Housing Market Shifts: Homes Sell Below Asking Price for First Time Since Pandemic, Prices Cool and Buyers Gain Power

United States of America
Buyers may be able to negotiate on middle-of-the-road listings that have been on the market for a while.
Cooling trend in home prices evident across various markets such as Phoenix and Los Angeles.
Housing market shifts with homes selling below asking price for the first time since pandemic.
Median sale price up nearly 5% as of June 23, reaching nearly $400,000.
Sellers reducing prices by about 7%, compared to a decrease of 4.7% last year.
Two-thirds of homes still sold over asking price, but lowest share since June 2020.
Typical U.S. home sold for 0.3% less than asking price in June 2024.
Housing Market Shifts: Homes Sell Below Asking Price for First Time Since Pandemic, Prices Cool and Buyers Gain Power

In recent months, the housing market has seen a shift in trends as home prices begin to cool and buyers gain more negotiating power. According to multiple reports, homes are now selling below their asking price for the first time since the pandemic began.

The real estate platform Redfin reported that during the four weeks ending June 23, 2024, the typical U.S. home sold for 0.3% less than its asking price. This marks a significant change from previous years when homes typically sold at or above their list prices.

Two-thirds of homes still sold over asking price in the last month, but this is the lowest share since June 2020. Sellers have been reducing prices by about 7%, compared to a decrease of 4.7% last year.

The housing market has been characterized by high home prices and expensive mortgage loans, which have deterred many buyers from entering the market. The median sale price was up nearly 5% as of June 23 compared to a year ago, reaching nearly $400,000. Mortgage rates have hovered near 7%, elevating monthly payments.

However, with more supply coming onto the market and demand easing slightly, buyers may be able to negotiate on middle-of-the-road listings that have been on the market for a while. Sellers should also be cautious not to overprice their homes in this changing market.

The cooling trend in home prices is evident across various markets. For instance, Phoenix saw its median sale price drop by 1% from May to June, and Los Angeles reported a decrease of 0.8%. Marije Kruythoff, a Redfin Premier agent based in Los Angeles, advised buyers and sellers to temper their expectations when looking to purchase or list homes in the current market.

Despite the recent shift in trends, it is important to note that inventory remains low compared to pre-pandemic levels. Total active listings are up 35% from a year ago, but they are still down more than 30% from typical levels before the pandemic.

Overall, these developments suggest that the housing market is experiencing some relief for buyers as prices begin to cool and sellers become more willing to negotiate. However, it remains to be seen how long this trend will last and what impact it will have on the broader real estate market.


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Confidence

91%

Doubts
  • Are there any specific reasons why sellers are becoming more willing to negotiate?
  • Is the inventory level still a concern for buyers?

Sources

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

This decades-long trend in home prices has been 'flipped on its head' amid a big shift in the housing market

Fortune Media Inc. Jason Ma Sunday, 30 June 2024 00:00
  • Unique Points
    • Since the mid-1980s, new homes typically commanded a price premium over existing homes.
    • The number of homes under $200,000 has gone from around half of all sales to less than a quarter of sales in 2023.
  • Accuracy
    • The median sales price for an existing home jumped 5.8% from a year ago to a fresh record-high of $419,300 in May.
    • The median sales for a new home fell 0.9% from a year earlier to $417,400.
    • Median sale prices are up 4.9% year over year.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

93%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Housing Market Takes a Turn for Buyers

Newsweek LLC Omar Mohammed Friday, 28 June 2024 17:32
  • Unique Points
    • The U.S. housing market is showing signs of relief for buyers as homes sold below the asking price for the first time since 2020.
    • Buyers were able to purchase a home at 0.3% less than the asking price in the four weeks ending June 23, according to Redfin.
    • Sellers have been reducing prices by about 7%, compared to a decrease of 4.7% last year.
  • Accuracy
    • The median sale price increased nearly 5% as of June 23 compared to the previous year, reaching close to $400,000.
    • Median home sale prices are up 4.9% year over year and median monthly mortgage payments have increased by 7.5% from their all-time high set during the four weeks ending April 28, 2024.
    • Home prices are now approximately 47% higher than they were in early 2020, with the median sale price five times the median household income.
  • Deception (80%)
    The article provides factual information about the housing market and does not contain any editorializing or pontification from the author. The author is reporting on data from Redfin regarding home sales prices and trends. However, there are instances of selective reporting as the article only reports on the decrease in home sale prices and increase in sellers dropping their prices, while omitting mention of the fact that home sales are also down and listings are up. This creates a misleading impression that buyers have more bargaining power than they actually do. The article also contains sensational language such as 'buyers could see some relief' and 'growing likelihood that homes sell below asking price', which may manipulate the emotions of readers.
    • The market is seeing more supply of homes than demand amid elevated prices and expensive mortgage loans.
    • Buyers were able to purchase a home over the last four weeks at a 0.3 percent less than the asking price,
    • Some buyers think they can get a deal because they’re hearing the market is cool,
    • Three of the five cities with the most new listings were in California–San Jose, San Diego and Anaheim.
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

