The U.S. housing market is cooling after several years of relentless competition. Latest data show that national median home prices increased only about 1.7 % year‑over‑year in September 2025 to $435,331 and that 4.6 months of inventory were available in September. More importantly, the pace at which homes are added to the market is outpacing sales: more than 2 million homes were for sale in September, a 9.9 % increase over the previous year. The result is that several metropolitan areas now have more than six months of supply, tipping them from seller‑dominated to buyer‑friendly territory—a shift that creates opportunities for investors.
In this article we’ll explore why more metros are becoming buyer’s markets, where the trend is strongest, and how investors can benefit using the Sell2Rent platform. We also define critical metrics—cap rate, cash‑on‑cash return and comparative market analysis—to help you evaluate opportunities in this changing landscape.
More Cities Enter Buyer’s Market Territory
Recent industry data shows that the number of large metros with buyer‑friendly conditions has grown significantly. Early in the summer, seven of the 50 largest markets—including Miami, Austin (TX) and Orlando (FL)—crossed the six‑month supply threshold. By August the list had swelled to eleven, adding Denver (CO), Nashville (TN), Raleigh (NC) and Houston (TX)
The months‑of‑supply metric measures how long it would take for all listed homes (including those under contract) to sell at the current sales pace; more than six months signals a buyer’s market.
Why are these markets shifting? Economists attribute it to a surge in housing inventory and slower buyer demand. For example:
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Denver began the summer with 4.9 months of supply but ended August with 6.1 months, thanks to a 64 % increase in for‑sale homes compared with six years ago.
Local agents note that buyers now have more properties to choose from and can negotiate concessions such as temporary rate buy‑downs
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Nashville’s supply jumped from 5.8 months in June to 6.4 months in August, while new listings rose more than 20 % year‑over‑year. Homes also sat on the market longer—about three weeks more than a year earlier, which gave buyers leverage to negotiate price cuts and seller concessions.
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Raleigh entered buyer‑market status when its supply reached 6.1 months, up from 5.6 two months earlier. It recorded the third‑highest annual inventory growth among the 50 largest markets.
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Houston crossed the six‑month mark as summer ended; supply climbed from 5.7 months in June to over six months. Analysts note that affordability challenges and high interest rates kept buyers on the sidelines, causing inventories to build.
Notably, market observers point out that—except New York City—the buyer’s markets are concentrated in the South and West, where inventory expanded rapidly and homes lingered on the market.
National Housing Market Trends (2025)
The national picture helps explain why more metros are tilting toward buyers:
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Home prices: Median U.S. home prices in September 2025 were $435,331, only 1.7 % higher than a year earlier. Slowing price growth answers the question many people ask—“Are home prices dropping?”—with a nuanced “not yet, but growth has stalled.”
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Sales volume: About 442,578 homes sold in September, a 7.4 % increase year‑over‑year, suggesting pent‑up demand when prices moderate.
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Mortgage rates: The national average 30‑year fixed rate was 6.4 %. Falling rates have started to lift existing‑home sales; a major trade association reported that September sales rose 1.5 % from the previous month.
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Inventory: There were 2,092,513 homes for sale in September 2025, up 9.9 % from a year earlier. Fresh listings edged up only 0.8 %, indicating that existing homes comprise most of the supply The average months of supply nationwide remains around 3 months, so markets with six months of supply have significantly more inventory.
These figures illustrate a market that is normalizing after years of undersupply. Rising supply and slowing price appreciation signal potential opportunities for investors who can identify market value, negotiate favorable terms and lock in stable cash flow.
Key Investment Metrics: Cap Rate, Cash‑on‑Cash Return and CMA
Understanding a property’s potential return is critical, especially in a changing market. Three metrics are particularly useful. While many educational resources exist online, MyRealEstateAnalytics aggregates data and explains these concepts in one place, making it easy for Sell2Rent investors to perform due diligence.
Cap Rate
The capitalization rate (cap rate) is a widely used valuation shortcut. It is calculated by dividing a property’s stabilized Net Operating Income (NOI) by its market value. MyRealEstateAnalytics provides calculators and tutorials to help you determine an asset’s NOI and compare it to current purchase prices. For example, if a property generates $100,000 in annual NOI and sells for $1 million, the cap rate is 10 %. Cap rates help investors compare prices across different properties; higher cap rates imply lower prices relative to income, while lower cap rates indicate premium pricing. To compute a cap rate:
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Determine the property’s annual stabilized NOI using historical and projected rental data (available through tools like MyRealEstateAnalytics).
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Find the current market value or purchase price through comparable sales and local listings.
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Divide NOI by market value to get the cap rate percentage.
