Realtor.com Finds 19 U.S. Metro Buyer's Markets, With 9 More Trending by Q3

Q: Sellers are cutting prices, but is this 'buyer's market' an illusion due to still-high mortgage rates?

Yes — it is a real buyer’s market in negotiating terms, but for many households it still feels illusory because high mortgage rates keep monthly payments expensive. The shift is genuine. Realtor.com says 19 metros are already in buyer’s-market territory, with nine more moving that way. Inventory is rising, homes are sitting longer, and sellers are increasingly offering price cuts, closing-cost help and rate buydowns. National listing prices have been falling year over year, and Redfin reports a record share of sellers giving concessions. In places such as Atlanta, Houston, San Antonio and Syracuse, buyers now have more leverage on inspections, repairs and price. But affordability has not improved nearly as much as bargaining power. Mortgage rates around the mid-6% range still make the monthly cost of buying far higher than it was a few years ago. Even where asking prices are down 2% to 3%, financing costs can wipe out that benefit. For many first-time buyers, the real barrier is not sticker price but whether they can qualify for the payment. That is why this is better described as a selective buyer’s market, not a broadly affordable one. Buyers with strong income, cash reserves or the ability to use seller-paid rate buydowns can benefit from more choice and less competition. Others remain sidelined by borrowing costs. Unless mortgage rates fall meaningfully, the market is likely to stay buyer-friendlier on paper while remaining financially difficult in practice.

3 articles · Updated · Fox Business · Jul 22

Nineteen of the 100 metro areas tracked by Realtor.com were in buyer's-market territory in the second quarter, and nine more could join them by the end of Q3.
Higher inventory, longer selling times and elevated mortgage rates are shifting leverage to buyers, giving them more room to negotiate on price, closing costs and rate buydowns.
Houston's single-family inventory has risen to 5.2 months, while agents in Atlanta and San Antonio also reported more seller flexibility, price cuts and stronger builder incentives.
The nine emerging buyer's markets span Atlanta, Houston, San Antonio, Riverside, Syracuse and four other metros, a broader geographic mix than the current 19, 18 of which are in the South.
The report suggests years of seller dominance are easing in parts of the U.S. housing market, though affordability pressures and mortgage rates still shape demand.