What defines a buyer's market versus a seller's market?

A buyer's market typically features more homes for sale than buyers, giving buyers more power in negotiations and more options. A seller's market has fewer homes available than buyers, leading to increased competition and often higher prices. Primpted Research categorizes markets using a proprietary framework that considers inventory levels, sales pace, and other demand indicators.

How do interest rates affect the housing market if there's more inventory?

Even with an increase in available homes (inventory), high interest rates can significantly impact buyer affordability. A higher interest rate means a larger monthly mortgage payment for the same loan amount, effectively reducing a buyer's purchasing power and ability to qualify for a loan. This can lead to decreased demand, despite more supply, as fewer buyers can afford the homes on the market.

How does the national average for the Buyer Demand Index compare to previous months?

The national Buyer Demand Index has shown a noticeable cooling trend over recent months. While specific numerical comparisons require monthly data, the current market conditions reflect a more balanced environment, a significant change from the highly competitive demand seen in earlier periods. This sustained moderation indicates that buyers have more leverage than before, but affordability remains a key factor in converting interest to sales.

← Briefings

⚡ Market AlertNational· Market AlertAugust 20, 2026By Amy Gerrish · Housing Market Analyst3 min read

75% of U.S. Housing Markets Are Cooling: Here's What That Means

High interest rates continue to temper purchasing power even though the majority of U.S. metros now offer buyer-friendly conditions.

What happened

For the first time in several years, the U.S. housing market has largely tipped in favor of buyers. Nearly three-quarters of metropolitan areas, or 74% of the metros we track, are now categorized as either a balanced market or a buyer's market. This marks a significant rebalancing from the intense seller's markets that characterized recent years. Just one-quarter of metros still meet the seller's-market threshold.

However, this shift doesn't necessarily signal a surge in home purchases. High interest rates and sustained cost-of-living increases continue to hinder prospective buyers, keeping overall demand in check. While metros like Chicago and Omaha boast an impressive 85% Sold Score, reflecting an "Excellent Chance of Selling," others, such as Sevierville, TN, and McAllen, TX, struggle with Sold Scores as low as 20 and 23, indicating "Difficult Selling Environments." The national Buyer Demand Index (BDI), which measures pending contract activity relative to new listings, hovers around 35-40% in many metros, significantly lower than the levels seen during peak demand.

Why it matters

The broad rebalancing of the U.S. housing market offers a mixed picture for participants. Buyers now face less competition and more inventory, providing greater negotiation power and a wider selection of homes. For instance, inventory has risen significantly in places like Minneapolis (+29.28% YoY) and Seattle (+21.42% YoY), giving buyers more options. However, even with more homes available and prices declining year-over-year in many areas, such as Los Angeles (-4.48% YoY) and Miami (-2.93% YoY), the affordability challenge persists. Elevated mortgage rates mean the total cost of homeownership remains a significant barrier for many, keeping the Buyer Demand Index from accelerating.

Sellers, particularly in previously hot markets, may need to adjust their expectations. The days of multiple offers above asking price are largely behind us, and metros with low Sold Scores, like Las Vegas (32) and Denver (39), show that properties are taking longer to sell, and price reductions are more common. The shift away from a dominant seller's market means that pricing strategies and home preparation are more critical than ever for attracting a shrinking pool of qualified buyers.

What to watch

We're closely monitoring several key indicators that will shape the market's trajectory in the coming months:

Buyer Demand Index:* Watching if the national BDI rises above 40%

Inventory Levels:* Tracking significant dips or surges in total active listings

Interest Rates:* Observing any sustained changes in mortgage rates

Price Trends:* Looking for stabilization or acceleration in price declines

Frequently Asked

What readers ask about this market

Methodology

Primpted Research combines publicly available housing market data, demographic information, economic indicators, public records, and proprietary analysis to identify housing market trends. Our research incorporates data from sources including Realtor.com® Economic Research, the Federal Reserve Bank of St. Louis (FRED), the U.S. Census Bureau, and other public datasets, together with Primpted's own methodology.

The Pending Ratio measures the relationship between homes under contract and homes actively listed for sale, providing an indicator of current buyer demand.

The Sold Score is Primpted's proprietary market strength indicator. It combines multiple housing market signals—including pending activity, inventory trends, days on market, and price reductions—to estimate the relative strength of seller conditions within a local market.