Eight U.S. Cities Could Soon Tip Into Buyer's Market Territory
A new report finds about two-thirds of major metro areas now favor buyers or are moving that way, with Atlanta, Denver, Jacksonville and five other cities poised to join the 17 existing buyer's markets.
The U.S. housing market tilted further toward buyers in the third quarter, with roughly two-thirds of the nation's largest metro areas now favoring buyers or moving in that direction, according to a report released Monday by. Eight cities — Atlanta, Augusta, Charleston, Chattanooga, Denver, Jacksonville, Memphis and San Antonio — could soon cross into buyer's-market territory, giving house hunters in those areas more room to negotiate.
The shift is not evenly distributed. Of the 99 largest metro areas tracked, only 17 are currently classified as buyer's markets, up from 13 a year earlier. Another 27 remain seller's markets, down sharply from 39 over the same period. The Midwest holds the most solidly seller-friendly conditions, while the South leans increasingly toward buyers. «That is a sharp regional split, not a single national pattern,» said Jake Krimmel, a senior economist at the Austin-based real estate site.
Florida accounts for eight of the country's current buyer's markets, and the data helps explain why. Homes there sit on the market for a median of 81 days, compared with a national average of 61, and sell for about 2.67% below the asking price. Nationwide, the median listing price fell 1.4% in September to $419,250, but the decline was steeper in the South, where prices dropped 2.5%.
The 17 metro areas currently deemed buyer's markets are Bakersfield, California; Baton Rouge, Louisiana; Cape Coral, Florida; Colorado Springs, Colorado; Columbia, South Carolina; Deltona, Florida; Greenville, South Carolina; Lakeland, Florida; McAllen, Texas; Miami, Florida; Nashville, Tennessee; New Orleans, Louisiana; Orlando, Florida; Port St. Lucie, Florida; Riverside, California; Sarasota, Florida; and Tampa, Florida.
Even where buyers gain leverage, the advantage does not automatically translate into a more affordable purchase. The 30-year mortgage rate stands at 7.4% and has climbed steadily in recent weeks, approaching its highest level in nearly three years. «Affordability is likely to continue as a top concern for shoppers, especially as mortgage rates above 7% limit how much home a fixed budget can buy,» said Danielle Hale, chief economist at. Krimmel put the tension more bluntly: «As rates rise, the same monthly budget supports a lower home price. Market leverage and purchasing power are moving in opposite directions right now.»
The findings come from 's quarterly Market Clock analysis, which places each metro area on one of 12 clock positions to indicate whether buyers or sellers hold the negotiating advantage. The clock winds from peak seller dynamics through loosening conditions that favor buyers, into peak buyer dynamics, and then back through tightening conditions that return leverage to sellers.
The seller's markets remain concentrated in the Midwest, where half of the country's hottest housing markets are located in Wisconsin or Illinois, according to a separate report. Seven Midwestern metro areas have held seller's-market status every month since the site began tracking the data in 2021. Columbus, Ohio, and Indianapolis, Indiana, appear poised to leave seller's-market territory soon, which would end a multiyear run. The 27 current seller's markets include Akron, Albuquerque, Allentown, Boise City, Chicago, Cincinnati, Cleveland, Columbus, Dayton, Detroit, Grand Rapids, Harrisburg, Hartford, Indianapolis, Kansas City, Madison, Milwaukee, Omaha, Richmond, Rochester, San Francisco, San Jose, Scranton, St. Louis, Toledo, Virginia Beach and Wichita.
For buyers in the eight cities on the cusp of a shift, the practical effect may be more negotiating room on price, repairs or closing costs rather than a dramatically cheaper home. The report suggests the national picture is less a single trend than a patchwork of regional markets moving at different speeds, with the South loosening fastest and the Midwest holding firm.
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