Rising mortgage rates have shifted some advantages to prospective homebuyers this fall even as rates above 7% are reducing the purchasing power buyers have available. Realtor.com’s market clock report for the third quarter was released on Monday and found that the national market clock now sits at 4 o’clock after it shifted one hour in favor of buyers since the second quarter, with the time indicating a late balanced market that’s trending toward buyers. Around the country, the number of outright sellers’ markets declined from 39 to 27 in the past 12 months, while the number of buyer’s markets rose from 13 to 17. The 55 remaining markets are sitting in balanced territory, with 49 loosening toward buyers and six tightening in favor of sellers.
Higher mortgage rates have slowed the number of sales and increased inventory levels in the market, prompting sellers to offer price cuts and concessions in an effort to attract buyers. But while buyers are gaining stronger leverage in their negotiations with sellers, that isn’t replacing the lost purchasing power they’re facing due to the higher mortgage rates. Realtor.com senior economist Jake Krimmel noted that mortgage rates rose 74 basis points in a little more than a month, jumping from 6.66% in late August to 7.4% on Oct. 8. For a would-be homebuyer who has a budget for a $2,000 monthly principal-and-interest payment, the spike in mortgage rates erased about $22,000 in home purchasing power.
The Realtor.com market clock analysis showed significant regional divergences across regions as the relative leverage of buyers and sellers varied widely in different parts of the country. Markets in the Midwest remained favorable for sellers and accounted for 16 of the 27 seller-friendly markets in the country where lower home prices are keeping demand elevated and inventory levels relatively low. The Northeast has experienced a systemic lack of supply but unexpectedly saw the largest decline in seller’s markets, which fell from 11 to five over the last year as conditions in higher-cost metro areas like Boston and Providence eased amid higher inventory levels.
The South led the country in the number of buyer’s markets, adding three since September 2025 to bring the total to 14. The number of seller’s markets in the South also declined from seven to two. The West had zero buyer’s markets in June, but picked up three by September as Bakersfield and Riverside, California, switched columns along with Colorado Springs, Colorado. The metro areas that are currently in peak buyer’s markets are Greenville, South Carolina, and Nashville, Tennessee. There was just one metro area, Hartford, Connecticut, where conditions reflect a peak seller’s market.
