Power Shift: US Housing Market Cools as More Metros Transition to Buyer’s Markets

The multi-year grip that sellers have held over the United States housing market is beginning to loosen. A growing number of metropolitan areas across the country are transitioning into buyer’s markets, offering relief to house hunters who have faced years of soaring prices, intense bidding wars, and limited inventory.

According to the second-quarter market clock report released by Realtor.com, which measures housing conditions based on supply levels, listing prices, market duration, and sales ratios, 19 of the nation’s 100 largest metro areas are now firmly in buyer’s market territory. An additional nine metro areas are rapidly trending in that direction and could join them by the end of the third quarter.

This shifting dynamic represents a significant departure from the pandemic-era housing boom. Following the Federal Reserve‘s aggressive interest rate hikes designed to curb inflation, mortgage rates surged to two-decade highs, hovering near 7%. This initially triggered a “lock-in effect,” where homeowners with low-interest mortgages refused to sell, paralyzing inventory. However, sustained high borrowing costs have eventually dampened demand, forcing a buildup of inventory in several regional markets.

The geographic distribution of these shifting markets reveals distinct regional trends. While 18 of the 19 current buyer’s markets are concentrated in the American South—with Colorado Springs, Colorado, being the sole exception—the nine emerging buyer’s markets are spread across the country. These transitional regions include Atlanta, Georgia; Bakersfield, California; Birmingham, Alabama; Honolulu, Hawaii; Houston, Texas; Memphis, Tennessee; Riverside, California; San Antonio, Texas; and Syracuse, New York.

In Texas, the shift is particularly visible. In Houston, single-family home inventory has climbed to 5.2 months, according to local real estate data. A five- to six-month supply is historically considered a balanced market. Local real estate agent Thao Nguyen noted that this inventory cushion gives buyers the luxury of time to compare properties, conduct thorough inspections, and negotiate rather than rushing into bidding wars. Sellers in the area are increasingly offering concessions, such as covering closing costs or purchasing mortgage rate buy-downs to secure deals.

A similar trend is unfolding in San Antonio, where homebuilders are offering aggressive incentives that individual resale sellers struggle to match. Local agents Rommy Deais and Mario Victorica point out that new construction projects are driving the buyers’ advantage, with builders offering interest rate buy-downs and closing cost assistance. Properties are sitting on the market longer, leading to more frequent price reductions.

In the Atlanta metro area, rising inventory and high mortgage rates have kept some prospective buyers on the sidelines, shifting leverage. Real estate agent LeAnne Weathers observed that homes are lingering on the market, making sellers far more open to negotiating final prices and mortgage rate concessions.

Meanwhile, in Southern California’s Riverside market, the buyer’s advantage is concentrated in the condominium sector. Agent Daniel Beer explained that skyrocketing homeowners association (HOA) fees, driven by rising operating costs and new government regulations, have prompted a wave of condo owners to sell. This surge in condo inventory has given buyers significant leverage compared to the single-family home market.

Even in the Northeast, which has generally maintained tighter inventory throughout the post-pandemic period, cracks are appearing in the seller’s market. In Syracuse, New York, reduced competition has allowed buyers to successfully reintroduce home inspection contingencies into contracts—a safeguard that was routinely waived during the height of the market frenzy. Agent Ben Gray noted that buyers are also expanding their geographic search up to 50 minutes outside the metropolitan core to find willing sellers.