Southern states see a more buyer-friendly market

New construction is giving homebuyers more choices and negotiating power across the South, increasing competition for sellers and making realistic pricing more important, according to HomeServices of America’s 2026 Mid-Year National Housing Outlook.

The report found that builders have added housing supply across the region as buyer demand has moderated. In some markets, buyers may have more room to negotiate over prices, closing costs, repairs and other contract terms.The shift has not fully changed seller expectations. Nationally, 83% of sellers expect to receive their asking price or more, but 34.2% had reduced their list price as of February, the report said.

The regional findings reinforce trends previously identified by Florida Realtors®.

Florida Realtors Chief Economist Brad O’Connor has said some of Florida’s largest price declines are occurring in areas with the most new construction. The competition sellers face also differs by market. New homes account for a larger share of sales in places such as Lakeland and Cape Coral, while the price difference between newly built and existing homes varies widely across the state. That means Realtors need to help customers compare more than asking prices, including builder incentives, financing offers, property features and location.

Florida Realtors also has reported that growing inventory is creating more choices and opportunities for buyers, while markets with tighter supply continue to see stronger price growth. Conditions vary across the state, so buyers in Lakeland or Orlando may find different options and negotiating opportunities than buyers in Miami.

For sellers, the changing market makes the initial pricing decision especially important. Florida Realtors previously reported that sellers can attract more buyer interest by setting a competitive price from the start, particularly in markets where shoppers have a wider selection of homes.

For buyers, the additional supply may create opportunities to seek price reductions, concessions or builder incentives. For sellers, it increases the need to understand both existing-home listings and new communities competing for the same customers.

The report said regional differences will continue to shape housing conditions, making local market knowledge essential as buyers and sellers weigh their options.

© 2026 Florida Realtors®