Homes Sell Below Asking in 38 US Cities

Homes sold below asking price in 38 of the 50 largest U.S. markets. Redfin data shows this trend. Buyers have more room to negotiate.

The biggest discounts are in Florida and Texas. Miami and West Palm Beach homes sold for nearly 5% less. Southern markets saw 2% to 3% discounts.

San Francisco, New York and Boston sellers get slightly more. The data covers 50 largest housing markets. June sale-to-list data is the latest available.

Only 25% of homes sell above asking nationally. This is down from 55% in 2022. The pandemic-era peak is long gone.

Why Discounts Are Growing

Higher borrowing costs reduce buyer affordability. Sellers adjust expectations slowly. This creates a pricing gap.

"Buyers notice right away when mortgage rates go up," said Redfin chief economist Daryl Fairweather. Sellers take longer to realize they need to price lower.

Some sellers bought near the 2022 peak. They have little room to cut prices. Commissions and costs eat into profits.

Florida and Texas saw a homebuilding surge. More options give buyers leverage. Rising insurance and taxes also shrink the buyer pool.

Strategies for Buyers

Negotiating room depends on the market and home. Some neighborhoods still see strong demand. Properly priced homes sell quickly.

"What we're seeing is a more balanced market," said New York broker Bill Kowalczuk. Pricing actually matters again. Multiple offers still occur.

Buyers should check sale-to-list ratios locally. Real estate listing websites provide this data. Agents can also help with research.

Homes sitting for weeks offer more negotiation room. Price cuts signal seller flexibility. New listings may still attract competition.

Negotiation extends beyond sale price. Sellers may cover closing costs or offer repairs. Cash offers strengthen a buyer's position.

"Buyers have more leverage than they did a few years ago," said Florida broker Jennifer Thayer. But they don't have all the leverage. Luxury properties still sell well.