The housing market right now is not one market. Depending on where you are looking and what you are trying to do, you could be walking into very different conditions.

Entry-level buyers are finding more homes to choose from, more motivated sellers, and more room to negotiate. Luxury buyers are facing the opposite: shrinking inventory, rising competition, and sellers who have little reason to budge on price. And for investors, the landscape has shifted significantly as large institutional players step back and new federal rules change who can buy what.

Here is what the data shows for each:

Entry-Level Homes Are An Opportunity for Buyers

One of the best times to buy a home is when other buyers are not showing up. For entry-level buyers who are financially prepared, that moment could be right now.

Entry-level homes are defined as those in the 5th to 35th percentile of home values in a given region. Nationally, the typical entry-level home is worth about $202,000.

More Homes to Choose From

Entry-level home inventory rose 4.5% year over year in June, while luxury home inventory fell 5.2%. In plain terms: the supply of entry-level homes is growing while the supply of luxury homes is shrinking. Buyers in the entry-level range have more options today than they did a year ago, while buyers at the top of the market are competing over fewer homes. (Zillow Research)

Sellers Are More Willing to Deal

Entry-level home sales fell 5.4% year over year in May, while luxury home sales grew 6.2%. Fewer buyers showing up means sellers have to work harder to close a deal. That translates directly into more negotiating room for buyers who are ready to move. (Zillow Research)

Price Cuts Are More Common

One in four entry-level homes had a price cut in June, compared to just one in five luxury listings. Sellers are adjusting their asking prices to attract buyers rather than holding firm and waiting. For a prepared buyer, that means a better starting point before negotiations even begin. (Zillow Research)

Buying a Home Has Statistically Become More Affordable

The opportunity at the entry level is not just about more homes and more motivated sellers. The financial picture has also shifted in buyers' favor.

Monthly Payments Are Down

The median monthly payment on a new mortgage application fell to $2,191 in June, down from $2,198 in May. For buyers using an FHA loan, that number was even lower at $1,872. (MBA Purchase Applications Payment Index)

Incomes Are Up

At the same time, household earnings grew 4.6% over the past year. (MBA Purchase Applications Payment Index)

That Combination Can Make Homebuying More Attainable

When payments go down and incomes go up at the same time, a mortgage payment takes up a smaller slice of what you bring home each month. That means more buying power for the same budget. The shift is moving in the right direction for buyers.

Competition is Still Hot at the Top of the Market

The luxury market — homes in the top 5% of home values in a given region with a national median of about $1.9 million — is telling the opposite story.

Luxury Inventory Is Shrinking

While entry-level inventory is growing, luxury home inventory fell 5.2% year over year in June. Fewer luxury homes are hitting the market at the same time demand is rising. That is a recipe for competition. (Zillow Research)

Luxury Sales Are Up

Luxury home sales grew 6.2% year over year, while entry-level sales fell 5.4%. The buyers driving that demand tend to be higher-income households whose purchasing power has been bolstered by strong stock market gains. They are less sensitive to mortgage rates and more likely to move forward regardless of market conditions. (Zillow Research)

Price Cuts Are Less Common

Only one in five luxury listings had a price cut in June, compared to one in four entry-level homes. Luxury sellers have less pressure to negotiate because demand is holding strong. Buyers at this price point are facing a more competitive environment with less room to negotiate on price or terms. (Zillow Research)

Investor Competition Has Changed

For years, large corporate investors were buying up thousands of homes at a time. That has changed.

Federal Rules Changed the Game

The shift went even further following new federal rules. Under the 21st Century Road to Housing Act, investors who already own more than 350 single-family homes can no longer buy additional properties from existing housing stock. Large investors have since been selling more homes than they buy. (Inc., July 2026)

Small Investors Now Dominate

Roughly 534,000 homes were purchased by investors in 2025, a slight increase year over year. But today, 96% of investor-owned single-family homes belong to small investors — people who own between one and ten properties. Large institutional investors own roughly 2.2% of all single-family homes nationally. (TRD Data)

For small investors who held back because of competition from big corporate investors, that competition has largely stepped aside.

See an Opportunity? Let's Use It.

The data points to opportunity for everyday borrowers. More inventory at the entry level. More motivated sellers. Payments consuming a smaller share of income than a year ago. Less institutional competition for investors. Borrowers in the luxury market are facing a bit more competition and may require a different approach.

If you want to know what this market means for your specific situation, fill out the form below to get in touch and we'll help you figure out the right next step.