Expanding Buyer Markets Offer New Opportunities Despite Challenges

Buyers are gaining negotiating power in more US markets, with two-thirds of metros favoring buyers or trending that way. However, mortgage rates rising above 7% are reducing affordability, cutting purchasing power by over 7%. Higher rates mean the same monthly budget buys a lower-priced home, limiting actual affordability despite better market leverage. The South has most buyer’s markets, while supply constraints and costs keep many buyers sidelined.