# Buyer's Market Solidifies, Sellers Take EVEN Less | Jan. 2026 Update Source: https://www.youtube.com/watch?v=3QXAZV_Vyjw Recap page: https://rapidrecap.app/video/3QXAZV_Vyjw Generated: 2026-01-23T15:02:13.571+00:00 --- ## Quick Overview The January 2026 housing market update indicates the market is the strongest buyer's market on record, with 47.1% more sellers than buyers actively in the market, leading to investor optimism driven by lower mortgage rates and better negotiation ability, despite ongoing challenges like high expenses and difficulty finding good deals. **Key Points:** - The current housing market is estimated to be the strongest buyer's market on record, with 47.1% more sellers than active buyers as of the latest data (00:00, 6:20). - Mortgage applications for purchasing a home are up 10% higher than the previous year, indicating growing demand, even as 30-Year Fixed Rate Mortgage Averages have fallen to 6.0% (2:35, 6:00, 6:11). - New listings have dropped to their lowest point in nearly two years, which is not due to spiking demand but rather sellers holding onto properties (4:10, 5:17). - Investor optimism is high for 2026, with 150 on the Pulse Index, driven by expectations of lower mortgage rates (29.5% citing this as the biggest opportunity) and a better ability to negotiate (24%) (19:56, 22:11). - The primary challenge cited by investors is rising expenses (insurance, taxes, etc.), particularly for those with 11+ properties (over 40%), followed by difficulty finding good deals (around 34% for smaller portfolios) (25:36, 25:57). - The overall sentiment among investors is positive, with nearly 60% planning to increase their portfolio size in the next 12 months, contrasting with the fear of a market crash (27:46, 28:00). ![Screenshot at 00:00: A chart titled "It's the Strongest Buyer's Market on Record" showing the percentage of more sellers than buyers actively in the market, peaking near 47.1% recently, illustrating the severe imbalance favoring buyers.](https://ss.rapidrecap.app/screens/3QXAZV_Vyjw/00-00-00.jpg) **Context:** This video provides a January 2026 update on the US housing market, presented by Dave Meyer of BiggerPockets. The analysis relies on recent data regarding seller/buyer ratios, mortgage applications, new listings, mortgage rates, and a survey of real estate investors regarding their current challenges and expected opportunities for the coming year. ## Detailed Analysis The January 2026 housing market is characterized as the strongest buyer's market on record, with an estimated 47.1% more sellers than active buyers (00:00). Despite this imbalance, demand, measured by mortgage purchase applications, is growing, showing a 10% year-over-year increase, while 30-year fixed mortgage rates have modestly dropped to around 6.0% (2:35, 6:00). New listings remain low, having dropped to near two-year lows, primarily because existing homeowners are reluctant to sell due to low inventory and the fear of giving up low mortgage rates locked in during the low-rate era (4:10, 5:17). The 2026 Pulse Index suggests an optimistic outlook for investors at 150, up from 108 in 2025, indicating investors anticipate favorable conditions ahead (20:06). The biggest anticipated opportunity for investors in the next 12 months is lower mortgage rates (29.5%), followed by better negotiation ability (24%) and increased inventory/better deal flow (23%) (22:11). Conversely, the biggest challenge cited by investors is rising expenses (insurance, taxes, etc.), especially for those with 11+ properties (over 40%), followed by difficulty finding good deals (up to 34% for smaller portfolios) (25:36, 25:57). The speaker advises investors to use the current market dynamics—longer days on market (9:37) and improved negotiation power—to acquire assets below comparable sales prices (10:25), advocating for a proactive strategy rather than a 'wait and see' approach. ### Market Status - Strongest Buyer's Market on Record (47.1% more sellers than buyers) - Mortgage purchase applications up 10% YoY - New listings are at nearly two-year lows (4:10, 5:17) ### Mortgage Rates & Affordability - 30-Year Fixed Rate Average recently dipped below 6.0% (6:00, 6:11) - Affordability is still poor, but mortgage rates dropping slightly helps (13:33, 13:56) ### Investor Sentiment (2026 Pulse Index) - Index at 150 (Positive), up from 108 in 2025 - 58% plan to increase portfolio size next 12 months; 25% plan to optimize existing holdings (27:53, 28:16) ### Top Investor Opportunities (Next 12 Months) - Lower mortgage rates (29.5%) - Better ability to negotiate (24%) - Increasing inventory/better deal flow (23%) (22:11) ### Top Investor Challenges - Rising expenses (insurance, taxes, etc.) is the #1 challenge, especially for large portfolios (up to 43%) - Difficulty finding good deals is the second largest concern (34% for small portfolios) (25:36, 25:57) ### Market Dynamics - Current market conditions favor negotiation, with median days on market for homes increasing (9:37) - Foreclosure rates are low (3.34% vs 4.45% average) (17:32, 17:52) ![Screenshot at 00:00: A chart titled "It's the Strongest Buyer's Market on Record" showing the percentage of more sellers than buyers actively in the market, peaking near 47.1% recently, illustrating the severe imbalance favoring buyers.](https://ss.rapidrecap.app/screens/3QXAZV_Vyjw/00-00-00.jpg) ![Screenshot at 00:04: A dual-axis chart showing Purchase Applications \(light blue bars\) indexed to 2018/2019 average and the 30-Year Fixed Rate Index \(dashed line\), indicating low application volume despite falling rates.](https://ss.rapidrecap.app/screens/3QXAZV_Vyjw/00-00-04.jpg) ![Screenshot at 20:06: The 2026 Pulse Index gauge showing a strongly positive outlook at 150, compared to 108 in 2025, signaling investor optimism for the next 12 months.](https://ss.rapidrecap.app/screens/3QXAZV_Vyjw/00-20-06.jpg) ![Screenshot at 25:24: A bar chart detailing Current Biggest Challenges By Number of Investment Properties, with 'Rising expenses' being the top concern for large portfolio holders \(11+ properties\).](https://ss.rapidrecap.app/screens/3QXAZV_Vyjw/00-25-24.jpg) ![Screenshot at 27:43: A bar chart showing investor priorities for the next 12 months, where 'Increase my portfolio size' dominates at nearly 60%.](https://ss.rapidrecap.app/screens/3QXAZV_Vyjw/00-27-43.jpg)