88%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

The Typical Home Is Selling For Less Than List Price, the First Time That Has Happened in Late Spring Since Start of Pandemic

Redfin Corporation Dana Anderson Thursday, 27 June 2024 12:00
  • Unique Points
    • The typical U.S. home sold for 0.3% less than its asking price in the four weeks ending June 23, marking the first time it has sold under list price this time of year since the pandemic.
    • Nearly two-thirds (32.3%) of U.S. homes sold over asking price during that period, the lowest share since the pandemic.
    • Sellers should not overprice their homes and buyers may be able to negotiate on middle-of-the-road listings that have been on the market for a while.
  • Accuracy
    • The likelihood of homes selling below asking price is rising due to more supply than demand in certain parts of the country.
  • Deception (70%)
    The article makes several statements that could be considered misleading or potentially deceptive. First, the author states that 'The typical U.S. home that sold during the four weeks ending June 23 sold for 0.3% less than its asking price.' This statement is not entirely accurate as it implies that all homes sold for less than their asking price, when in fact only a small percentage did. The author also states that 'Nearly 7% of home sellers dropped their asking price, on average,' which could be seen as an attempt to manipulate the reader's emotions by implying that a large number of sellers are having to lower their prices due to market conditions. Additionally, the article makes several references to record-breaking heat being a reason for buyers not being active in the market. While this may be true, it is not explicitly stated that there is any correlation between the heat and the decrease in sales or increase in homes sitting on the market without going under contract. This could potentially lead readers to believe that there is a causal relationship between the two when none may exist.
    • The typical U.S. home that sold during the four weeks ending June 23 sold for 0.3% less than its asking price.
    • Nearly 7% of home sellers dropped their asking price, on average.
    • Record-breaking heat is another reason some buyers have taken a backseat recently.
  • Fallacies (85%)
    The article contains some inflammatory rhetoric and appeals to authority, but no formal or informal fallacies were found. The author states that “Record-breaking heat is another reason some buyers have taken a backseat recently.” This is an appeal to authority as the author cites personal experiences of real estate agents without providing evidence for the claim. Additionally, phrases such as “the growing likelihood that homes sell below asking price, along with the high share of sellers dropping their prices” and “Record-breaking heat is another reason some buyers have taken a backseat recently.” are inflammatory and emotive. However, these instances do not rise to the level of formal logical fallacies.
    • The growing likelihood that homes sell below asking price, along with the high share of sellers dropping their prices...
    • Record-breaking heat is another reason some buyers have taken a backseat recently.
    • The likelihood of homes selling below asking price is rising because there’s more supply than demand...
  • Bias (95%)
    The author expresses a neutral tone throughout the article and provides factual information about the housing market. However, there are a few instances where the author makes statements that could be perceived as having a slight bias towards buyers in the housing market. For example, when she says 'Buyers may get a slight respite soon on costs soon.' This statement implies that buyers have been struggling with high costs and could benefit from relief. Additionally, when she quotes Joe Hunt, a Redfin manager in Phoenix, who says 'it's so hot outside I don't want to see anything,' the author seems to be implying that the heat is keeping buyers away from the market. However, this statement is not directly related to bias and could be seen as simply reporting on market conditions. Overall, there is a slight bias towards buyers in the article, but it does not significantly impact the accuracy or fairness of the information presented.
    • Buyers may get a slight respite soon on costs soon.
      • it's so hot outside I don't want to see anything.
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      98%

      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

      Home prices begin to cool as active listings jump 35%

      CNBC News Diana Olick Thursday, 27 June 2024 16:11
      • Unique Points
        • Home prices are experiencing a cooling trend despite still being higher than they were a year ago.
        • Two-thirds of homes still sold over asking price in the last month, but this is the lowest share since June 2020.
        • Total active listings have increased by 35% compared to this time last year, but inventory is still down more than 30% from typical pre-pandemic levels.
        • Mortgage rates remain high with the average rate on the 30-year fixed mortgage at around 7% for three consecutive months.
      • Accuracy
        • The typical house sold for slightly less than its asking price (0.3% lower) during the four weeks ended June 23, compared to selling at list price a year ago and above list price two years ago.
        • Two-thirds of homes still sold over asking price in the last month, but this is the lowest share since June 2020.
        • Mortgage rates remain high with the average rate on the 30-year fixed mortgage at around 7% for three consecutive months.
        • Home prices increased by 6.3% in April compared to April 2023, and continued to rise in May.
        • Total active listings have increased by 35% compared to this time last year, but inventory is still down more than 30% from typical pre-pandemic levels.
      • Deception (100%)
        None Found At Time Of Publication
      • Fallacies (100%)
        None Found At Time Of Publication
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication