Realtor.com Market Clock Report: Buyers Gaining Leverage Despite High Mortgage Rates
The Realtor.com® Market Clock® report indicates that buyers are gaining leverage in the U.S. housing market, with two-thirds of metropolitan areas favoring or trending toward buyer-friendly conditions. However, mortgage rates have climbed above 7%, reducing purchasing power for homebuyers on fixed budgets by over $22,000. The national Market Clock reading has moved to '4 o'clock,' signaling a shift toward buyers compared to the previous quarter's position at '3 o'clock.' The report highlights regional disparities: while the Midwest remains seller-favoring with 16 of its 18 metros in that category, the South leads as buyer-friendly. The West has also seen some movement into buyer territory for cities like Bakersfield and Colorado Springs. Over the past quarter, 41 out of 99 metro areas changed their market positions. Looking ahead, analysts suggest that with mortgage rates above 7% and seasonal slowdowns approaching, shifts are likely to occur in balanced markets at '1 o'clock' or buyer-favoring ones at '4 o'clock.' Cities like Atlanta, Denver, and Detroit may see changes as the housing landscape continues evolving.
Topics: affordability buyers' leverage housing market mortgage rates