Real Estate Market Moves From Seller’s to Buyer’s Favor

As the season changes, prices soften, and homes remain on the market longer, the real estate market transitioned a seller's market to a buyer's market in September.

Realtor.com released their September First Look data Monday, finding that falling prices and more time on the market means that the housing market rests in favor of buyers. This transition means that it is easier for buyers to purchase a home compared to any other time so far this year.

“The spring and summer home-buying seasons were especially tough on potential buyers this year with increasing prices and limited supply,” said Jonathan Smoke, chief economist for Realtor.com.

He added, “Buyers who are open to a fall or winter purchase should find some relief with lower prices and less competition from other buyers. However, year-over-year comparisons show that fall buyers will have it tougher than last year as the housing market continues to show improvement.”

Median list prices continue to fall from July's peak as housing demand is in a seasonally weaker period, the report found. Inventory has also peaked for 2015, which means that buyers will not have as many choices for the rest of the year.

The national median list price is $230,000, down 1 percent over August and up 6 percent year-over-year. Inventory levels stand at 80 days, up 6.7 percent from August, but down 5 percent year-over-year. Realtor.com predicts that listings inventory will end the month 0.5 percent lower than August's numbers.

Realtor.com also ranked the 20 hottest markets in the country according to views per listing and median age of inventory in each market in its Hotness Index.

San Francisco-Oakland-Hayward, California lead the hottest markets in September and August and the state also holds 11 cities on the list due to continued tight supply and a boosted economy.

"Markets in the state have been characterized as having extremely tight supply all year, so frustrated buyers who have not been able to find a home so far remain active, supporting continued strength in sales across much of Northern and Southern California," Realtor.com said.

Dallas-Fort Worth-Arlington, Texas and Denver-Aurora-Lakewood, Colorado held the second and third spots on the list.

“The hottest markets are little changed in September as supply remains tight and demand remains strong,” Smoke commented. “Sellers across all these markets continue to see listings move much more quickly than the rest of the country in September, and the seasonal slow-down is not as strong in these markets.”