The bidding wars are over. The average home now sells for less than the seller asked.
That is a full flip from the pandemic, when buyers fought to pay over the list price. A new Realtor.com report lays out how much the ground has shifted.
Timing is everything now, and the sweet spot closes fast. Realtor.com looked at how the sale price changes with time on the market.
Homes that sell within about four weeks go for 1.8 percentage points above the going rate for similar homes. The strongest ones land an offer in the first two weeks.
Homes that drag on for 18 weeks sell for 1.3 percentage points below that rate. That is a swing of more than three points, based on nothing but how long a house sits.
The pattern is simple. Price it right, and buyers come to you.
Price it too high, and you end up chasing them down. Fresh listings get the most eyes, and that early buzz is hard to win back.
Why does that matter? A home that lingers starts to look stale.
Buyers watch the days pile up and assume something is wrong. So they offer less, or they skip it.
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This change traces back to one thing: mortgage rates.
When rates jumped starting in 2022, monthly payments shot up and buyer demand cooled. The wild bidding wars of 2021 are now a memory in most of the country.
Sale prices fell hard against list prices from 2022 to 2023, right as rates spiked. They have stayed soft ever since, which reshaped the housing market.
Now buyers have more room to negotiate than they have had in years. They can ask for a lower price, help with closing costs, or repairs before they sign.
Sellers feel it too. Price cuts now peak around six weeks in, versus about three weeks during the 2021 boom.
Buyers can also win cuts at the six-month and one-year marks, when tired sellers finally give in.
Patience has become a buyer's best tool. The longer a home sits, the weaker the seller gets.
Not every market flipped. The Northeast is the only region where the average home still sells above asking.
The South and West tell the opposite story. Many cities there now have more homes for sale than before the pandemic.
That gives buyers options, and they know it. Builders are pitching in as well, with rate buydowns and other perks to seal deals.
It all comes down to where you live. A hot market in one state can be ice cold in another.
Sellers who price right from day one still win. Sellers who aim too high end up chasing the market down.
For buyers, patience pays right now. The house that nails the price in the first month sets the tone for the whole sale. A little room to negotiate goes a long way.
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