Pensacola housing market shifts as buyers gain leverage amidst high interest rates

PENSACOLA, Fla. — Sellers are slowly losing their leverage in the housing market.

A new report by Redfin analyzes a shift happening in the housing market in favor of buyers.

WEAR News spoke to a local realtor about the shift, why it’s happening, and what it means for you.

Those in the market who want to buy or sell a house know neither is easy right now.

“Interest rates have been high, they’re at 7%, affordability is tough right now, between insurance and interest rates,” Christina Leavenworth said.

Last month, more than 40,000 home purchase agreements fell through across the country. That’s according to a report by Redfin.

“It’s a lot of things, I think that they’re sometimes on the fence when they’re buying to begin with,” Leavenworth said. “Then they get an inspection report back and they’re going, ‘Oh gosh, I don’t think I want that.’ So buyers are more nitpicky than ever, they’re more critical, so we are seeing a lot of cancellations.”

In this market, buyers can be as fickle as they want.

“There are more homes than there are buyers right now,” Leavenworth said. “Right now we are currently at 84 days on market, so that’s about 3 months, a normal good home, is sitting on the market before they’ve got offers and moving just due to inventory.”

For homeowners sitting on 2-3% interest rates, they aren’t going to move and jump to 7% interest rates unless they have to.

“Almost like frivolous moves, that’s what we’re seeing less of,” Leavenworth said. “30, just because you want slightly nicer of a house or a little bit bigger of a house, maybe you’re staying put until the situation gets better.”

For buyers, many can’t even qualify for a house and the interest rates they’re looking at aren’t going anywhere.

But that doesn’t mean you can’t take advantage of those rates.

“The great news about being a buyer in this market is you’re likely going to get a way better deal on the home,” Leavenworth said. You’re gonna have a seller negotiate with you, once interest rates drop, everyone is gonna be coming out of the gates.”

Currently, home shoppers in Southeast Florida have the most buying power of anywhere else in the country, according to Redfin.