Buyer momentum is increasing, but it is far from universal
More than 60 percent of major U.S. housing markets are shifting to buyers, as Realtor.com’s new Market Clock highlights a growing divide between regions and evolving local conditions.
Just over 60 percent of the nation’s largest housing markets have shifted to a balanced or buyer-friendly area, while only 26 percent still favor sellers. according to a new analysis from Realtor.com.
The data comes alongside the launch of the Realtor.com Market Clock, a new tool intended to cut through the noise in the housing market and give buyers, sellers and industry observers a clearer, forward-looking view of local conditions.
The Realtor.com Market Clock currently puts the national housing market at 3 o’clock, a phase of “balanced easing” that signals a gradual shift toward buyer-friendly conditions, but not at an accelerated pace. But that national snapshot obscures a much more fragmented reality about the country’s largest metro areas, which now span nearly the entire dial.
Of the 50 largest markets, 13 (26 percent) still favor sellers, while the largest share – 23 (46 percent) – is in that balancing-loose middle ground. Another eight (16 percent) have already moved into buyer’s market territory. Meanwhile, six metros (12 percent) are moving in the opposite direction and entering a phase of balanced tightening.
Danielle Hale | Credit: Realtor.com
It’s a reminder that in some countries, sellers’ influence is starting to rebuild.
“A national picture is useful, but when making a real estate decision, the local details are what really matter,” Danielle Hale, chief economist at Realtor.comsaid a statement. “Right now, a homebuyer in Houston or San Antonio is navigating a very different market than someone in Hartford or Milwaukee. The Realtor.com Market Clock is built to make those differences visible at a glance.”
The Sun Belt is loosening while northern markets remain tight
The regional split underlines how unequal the market has become. All eight buyer markets are concentrated in the South (seven) and West (one), while most of the thirteen seller markets are clustered in the Midwest (seven) and Northeast (three). This analysis is similar to a recent ranking of “hot” and “cold” markets, which noted the advantage of sellers in the Northeast.
Buyer-friendly conditions are especially pronounced in Florida and Texas, which represent five of the eight buyer markets, including Austin, Texas; Tampa, FL; Jacksonville, FL; Orlando, FL; and Miami. Each of these metros falls within what the framework defines as Early Buyer territory. Inventories are increasing, price cuts are becoming more common and bargaining power is shifting to buyers, with further gains likely in the coming months.
At the other end of the spectrum, seller strength remains most entrenched in the Midwest and Northeast. Four metro areas – including Hartford, Connecticut – are at “Peak Seller,” where competition and pricing power are most intense.
Another six, including Milwaukee, San Francisco and Providence, Rhode Island, are in the Early Seller phase as already strong conditions continue to tighten. Meanwhile, three markets – including Boston and San Jose – are in advanced sales stages, where competition remains fierce but early signs of softening are emerging.
Another eight of the top 50 metros land at 4 o’clock on the Marktklok. This is the ‘late-balanced’ phase, where conditions are still technically the same, but are clearly leaning towards buyers.
In markets like Charlotte, North Carolina; Washington, DC; Phoenix; and Las Vegas, homes are staying on the market longer, the price drop is becoming more apparent and the momentum is steadily shifting. If current trends continue, these metros are likely to move fully into buyer’s market territory in the coming months.
Property data, simplified
The Realtor.com Market Clock is a new framework designed to simplify complex real estate data into a clear snapshot of local market conditions. It is based on metrics such as supply-demand balance, market pace and price pressure and maps each metropolis on a 12-hour dial.
Seller-friendly conditions are at the top (11 to 1 o’clock), buyer-friendly markets at the bottom (5 to 7), with balanced phases in between – either easing towards buyers (2 to 4) or tightening again towards sellers (8 to 10). At 12 o’clock, sellers have maximum leverage; in 6 buyers do.
The Realtor.com Market Clock is available through Realtor.com portal for housing market research and will be updated quarterly.
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