Homes are selling below asking price in over 40 major U.S. cities, a shift that hands negotiating power back to buyers after years of heated competition.
This trend marks a reversal from the pandemic boom when bidding wars drove prices well above list amounts. Today's market favors purchasers willing to make offers and negotiate terms. Sellers increasingly accept lower prices rather than wait indefinitely for buyers in slowing markets.
The below-asking-price pattern hits hardest in cities where inventory has built up faster than demand. Markets like Austin, Denver, Phoenix, and Portland show consistent patterns of price reductions. Sellers who refuse to adjust expectations face longer time-on-market periods, which typically leads to steeper eventual discounts anyway.
For buyers, this environment offers real opportunities. You can submit offers below asking and expect serious consideration. You can also push back on inspection requests, appraisal gaps, and closing costs. Sellers desperate to close deals often accommodate multiple contingencies that would have been rejected flat during the boom years.
The specific discount varies by market and property condition. Some homes sell 5% below asking. Others drop 10-15%. Luxury properties and homes in oversupplied neighborhoods see deeper cuts.
Mortgage rates remain elevated compared to pandemic lows, which dampens buying power even as prices soften. A buyer approved for a $400,000 mortgage at 3% can afford roughly $1.3 million in home value. That same buyer at 6.5% rates can afford only $615,000. Rates matter as much as price.
This buyer-friendly environment won't last forever. As inventory tightens or rates drop, sellers regain leverage. Buyers shopping now should act on reasonable offers. Homes that sell below asking today may bounce back to asking or above once market conditions shift again.