Homebuyer demand is plunging across the U.S. housing market heading into 2027. According to Zillow-owned ShowingTime, home showings were down 8% from the first week of the year through early October, compared with an 18% increase at the same point last year. Meanwhile, mortgage rates have surged back toward 7.5%, and housing inventory has climbed above 1 million listings nationwide.
The result? More sellers are cutting prices, taking losses, and struggling to attract buyers.
I’m touring a neighborhood in Nashville, Tennessee, where homeowners are already feeling the downturn. One property purchased for $505,000 in 2023 is now listed for $459,000—a $46,000 loss before realtor commissions and closing costs. Another home purchased for $580,000 in 2023 is listed for $550,000, despite selling for just $312,000 back in 2016.
These examples reveal a bigger problem in the housing market: even after price cuts, many homes remain unaffordable relative to local incomes. A house listed for $697,000 could cost nearly $4,900 per month to purchase, despite previously being offered for rent at just $2,900 per month.
And that raises an important question: Are mortgage rates causing the housing slowdown, or are home prices simply too high?
Looking at 130 years of housing market history, inflation-adjusted home prices are at record highs, even above the 2006 housing bubble. Mortgage rates around 7% aren’t historically unusual, but today’s combination of elevated prices and borrowing costs is keeping buyers on the sidelines.
In this video, I break down:
• Why Zillow ShowingTime data signals a major decline in buyer demand
• How housing inventory has surged while mortgage rates approach 7.5%
• Nashville homeowners taking $30,000–$46,000 losses on recent purchases
• Why high home prices may be a bigger problem than mortgage rates
• How buying versus renting reveals overpriced listings
• Why sellers may face further price cuts heading into 2027
• My strategy for negotiating well below asking price
For buyers, the downturn is creating opportunities—but getting a good deal requires more than simply offering a low price. In one Nashville example, Reventure’s Listing Analyzer estimated a fair offer around $550,000 on a property listed for $697,000.
I also explain how I negotiated a $160,000 discount on a home earlier this year, including how to approach listing agents, demonstrate financial credibility, and handle counteroffers without overpaying.
To help buyers navigate this market, I’ve released the FREE Reventure Negotiation Handbook, covering how to identify motivated sellers, structure offers, and negotiate confidently.
Access the free handbook through the banner at https://www.reventure.app, and explore our home price forecasts and Listing Analyzer before making your next offer.
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