When Other Buyers Stop Buying, Turn a Slower Housing Market Into Your Opportunity
Written by Danijella Dragas, CEO
Miss Dragas brings over 18 years of experience at Bear Stearns, having worked in its offices in London, São Paulo, Beijing, New York, and Irvine. During her final four years with the firm, she specialized in asset management and capital markets/investment banking. She was also one of the original team members who introduced Bear Stearns mortgages to the residential wholesale banking market.
When the housing market slows down, the headlines can make buyers nervous. Interest rates are rising. Affordability is challenging. Sales are slowing. More properties are sitting on the market. Sellers are reducing prices. The natural reaction is to wait. But what if the moment when everyone else stops buying is precisely when a prepared buyer should start looking more seriously? A changing market does not automatically mean opportunity has disappeared. Sometimes, it means competition has disappeared. For a buyer who is financially prepared, working with a sharp buyer's agent, and willing to look beyond the headlines, that can change everything.
The market is giving buyers more leverage
The United States housing market is showing signs of becoming more favorable to buyers in many areas. Mortgage rates recently moved above 7%, with Freddie Mac reporting an average rate of 7.28% for a fixed mortgage with a term of 30 years for the week ending October 1, 2026. Higher borrowing costs are causing many potential buyers to step back. At the same time, inventory is increasing.
Realtor.com reported that active listings rose 5.4% year over year in September, while pending listings fell 4.1%. Even more importantly, 20.8% of listings experienced a price reduction during the month, the highest September level since 2018. That combination tells us something important: There are fewer buyers competing for some properties while more sellers are becoming willing to negotiate.
That is not necessarily a reason to run away from the market. It may be a reason to become more strategic.
Don't let the headlines make your decision for you
Data matters. Statistics matter. Economic indicators matter. But they should be used to make better decisions, not to create fear. There is a major difference between being informed and allowing the news cycle to determine your financial future.
A buyer may hear: "Rates are too high." "The market is slowing." "Prices might fall." "Maybe I should wait." But the better question may be: "What does this environment allow me to negotiate that I couldn't negotiate when everyone was competing for the same property?"
That is a completely different mindset. Instead of looking at a slower market through a scarcity mindset, look at it through an opportunity mindset.
Less competition can change the negotiation
Imagine two buyers looking at the same property. In a highly competitive market, ten other buyers may also be interested. The seller may receive multiple offers. Buyers may compete against one another. Inspection contingencies may become less attractive. Negotiations over the asking price may disappear. The buyer's primary objective becomes winning.
Now change the environment. Suppose several buyers have stepped away because of interest rates, economic uncertainty, or fear about the future. Suddenly, the conversation can become less about "How much do I need to pay to beat everyone else?" and more about "What price and terms make sense for me?"
That could mean negotiating the purchase price, requesting seller concessions where appropriate, negotiating repairs, asking for assistance with closing costs, or structuring other terms that improve the overall economics of the transaction.
The opportunity isn't necessarily that every home becomes cheap. The opportunity is that the buyer may have more negotiating power.
Your real estate agent matters more in this market
A buyer does not need an agent who simply opens doors. In a changing market, you need an agent who understands how to read the market and negotiate within it.
A sharp buyer's agent should be looking at:
How long the property has been listed
Previous price reductions
Comparable recent sales
Competing properties
Seller motivation
Local inventory
Property condition
Recent buyer activity
Trends specific to the neighborhood
National statistics provide the backdrop, but real estate is local. A national headline may say one thing while your particular neighborhood is experiencing something completely different. That is why the combination of data, local expertise, and negotiation skill becomes so important.
Don't confuse a market that favors buyers with a "buy anything" market
There is an important distinction. A buyer's market does not mean every property is a good investment. It does not mean buyers should overextend themselves. It does not mean a buyer should ignore interest rates, taxes, insurance, maintenance, or affordability over the long term. The opportunity belongs to the prepared buyer.
Before making an offer, buyers should understand their financing, know their comfortable payment range, have their documentation organized, and understand what they can realistically afford. Then they can shop from a position of strength. The goal isn't simply to buy a property. The goal is to buy the right property on the right terms.
Turn distraction into opportunity
One of the most powerful financial skills is learning how to separate information from emotion. The market may be noisy. The headlines may be negative. Other buyers may be sitting on the sidelines. That doesn't automatically mean you should. Sometimes the biggest opportunities appear when the majority of people are distracted by uncertainty.
Real estate has repeatedly demonstrated that market conditions change. Buyers who focus only on today's headlines can miss opportunities that become obvious only after the market turns. The challenge is having the discipline to evaluate the opportunity while everyone else is reacting emotionally.
The smart buyer asks different questions
Instead of asking, "Is the market going down?" ask, "What properties are becoming negotiable?"
Instead of asking, "Are rates too high?" ask, "Can I afford the payment, and is there a financing strategy that makes this property work?"
Instead of asking, "Why isn't everyone buying?" ask, "Why are other buyers stepping away, and does that create an advantage for me?"
Instead of asking, "What if I miss the bottom?" ask, "Does this property make financial sense for my goals today and over the long term?" These questions move the conversation from fear to strategy.
Opportunity favors the prepared
Today's market may not be easy. Higher mortgage rates are putting pressure on affordability, and housing activity has slowed in many parts of the country. But at the same time, inventory is improving and price reductions are becoming more common.
That creates a different type of market. It may not be a market where buyers win simply because they show up. It is a market where prepared buyers can potentially negotiate.
If you have your financing in order, understand your numbers, know what you want, and have an experienced real estate professional negotiating beside you, the lack of competition can become an advantage. The market doesn't have to be perfect for you to buy. It simply has to make sense for your financial situation, your goals, and the property you are purchasing.
The bottom line
When other people stop buying, don't automatically assume the opportunity has disappeared. Sometimes, the opportunity has simply become less crowded.
Listen to the data. Study the statistics. Understand the risks. But don't allow negativity to make the decision for you. The smartest buyers don't ignore the market. They understand it.
When everyone else sees uncertainty, a prepared buyer may see something very different: Less competition. More negotiation. More choices. Potentially, an opportunity to acquire the property they really want on better terms.
Read more from Danijella Dragas
Danijella Dragas, CEO
Born and raised in England, Miss Dragas earned a Bachelor of Science (BS) in Economics, International Trade, and Banking from the University of London. She spent more than 18 years at Bear Stearns, working across London, São Paulo, Beijing, New York, and Irvine, with a focus on asset management, capital markets, and investment banking. With 36 years of experience in residential and commercial lending, she specializes in construction finance, asset repositioning, financial technology (fintech), blockchain, multi-sector business finance, hospitality, clean energy, trade programs, and pre-initial public offering (pre-IPO) ventures.
