The home buyers market is finally tilting a bit toward shoppers in parts of the U.S., as higher mortgage rates ease slightly and more listings hit the market in key cities, according to new data from Zillow and Redfin.
Key Points
This fall brought a rare dose of good news for would‑be buyers: borrowing costs have inched down from their recent highs, more homes are coming up for sale, and price growth has cooled to its slowest pace in more than a decade. Together, those shifts have pushed 19 large metro areas into what Zillow calls a buyer’s market — places where there are more homes listed than there are people ready to buy.
It is far from a full reset; prices and payments are still painfully high, especially for first‑time buyers. But for the first time in a while, the home buyers market is starting to offer pockets of leverage back to shoppers instead of sellers.
Where Buyers Are Gaining the Upper Hand
Zillow’s latest look at the home buyers market shows the number of buyer‑friendly major cities rising over the past year.
Its October list now includes 19 large markets where inventory has outpaced demand enough to give shoppers more bargaining power. Nine of those markets are new compared with a year earlier, and three were added just since September: Cincinnati, Birmingham and Milwaukee.
Those 19 major markets, ranked from most to least favorable for buyers, are:
- Miami, FL
- Indianapolis, IN
- Milwaukee, WI
- Pittsburgh, PA
- New Orleans, LA
- Louisville, KY
- Jacksonville, FL
- Austin, TX
- Memphis, TN
- Detroit, MI
- Nashville, TN
- Tampa, FL
- Seattle, WA
- Atlanta, GA
- Houston, TX
- Charlotte, NC
- San Antonio, TX
- Birmingham, AL
- Cincinnati, OH
In Zillow’s framework, a home buyers market is one where the balance of supply and demand has shifted: there are more homes sitting on the market than buyers actively competing for them. That can translate into a bit more room to negotiate on price or terms, even if absolute affordability in the home buyers market remains a challenge.
Rates Retreat and Listings Pick Up
One reason the home buyers market looks a little less punishing this fall is that mortgage rates have pulled back from their peak.
The average 30‑year fixed mortgage rate, which was above 7% at the start of the year, slipped below 6.3% in October. Zillow says that drop helped spark a 5% year‑over‑year jump in both new listings and pending sales.
At the same time, prices are still rising, but much more slowly. Redfin data show the median home price in October was up 2.9% from a year earlier — the slowest annual increase since 2012.
Taken together, those trends mean more choices, slightly lower borrowing costs and a cooling price backdrop in parts of the home buyers market, even though housing is still expensive by historical standards.
Even in a Home Buyers Market, Affordability Hurts
For many households, especially first‑timers, the label “home buyers market” does not suddenly make buying easy. Prices and monthly payments remain a major hurdle.
“The biggest struggle first‑time buyers have is finding an affordable property, and many of them struggle to save for a down payment,” said Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors. “The biggest source of pain that they are citing is high rent and student loan debt.”
That reality means that even in a home buyers market, lots of renters and younger households are still on the sidelines, squeezed between high housing costs and other financial pressures.
Zillow analysts found that the typical mortgage payment in October is down 1.8% from last year, helped by slightly lower rates. But that typical payment is still 99.3% higher than it was before the pandemic — nearly double.
So while the home buyers market has become more favorable in some metros, the leap from renting to owning remains steep.
Cities With the Biggest Price Gains and Drops
Beneath the national picture, conditions in the home buyers market vary sharply from city to city. Some metros are still seeing meaningful price gains, while others are posting notable declines.
Year over year, Zillow reports the largest home value increases in:
- Cleveland (up 4.5%)
- Hartford (up 4.4%)
- Milwaukee (up 4%)
- Buffalo (up 3.7%)
- Chicago (up 3.7%)
On the other side of the ledger, the biggest annual drops in average home value were recorded in:
- Austin (down 6.1%)
- Tampa (down 6.1%)
- Miami (down 4.8%)
- Orlando (down 4.6%)
- Dallas (down 4%)
Only four large cities saw an increase in the average home value from September to November:
- San Jose (up 0.4%)
- New York (up 0.4%)
- San Francisco (up 0.1%)
- Salt Lake City (up 0.1%)
Those splits show how uneven the home buyers market can be. Some former boomtowns are now seeing prices pull back, which can offer relief to buyers. Other areas are still grinding higher, even as national growth slows.
What “Buyer’s Market” Really Means in 2025
Zillow’s list of 19 buyer‑leaning metros reflects conditions where for‑sale inventory outstrips active demand. That can mean:
- More homes to choose from
- Less intense bidding wars
- Slightly more leverage for buyers on price and contingencies
But the current home buyers market is very different from the discounted, high‑inventory markets seen after the housing crash more than a decade ago. Prices today remain historically elevated, and borrowing costs are still high compared with the pre‑pandemic era.
Even in places like Miami, Indianapolis or Milwaukee, being in a home buyers market simply means buyers have relatively more power than they did during the frenzy of the past few years — not that homes are suddenly cheap.
Outlook: A Slightly Better, But Still Tough, 2026
Looking ahead, industry economists see some modest relief, but not a dramatic reset, for the home buyers market.
The National Association of Realtors projects mortgage rates to hover around 6% in the year ahead.
“As we go into next year, the mortgage rate will be a little bit better,” said NAR Chief Economist Lawrence Yun. “It’s not going to be a big decline, but it will be a modest decline that will improve affordability.”
If that forecast plays out, slightly lower borrowing costs could line up with slower price growth to make certain corners of the home buyers market more accessible — especially in the 19 metros where buyers already have a bit more leverage.
Still, with typical payments nearly double their pre‑pandemic level and many first‑time buyers weighed down by rent and student loans, affordability will remain the defining challenge. The emerging home buyers market is, for now, more of a small opening than a full‑blown opportunity.
FAQ’s
What is a home buyers market in real estate?
A home buyers market is when there are more homes listed for sale than active buyers, giving shoppers more leverage. This usually means more inventory, longer listing times and slightly more room to negotiate on price and terms.
Which cities are currently in a home buyers market, according to Zillow?
Zillow’s latest data highlights 19 buyer-friendly markets, including Miami, Indianapolis, Milwaukee, Pittsburgh, New Orleans, Austin, Jacksonville, Tampa, Seattle, Atlanta, Houston, Charlotte, San Antonio, Birmingham and Cincinnati, among others.
Is 2025–2026 a good time to buy a home in a home buyers market?
Conditions have improved somewhat: mortgage rates have eased below about 6.3%, price growth is the slowest since 2012, and some cities are now favoring buyers. However, monthly payments remain almost double pre‑pandemic levels, so affordability is still a major hurdle.
How do mortgage rates affect the home buyers market?
Lower mortgage rates reduce monthly payments, which can pull more buyers into the market and support prices. When rates retreat, as they have recently, it can help turn overheated seller’s markets into more balanced or even buyer‑leaning markets in some cities.
