Buyers Are Regaining the Upper Hand
After several years marked by rising prices, limited inventory and intense competition, buyers are gradually regaining leverage in both the French and U.S. real estate markets.
The balance between buyers and sellers is shifting. Properties are taking longer to sell, negotiations are becoming more common, and purchasers are once again asking for price adjustments, financing conditions and additional time to complete their projects.
But is this a lasting change—or simply a temporary pause before the market tightens again?
A new balance of power
For a long time, sellers enjoyed a particularly favorable position. In many areas, demand exceeded supply, giving homeowners the ability to set ambitious asking prices and receive multiple offers within a short period of time.
Today, the situation is more nuanced. Higher borrowing costs, economic uncertainty and stricter lending conditions have reduced the purchasing power of many households. Buyers are taking more time to compare properties, assess their financing capacity and negotiate before making an offer.
This change does not necessarily mean that prices are collapsing. Rather, it reflects a return to a more balanced market—one in which buyers have greater room to negotiate and sellers must demonstrate that their asking price is justified.
The French market: cautious buyers and selective demand
In France, the real estate market remains highly dependent on location. The most sought-after urban areas, attractive regional cities and well-connected neighborhoods continue to benefit from relatively strong demand.
However, buyers have become more selective. Energy performance, access to public transportation, proximity to schools and the overall condition of a property are now decisive factors. Homes requiring substantial renovation are often subject to tougher negotiations, particularly when the cost of improving energy efficiency is taken into account.
The gap between properties that are correctly priced and those whose owners are reluctant to adjust their expectations is becoming increasingly visible. Well-presented and realistically priced homes can still attract attention, while overpriced properties may remain on the market for longer periods.
The U.S. market: regional differences remain decisive
The U.S. real estate market is equally diverse. Conditions vary significantly from one state, metropolitan area or neighborhood to another.
In some regions, limited housing inventory continues to support prices and competition between buyers. In others, higher mortgage rates and increased construction activity have created a more favorable environment for purchasers.
American buyers are also paying close attention to monthly affordability. The total cost of homeownership—including mortgage payments, insurance, property taxes, maintenance and homeowners’ association fees—has become a central consideration.
As a result, a property that may appear affordable based solely on its purchase price can become considerably more expensive once all recurring costs are included. This is encouraging buyers to negotiate more carefully and to reconsider the size, location and type of property they are prepared to purchase.
Affordability is now at the heart of the market
Whether in France or the United States, affordability has become the key issue.
The combination of property prices and borrowing costs determines how much households can realistically spend. Even when prices stabilize, higher interest rates can significantly increase the monthly cost of a mortgage.
This has several consequences:
- buyers are postponing their projects;
- some households are purchasing smaller properties;
- others are moving farther away from major cities;
- first-time buyers are finding it increasingly difficult to enter the market;
- sellers are facing a smaller pool of financially qualified purchasers.
For buyers, this environment requires careful preparation. A strong financing plan, a realistic budget and a clear understanding of local prices are essential before entering negotiations.
Sellers can no longer rely solely on market momentum
The current environment also requires sellers to adapt.
In a highly competitive market, sellers could sometimes afford to list a property at an ambitious price and wait for demand to catch up. That strategy is becoming riskier. A property that remains on the market for too long may lose appeal and eventually require a more substantial price reduction.
The first few weeks after a property is listed are often critical. Buyers and agents quickly compare it with similar homes available in the same area. If the price is considered excessive, the property may be overlooked from the outset.
Sellers should therefore pay particular attention to:
- the accuracy of the valuation;
- the presentation of the property;
- the quality of photographs and online advertising;
- the energy performance of the home;
- the clarity of the legal and technical documentation;
- the flexibility of the negotiation process.
A realistic asking price does not necessarily mean selling at a discount. It can help generate interest, encourage viewings and create the conditions for a successful transaction.
Is the buyers’ advantage sustainable?
The question now is whether buyers’ renewed negotiating power will last.
Several factors could influence the future direction of the market. If borrowing costs decline, demand could increase again and competition could return, particularly in areas where housing supply remains limited.
Conversely, if economic uncertainty persists or financing conditions remain restrictive, buyers may continue to benefit from a more balanced market.
The supply of housing will also play a major role. In both France and the United States, the shortage of well-located and affordable properties can limit the extent to which prices fall. When demand returns, markets with insufficient inventory may become competitive again very quickly.
The current period should therefore not be interpreted as a permanent transformation. Real estate markets are cyclical, and local conditions can change rapidly.
A market that rewards preparation
For buyers, the present environment offers opportunities—but it is not a reason to act without caution. Negotiation power is useful only when combined with sound financial planning and a clear understanding of the property being purchased.
For sellers, the market remains open, but success depends more than ever on realism, preparation and responsiveness.
In both France and the United States, the era of automatic price growth and unconditional demand appears to be behind us. Buyers are once again asking questions, comparing alternatives and negotiating terms. Sellers must respond to this new reality by adapting their expectations and offering genuine value.
The balance of power may have shifted toward buyers—but for how long? The answer will depend on interest rates, economic confidence, housing supply and the ability of each market to meet the needs of its population.
One certainty remains: in a changing market, preparation and local expertise are more valuable than ever.
André Perrissel