price, presentation, or marketing. Helping homes that didn't sell the first time is a big part of what I do.

Thinking about selling in the next six months? Reply and I'll put together a pricing strategy based on what's selling near you right now.

Here to serve,

P.S. Curious what your home is worth in today's market? Reply with your address and I'll send you a free, no-pressure market analysis.