The U.S. Housing Market Is Splitting Into Four Different Markets. Which One Are You In?

“I keep hearing that it’s a good time to buy a home. Is it?”

It’s a question I hear often. But even in the same market, some buyers are purchasing with cash, while others are adjusting their budgets because of monthly mortgage payments. Some homeowners are hesitant to move because they have an existing mortgage with a much lower interest rate, while homebuilders may be offering incentives to attract buyers.

According to a September 23, 2026, article from Keeping Current Matters, these four different situations are happening simultaneously in today’s U.S. housing market. That’s why, rather than focusing only on the overall market, it’s important to first understand which situation applies to you.

1. Cash Buyers

Buyers using savings or equity from the sale of an existing home are less affected by mortgage rates. With fewer financing contingencies and less uncertainty around loan approval, they may also be able to present a more attractive offer to sellers.

That said, even cash buyers should carefully evaluate the home’s condition and make sure the price reflects its actual market value.

2. Buyers Who Need Financing

For buyers taking out a mortgage, the monthly payment can be just as important as the purchase price.

Before determining a budget, buyers should consider not only principal and interest, but also property taxes, homeowners insurance, and HOA fees. Depending on the property and market conditions, it may also be worth exploring whether the seller is willing to offer a credit or contribute toward a mortgage rate buydown.

3. Homeowners Hesitating to Move Because of Their Low Mortgage Rate

For homeowners who currently have a low mortgage rate, moving can be a difficult decision.

Instead of looking only at the difference between the current and new mortgage rates, it’s important to consider the amount of equity you would actually have after selling, the monthly payment on your next home, and why you need or want to move.

Changes in family circumstances, commute, school districts, or lifestyle can all be important factors in deciding whether moving makes sense.

4. Homebuilders Selling New Construction

Homebuilders may offer incentives depending on inventory and market conditions, including price adjustments, mortgage rate assistance, or contributions toward closing costs.

If you’re considering new construction, don’t compare homes based solely on the advertised price. Look at the total cost after incentives and compare it with similar resale properties.

For homeowners selling an existing property, it becomes even more important to highlight what makes the home competitive—such as an established neighborhood, mature landscaping, location, desirable features, or the ability to move in without waiting for construction.

The Chicago Suburbs Are No Different

In the Chicago suburbs, market conditions can vary significantly from one area to another. Naperville, Glenview, Buffalo Grove, and other popular communities can have very different levels of inventory and buyer competition.

Even within the same suburb, the market can change depending on the price range, property type, location, and condition of the home.

That’s why there isn’t one universal answer to the question, “Is this a good time to buy or sell?”

If you’re thinking about buying or selling, start by looking at your own financial situation and the most recent sales in the area you’re considering. Understanding which homes you’re competing with and where there may be room for negotiation can help you make a more informed decision.

If you’re considering a move in the Chicago suburbs, I’d be happy to review the current market data and specific properties with you.

ChicagoBDB | Sang Han