America's housing market is showing signs of a significant shift, with buyers increasingly gaining leverage in several metropolitan areas, particularly in the South. Factors such as rising inventory and a decrease in bidding wars are contributing to a cooling market, moving away from the intense seller advantage seen during the pandemic.

Realtor.com data indicates that 19 of the 100 largest U.S. metros are now considered buyer's markets, with 18 of these located in Southern states. Florida metros, including Miami, Tampa, and Orlando, are prominently featured, alongside cities like Augusta, Baton Rouge, and Nashville. Colorado Springs is the only metro outside the South currently identified as a buyer's market.

"A handful of Southern markets favor buyers," said Hannah Jones, Senior Economist at Realtor.com. "Florida metros, including Miami, Tampa, and Orlando, are currently classified as late buyers markets, meaning shoppers there still have more for-sale options and room to negotiate than in more balanced or seller-favoring areas."

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In South Florida, the condo market has become a particularly favorable area for buyers, according to real estate expert Jeff Lichtenstein. Uncertainty following the 2021 collapse of Champlain Towers South in Surfside led to new legislation requiring engineering inspections and safety reviews for older condo buildings. This resulted in a wave of special assessments and concerns about the true cost of ownership, pushing more inventory onto the market and giving buyers more leverage.

IMAGE6 South Florida’s condo market has become a favorable hunting ground, real estate expert Jeff Lichtenstein says, due to the impact of the 2021 Champlain Towers South collapse

While the excess inventory in South Florida is beginning to ease, the current environment offers opportunities that were scarce during the pandemic boom. Potential changes to Florida's homestead property tax exemption could further influence the market, potentially encouraging more residents to establish residency.

Nationally, while the market is cooling, it has not fully transitioned into a buyer's market. New data from the National Association of Realtors (NAR) shows a decline in homes selling above asking price and a decrease in buyers waiving important protections. In June, only 21 percent of homes sold above list price, down from previous months and matching the previous year's levels. The average home received 2.2 offers, unchanged from May but down from 2.4 offers a year prior.

IMAGE3 New figures from the National Association of Realtors (NAR) suggest the frantic pandemic-era competition favoring sellers is cooling

"The market is less competitive than it was during the pandemic, but I wouldn't describe it as a buyer's market," said Nadia Evangelou, Senior Economist and Director of Real Estate Research at NAR. "Buyers have more choices today, so they're not under the same pressure to waive contingencies or make aggressive offers."

IMAGE7 One of the biggest changes has been the decline in buyers willing to give up key protections

A notable decrease has been observed in buyers waiving appraisal contingencies, with only 17 percent doing so in June, down from 24 percent in May. Inspection waivers saw a slight increase but remained unchanged year-over-year. Evangelou cautioned against overemphasizing month-to-month fluctuations, noting the seasonal nature of the housing market and its sensitivity to interest rates.

IMAGE4 The data also suggests first-time buyers are slowly returning. They accounted for 33 percent of all home purchases in June, down slightly from 35 percent in May but above the 30 percent recorded a year earlier

First-time buyers are showing a modest return, representing 33 percent of all home purchases in June, slightly down from May but up from the previous year. All-cash purchases remained stable month-over-month but decreased compared to a year ago, potentially improving opportunities for mortgage-dependent buyers. Virtual home buying has also cooled.

IMAGE8 The latest Realtors Confidence Index said just 21 percent of homes sold above list price in June

Despite these shifts, homes continue to sell relatively quickly, with the typical transaction closing in 30 days. Contract cancellations remain low. However, Evangelou emphasized the localized nature of real estate, stating, "Real estate is local. In some markets, especially across the South, buyers have gained more negotiating power as inventory has increased. In others, such as parts of the Northeast, inventory remains tight and well-priced homes are still receiving multiple offers. Location matters even more in today's market."

Overall inventory has improved from recent years but remains below the five to six months of supply considered indicative of a balanced market. While competition has eased from pandemic-era highs, a shortage of homes, particularly at affordable price points, persists nationally.