The bidding wars are over — at least for now.
More than half of US homes sold in May went for less than their asking price, giving buyers a rare shot at calling the shots, according to new data from real estate analytics firm Cotality.
The typical sale closed $45,000 under list, and 56% of deals landed below asking, the report revealed.
“Savvy buyers are now in a market that is primed for negotiations on price reduction, closing cost assistance, and mortgage rate buydowns,” Cotality senior economist Daniel Boswell said in the report.
“However, the tilt toward a buyers’ market is only a bright spot for those who have the means to make a move. For many, systemic hurdles such as interest rates and rising insurance costs remain a barrier to homeownership,” Boswell wrote.
Today’s buyers need roughly $200,000 more than they would have a decade ago to purchase the median-priced home.
Overall, the numbers showed sales falling 15% from last year, while the median list price held at $495,000 year-over-year. Mortgage rates stayed stuck near 7%.
Nationwide, the typical listing is now waiting an average of 58 days before selling — a full week longer than last year, according to Realtor.com.
The market is now in the 16th straight month of slower sales, with more than 1.1 million homes lingering on the market for the third month in a row.
That means buyers have more options and less pressure to rush into a deal.
Some markets are seeing inventory explode.
Toledo, Ohio, recorded a staggering 128% jump in for-sale homes compared with last year, while Savannah, Ga., rose 108%.
Florida is seeing both ends of the spectrum — Naples had the steepest price drop in the country, down 15%, with sales plunging 29% and listings up 58%.
Miami had the largest sales decline, down 37%, but bucked the price trend, climbing 7% to a median $580,000.
Of the 25 markets where supply is rising the fastest, only Los Angeles, Lancaster, Pa., and Boise, Idaho, saw sales climb year over year. Everywhere else, buyers are pulling back – sometimes dramatically.
Sellers, meanwhile, aren’t giving in easily.
Many are holding firm to pandemic-era pricing expectations, even as reality shifts beneath them.
Delistings in June surged 48% from last year and 38% year to date.
“This points to sellers anchored to peak-era price expectations and willing to wait rather than negotiate,” Realtor.com Chief Economist Danielle Hale said.