Realtor.com® Market Clock® Report: Buyers Gain Ground as Mortgage Rates Top 7%

The Midwest has 16 of its 18 metros in seller territory, while the South holds 14 of the country's 17 buyer markets.

Rhea-AI Summary

Realtor.com (NWS) released its Market Clock report showing U.S. housing conditions shifting toward buyers while higher mortgage rates reduce purchasing power. The national reading moved to 4 o'clock, late balanced and loosening, from 3 o'clock last quarter. About two-thirds of metros favor buyers or are moving that way.

Mortgage rates rose from 6.66% in late August to 7.40% on October 8. For a buyer with a $2,000 monthly principal-and-interest budget, purchasing power fell 7.2%, equivalent to more than $22,000 less in home price. The readings combine inventory, recorded transactions and sales projections based on contract activity through September 2026.

News Explained

The regional breakdown is divided: 16 of the Midwest’s 18 metros are in seller’s territory, while the South accounts for 14 of the country’s 17 buyer’s markets, so the national shift toward buyers is not uniform.

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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.

Geography	Clock Hour	Definition
United States (national)	4	Late Balanced (loosening)
Hartford-West Hartford-East Hartford, CT	12	Peak Seller
Akron, OH	1	Late Seller
Albuquerque, NM	1	Late Seller
Allentown-Bethlehem-Easton, PA-NJ	1	Late Seller
Boise City, ID	1	Late Seller
Chicago-Naperville-Elgin, IL-IN	1	Late Seller
Cincinnati, OH-KY-IN	1	Late Seller
Cleveland, OH	1	Late Seller
Columbus, OH	1	Late Seller
Dayton-Kettering-Beavercreek, OH	1	Late Seller
Detroit-Warren-Dearborn, MI	1	Late Seller
Grand Rapids-Wyoming-Kentwood, MI	1	Late Seller
Harrisburg-Carlisle, PA	1	Late Seller
Indianapolis-Carmel-Greenwood, IN	1	Late Seller
Kansas City, MO-KS	1	Late Seller
Madison, WI	1	Late Seller
Milwaukee-Waukesha, WI	1	Late Seller
Omaha, NE-IA	1	Late Seller
Richmond, VA	1	Late Seller
Rochester, NY	1	Late Seller
San Francisco-Oakland-Fremont, CA	1	Late Seller
San Jose-Sunnyvale-Santa Clara, CA	1	Late Seller
Scranton--Wilkes-Barre, PA	1	Late Seller
St. Louis, MO-IL	1	Late Seller
Toledo, OH	1	Late Seller
Virginia Beach-Chesapeake-Norfolk, VA-NC	1	Late Seller
Wichita, KS	1	Late Seller
Baltimore-Columbia-Towson, MD	2	Early Balanced (loosening)
Buffalo-Cheektowaga, NY	2	Early Balanced (loosening)
El Paso, TX	2	Early Balanced (loosening)
Louisville/Jefferson County, KY-IN	2	Early Balanced (loosening)
Minneapolis-St. Paul-Bloomington, MN-WI	2	Early Balanced (loosening)
New Haven, CT	2	Early Balanced (loosening)
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD	2	Early Balanced (loosening)
Sacramento-Roseville-Folsom, CA	2	Early Balanced (loosening)
San Diego-Chula Vista-Carlsbad, CA	2	Early Balanced (loosening)
Winston-Salem, NC	2	Early Balanced (loosening)
Worcester, MA	2	Early Balanced (loosening)
Birmingham, AL	3	Balanced (loosening)
Dallas-Fort Worth-Arlington, TX	3	Balanced (loosening)
Durham-Chapel Hill, NC	3	Balanced (loosening)
Greensboro-High Point, NC	3	Balanced (loosening)
Los Angeles-Long Beach-Anaheim, CA	3	Balanced (loosening)
Pittsburgh, PA	3	Balanced (loosening)
Providence-Warwick, RI-MA	3	Balanced (loosening)
Stockton-Lodi, CA	3	Balanced (loosening)
Syracuse, NY	3	Balanced (loosening)
Tulsa, OK	3	Balanced (loosening)
Urban Honolulu, HI	3	Balanced (loosening)
Washington-Arlington-Alexandria, DC-VA-MD-WV	3	Balanced (loosening)
Atlanta-Sandy Springs-Roswell, GA	4	Late Balanced (loosening)
Augusta-Richmond County, GA-SC	4	Late Balanced (loosening)
Austin-Round Rock-San Marcos, TX	4	Late Balanced (loosening)
Charleston-North Charleston, SC	4	Late Balanced (loosening)
