Northeast gains leverage as Sun Belt markets slow

"Absorption measures how quickly inventory is being removed from the market relative to what's available. For housing professionals, that metric is one of the clearest signals of negotiating power in real time. When absorption is elevated, homes clear quickly and sellers retain leverage. When absorption falls and supply builds, timelines stretch and buyers gain negotiating flexibility."

"Several Northeast metro areas are posting absorption rates near or above 18%, including the Boston metro (56 days on market), Washington, D.C., metro (77 days), Baltimore metro (77 days) and Philadelphia metro (77 days). The Boston metro's 56-day median time on market compared to the 91-day national median signals faster turnover despite seasonal headwinds."

"Higher absorption rates typically reflect tighter inventory conditions and reduced pricing pressure, even as national supply expands. Conditions are markedly different in parts of the Sun Belt, where several Florida and Texas metro areas are operating with 3.9 to 5.0 months of supply."

The U.S. housing market enters spring with improving fundamentals: pending home sales reached 59,283 units year-over-year growth, new listings increased to 60,428, and active inventory climbed to 700,259 homes. National absorption rates declined to 9.68%, with months of inventory rising to 2.7 months and price reductions declining to 31.9%. These metrics suggest overall stabilization. However, significant regional variations are emerging. Northeast metros including Boston, Washington D.C., Baltimore, and Philadelphia maintain absorption rates near or above 18%, with 1.3 to 1.5 months of supply, preserving seller leverage. Conversely, Sun Belt markets in Florida and Texas operate with 3.9 to 5.0 months of supply, shifting negotiating power toward buyers. Absorption rates serve as critical real-time indicators of market leverage, with elevated rates enabling quick inventory clearance and seller advantage.

Read at www.housingwire.com