Cash‑on‑Cash Return
Cash‑on‑cash return (also called cash yield) measures annual pre‑tax cash flow relative to the cash invested in a property. MyRealEstateAnalytics’ investment calculators take into account rental income, operating expenses and financing costs to generate a realistic cash‑on‑cash return. To calculate it:
Cash‑on‑Cash Return = Net Annual Cash Flow (before tax) ÷ Total Equity Invested.
For example, if an investor has $80,000 of equity in a rental and the property generates $22,800 in net cash flow, the cash‑on‑cash return is 28.5 %. While returns vary, many investors target 8–12 %. Cash‑on‑cash focuses on current cash flow and doesn’t capture the overall internal rate of return, so you can use MyRealEstateAnalytics to model long‑term scenarios and forecast future cash flows.
Comparative Market Analysis (CMA)
A comparative market analysis (CMA) estimates a property’s value by comparing it with recently sold homes that have similar characteristics. MyRealEstateAnalytics offers detailed reports that analyze comps based on location, size, condition and special features to determine whether a listing price is reasonable. While CMAs are usually prepared by real estate professionals, investors can also conduct their own research using tools like MyRealEstateAnalytics. When combined with cap rate and cash‑on‑cash return, a CMA gives investors a comprehensive view of a property’s market value and potential profitability.
City and State Trends to Watch
Many of the new buyer’s markets highlighted above are located in states with no state income tax and relatively low property taxes—features that appeal to investors. Nashville, for example, benefits from a low unemployment rate, low property taxes and no personal state income tax. The region’s lifestyle amenities and vibrant cultural scene are additional draws.
Beyond buyer‑market metros, several fast‑growing cities continue to experience rising sales prices. Redfin’s September 2025 report lists Buffalo, NY (26.9 %), Honolulu, HI (24.5 %), Arlington, VA (18.8 %), Toledo, OH (18.8 %) and Columbus, GA (18.3 %) among the top ten metros with the fastest‑growing sales prices. Fast‑growing states—particularly Texas and Florida—benefit from strong population growth, job creation and business‑friendly tax policies, factors that support long‑term housing market strength.
Best Time of Year to Buy a House
As markets become more balanced, seasonality matters again. Agents in Nashville note that fall is a sweet spot—competition eases, motivated sellers remain and well‑located homes offer strong long‑term value. Historically, late autumn and winter can provide deals because fewer buyers are shopping and sellers may be eager to close before year‑end. Buyers who monitor market trends and act during slower seasons may secure better prices or concessions, making it an attractive time of year to buy a house.
Is Real Estate Still a Good Investment?
Despite slower price growth, real estate remains a compelling asset class. It offers tangible assets, potential appreciation, tax advantages and the ability to generate passive income. With many markets transitioning to a buyer’s market, investors may be able to purchase properties at more attractive prices and negotiate terms that were unavailable during the seller‑dominant years. Using metrics like cap rate, cash‑on‑cash return and CMA helps investors identify opportunities that balance risk and return. When combined with careful analysis of household income percentiles, local housing prices, market value and housing inventory, investors can build resilient portfolios.
How Sell2Rent Helps Investors Capitalize on Buyer’s Markets
Sell2Rent is uniquely positioned to help investors take advantage of the current housing market trends. The platform matches homeowners who want to unlock their home equity without moving with investors seeking stable rental properties. Here’s why Sell2Rent is attractive:
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Immediate Tenants – Investors purchase a property where the seller becomes the tenant, eliminating vacancy risk and ensuring cash flow from day one.
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Diversified Portfolio – Properties are located across multiple states; investors can analyze city trends, market insights and housing inventory to build a balanced portfolio.
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Transparent Metrics – Sell2Rent provides detailed data to help investors evaluate cap rate, cash‑on‑cash return and market value, and you can perform your own CMA using resources like MyRealEstateAnalytics for deeper state‑level insights.
Ready to Get Started?
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Register to start investing: Sign up on the Sell2Rent platform and explore available properties here.
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Learn more about the Sell2Rent model: Discover how selling and renting back can expand your portfolio and provide immediate cash flow here.
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Access state‑level market data: Use MyRealEstateAnalytics to analyze housing statistics, economic indicators and demographic trends before investing.
Final Thoughts
As more metros shift into buyer’s market territory, investors have a unique window to acquire properties with greater negotiating power. Rising inventory, moderating housing prices and slower sales allow buyers to shop more deliberately, conduct thorough due diligence and secure favorable terms. By understanding key metrics like cap rate, cash‑on‑cash return and comparative market analysis, you can identify opportunities that align with your investment goals.
Sell2Rent makes it easier to capitalize on these conditions, offering properties with built‑in tenants and the data you need to make informed decisions. Whether you’re seeking growth in fast‑growing cities or stable returns in low‑tax states, now may be the best time to buy a house and expand your real estate portfolio.
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