On average, U.S. homes purchased during a four-week period in August 2022 sold for less than the asking price. – Years of soaring home prices and sharply higher mortgage rates remain hurdles for many would-be homebuyers, but new data shows that they're regaining some leverage at the negotiating table as the housing market slows.
“The only times you get homes going above list price is when there’s a bidding war, and those used to not be a regular occurrence,” said Daryl Fairweather, Redfin’s chief economist. “And we’re back to a place where bidding wars are unusual, not the norm.” That remained the prevailing trend until recently, even though the housing market has cooled significantly since the spring as mortgage rates surged sharply above where they were last year. Higher mortgage rates make homes less affordable, thinning out the pool of home hunters, which leaves sellers with less leverage when negotiating with buyers.
That the typical home is now selling for below the asking price is a sign that the housing market is becoming a bit more balanced, or less skewed, toward sellers.