5 Key Signs Your City Just Flipped to a Buyer's Market
If you’re in the market to buy a home, it’s tempting to look at national housing data to determine where prices are headed. That’s a decent start, but it won’t tell you the whole story.
It’s better to narrow your focus to the city where you’re moving – and then narrow it down even further by neighborhood. This will give you a better idea of whether you’re moving into a buyer’s market.
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Here’s a look at how housing markets are trending, along with five signs that your city has flipped into a buyer’s market.
Shifting Momentum
For much of this decade, it wasn’t easy finding a buyer’s market anywhere in the United States.
The median price of homes sold in the U.S. rose from $327,100 in the first quarter of 2020 to $403,200 in the first quarter of 2026, according to the Federal Reserve Bank of St. Louis. That represents a gain of 23% in six years. When prices go up, it usually means the market favors sellers rather than buyers.
Prices remain historically high across the country, but there have been some encouraging signs for buyers. The average sales price continues to drift lower from its peak of $442,600 during the 2022 fourth quarter.
Meanwhile, research cited by Trading Economics shows that the inventory of available homes also moved higher during the first three months of 2026. When more homes come on the market, it’s good for buyers.
What Is a Buyer’s Market?
As the name suggests, a buyer’s market favors those who want to buy homes rather than sell them. This usually happens when there are more homes for sale than buyers in the marketplace, which can lead to better prices.
In a seller’s market, there are more buyers than sellers, which stirs greater competition and drives prices higher.
The key to finding the best deals is determining how to separate buyer’s markets from the seller’s markets.
One straightforward way to do that is to hire the right real estate agent, according to Cappy Hagman, a Realtor and broker at Coldwell Banker Howard Perry and Walston in Raleigh, North Carolina.
“Buyers need to find a buyer’s agent who really pays attention to the local trends,” Hagman said. “Some firms/agents don't bother with the data, but mine monitors it like a hawk.”
5 Signs Your City Just Flipped
Beyond hiring the right agent, there are other ways to spot a new buyer’s market. Here are five signs your market flipped into buyer’s territory.
Days on market: When homes start staying on the market longer than normal, it’s a good sign for buyers. This is particularly true during the spring, Hagman said.
Price cuts: This is perhaps the surest sign that a city flipped into a buyer’s market. When you start seeing prices go down – especially in once-hot neighborhoods – it shows that there aren’t enough buyers making offers.
Sellers offering more concessions than usual: This can come in many forms, including decorating bonuses, repair credits and closing costs being paid up-front.
Higher inventory: A balanced housing market typically has five to seven months' worth of inventory, according to Zillow. When that number goes up, it’s a sign of a buyer’s market. You can use Zillow’s home values look-up to see what inventory is like in your ZIP code.
Lower due diligence fees/earnest money: During the housing market’s “feeding frenzy” of 2022, due diligence fees were running as high as 20% of the purchase price, Hagman said. Now those fees are closer to 1% to 3% in some markets.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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