Charlotte-Concord-Gastonia, NC-SC	4	Late Balanced (loosening)
Chattanooga, TN-GA	4	Late Balanced (loosening)
Denver-Aurora-Centennial, CO	4	Late Balanced (loosening)
Des Moines-West Des Moines, IA	4	Late Balanced (loosening)
Fresno, CA	4	Late Balanced (loosening)
Houston-Pasadena-The Woodlands, TX	4	Late Balanced (loosening)
Jacksonville, FL	4	Late Balanced (loosening)
Knoxville, TN	4	Late Balanced (loosening)
Las Vegas-Henderson-North Las Vegas, NV	4	Late Balanced (loosening)
Little Rock-North Little Rock-Conway, AR	4	Late Balanced (loosening)
Memphis, TN-MS-AR	4	Late Balanced (loosening)
Oklahoma City, OK	4	Late Balanced (loosening)
Oxnard-Thousand Oaks-Ventura, CA	4	Late Balanced (loosening)
Phoenix-Mesa-Chandler, AZ	4	Late Balanced (loosening)
Portland-South Portland, ME	4	Late Balanced (loosening)
Portland-Vancouver-Hillsboro, OR-WA	4	Late Balanced (loosening)
Raleigh-Cary, NC	4	Late Balanced (loosening)
Salt Lake City-Murray, UT	4	Late Balanced (loosening)
San Antonio-New Braunfels, TX	4	Late Balanced (loosening)
Seattle-Tacoma-Bellevue, WA	4	Late Balanced (loosening)
Spokane-Spokane Valley, WA	4	Late Balanced (loosening)
Tucson, AZ	4	Late Balanced (loosening)
Bakersfield-Delano, CA	5	Early Buyer
Baton Rouge, LA	5	Early Buyer
Colorado Springs, CO	5	Early Buyer
Lakeland-Winter Haven, FL	5	Early Buyer
McAllen-Edinburg-Mission, TX	5	Early Buyer
Riverside-San Bernardino-Ontario, CA	5	Early Buyer
Greenville-Anderson-Greer, SC	6	Peak Buyer
Nashville-Davidson--Murfreesboro--Franklin, TN	6	Peak Buyer
Cape Coral-Fort Myers, FL	7	Late Buyer
Columbia, SC	7	Late Buyer
Deltona-Daytona Beach-Ormond Beach, FL	7	Late Buyer
Miami-Fort Lauderdale-West Palm Beach, FL	7	Late Buyer
New Orleans-Metairie, LA	7	Late Buyer
North Port-Bradenton-Sarasota, FL	7	Late Buyer
Orlando-Kissimmee-Sanford, FL	7	Late Buyer
Port St. Lucie, FL	7	Late Buyer
Tampa-St. Petersburg-Clearwater, FL	7	Late Buyer
Albany-Schenectady-Troy, NY	8	Early Balanced (tightening)
Kiryas Joel-Poughkeepsie-Newburgh, NY	8	Early Balanced (tightening)
Palm Bay-Melbourne-Titusville, FL	8	Early Balanced (tightening)
Boston-Cambridge-Newton, MA-NH	9	Balanced (tightening)
Bridgeport-Stamford-Danbury, CT	9	Balanced (tightening)
New York-Newark-Jersey City, NY-NJ	9	Balanced (tightening)
Jackson, MS		No reading (withheld this quarter)

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, press@realtor.com

View original content:https://www.prnewswire.com/news-releases/realtorcom-market-clock-report-buyers-gain-ground-as-mortgage-rates-top-7-302911642.html

SOURCE Realtor.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What does Realtor.com's latest Market Clock report show about buyer leverage?

The national Market Clock moved to 4 o'clock, meaning late balanced conditions loosening toward buyers, from 3 o'clock last quarter. About two-thirds of metros now favor buyers outright or are moving in that direction.

How did higher mortgage rates affect purchasing power in Realtor.com's report?

A buyer with a $2,000 monthly principal-and-interest budget lost 7.2% in purchasing power as mortgage rates rose from 6.66% in late August to 7.40% on October 8. That equates to more than $22,000 less in home price.

Why was Jackson, Mississippi, excluded from Realtor.com's Market Clock report?

Jackson, Mississippi, was excluded this quarter because of a county-level gap in transaction records. The tables and figures cover 99 metros plus the national reading.

Why might historical Realtor.com Market Clock readings differ from earlier reports?

Historical readings were restated on the same methodological basis as the latest readings for consistency. Some past values may therefore differ slightly from those published in the Q1 and Q2 reports.