Realtor.com® Market Clock® Report: Buyers Gain Ground as Mortgage Rates Top 7%
About two-thirds of metros favor buyers or are moving that way, but higher rates are shrinking what a fixed monthly budget can buy
AUSTIN, Texas, Oct. 19, 2026 /PRNewswire/ -- Buyers are gaining leverage in the U.S. housing market, but higher mortgage rates are cutting their purchasing power, according to the Realtor.com® Market Clock® report released today. The national Realtor.com® Market Clock® reading has moved to 4 o'clock, late balanced and loosening toward buyers, moving from 3 o'clock last quarter. About two-thirds of metros now favor buyers outright or are moving in that direction.
"The Market Clock® tool helps buyers and sellers understand their negotiating power by bringing together housing inventory, sales, and contract activity. It shows how well supply and demand are balanced and how conditions are shifting," said Danielle Hale, chief economist, Realtor.com®. "The tool gives buyers and sellers a picture of what's happening now so they can make well-informed decisions in a rapidly changing market. Its latest reading shows buyers gaining ground nationally and in many markets. Even so, 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."
Gaining market leverage and gaining affordability are two different things. Mortgage rates rose 74 basis points in just over a month, from 6.66% in late August to 7.40% on October 8. For a buyer with a $2,000 monthly principal-and-interest budget, that means 7.2% less purchasing power—more than $22,000 less in home price. Buyers can likely negotiate harder on price and terms, but higher financing costs keep homes harder to afford.
"More buyers can negotiate in more markets, but a bigger negotiating advantage doesn't always mean more affordability," said Jake Krimmel, senior economist at Realtor.com®. "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 Midwest Favors Sellers; the South Favors Buyers
Of the 99 metros, 27 are seller's markets, 49 are balanced and loosening, 17 are buyer's markets, and six are balanced and tightening. No quadrant has a majority. Over the past year, seller's markets dropped from 39 to 27 while buyer's markets climbed from 13 to 17.
The Midwest has 16 of 18 seller's markets, while the South holds 14 of the country's 17 buyer's markets. The West moved three metros into buyer's-market territory by September: Bakersfield, Colorado Springs and Riverside.
"The Midwest has the strongest seller presence, with 16 of 18 metros in seller's territory, while the South holds 14 of the country's 17 buyer's markets," said Krimmel. "That is a sharp regional split, not a single national pattern. The map is still shifting too, with 41 metros changing clock positions over the past quarter."
Among the 41 metros that shifted over the past quarter, Austin, Seattle, Salt Lake City and Portland, Oregon each moved two hours toward buyers. Greenville, South Carolina, and Nashville alone reached the clock's peak-buyer position.
28 metros held the same clock position every month for the past year and 11 metros have been seller's markets in every month of the clock's history: Columbus, Grand Rapids, Indianapolis, Kansas City, Omaha, St. Louis and Wichita in the Midwest, Albuquerque, San Francisco and San Jose in the West, and Harrisburg in the Northeast.
What to Watch Moving Forward
With mortgage rates above 7% and the slower fall and winter season approaching, the next shifts are most likely to come from the Realtor.com® Market Clock® tool's largest clusters at 1 and 4 o'clock. Atlanta, Augusta, Charleston, Chattanooga, Denver, Jacksonville, Memphis and San Antonio are among the balanced markets that could tip into buyer's-market territory.
Among the 1 o'clock markets, Detroit, Richmond, Columbus and Indianapolis are closest to leaving seller's-market territory. If Columbus and Indianapolis cross over, they would end years-long runs as seller's markets.
The most recent readings combine housing inventory data, recorded transactions and sales projections based on contract activity through September. Jackson, Mississippi, is excluded because of a county-level gap in transaction records; the metro tables cover 99 metros plus the national reading.
Methodology
Each reading now combines the latest inventory data with recorded transactions and sales projections based on contract activity in Realtor.com data, which allows the Market Clock® tool to report conditions through September 2026, the month just ended. Historical readings shown here have been restated on the same basis for consistency, so some past values may differ slightly from those published in the Q1 and Q2 reports. Jackson, MS is excluded this quarter due to a county-level gap in transaction records; tables and figures cover 99 metros plus the national reading.
About Realtor.com®
For over 30 years, Realtor.com® has connected buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 real estate site REALTOR® agents recommend, Realtor.com® delivers consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.
Media Contact: Mallory Micetich, [email protected]
SOURCE Realtor.com
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