US Housing Market Shift: 7 in 10 Homes Now Sell at or Below Asking Price

Every week Ask Rafucci takes a look at what’s happening in the housing market so you don’t have to. As we move into mid‑August, the picture that’s emerging is one of a market that’s opening up — but not yet cheap.

More homes to choose from

After years of tight supply, there are finally more signs on front lawns. Realtor.com’s latest weekly update shows that the number of homes for sale continues to climb and has been rising for more than a year hbsdealer.com. New listings are trickling in, but many homeowners remain on the sidelines, so the big shift is coming from houses taking longer to sell realtor.com. In other words, buyers aren’t rushing to snap up every property, and that’s giving the market some breathing room.

Prices, however, haven’t come down much. Compared with this time last year, the typical asking price is only slightly higher, and there are now more price cuts — roughly one‑fifth of listings saw a reduction in July hbsdealer.com. The hottest ZIP codes in 2025 are mostly suburban spots in the Northeast and Midwest with easy commutes and good amenities realtor.com. But even there, high mortgage rates mean buyers are picky and negotiating harder.

It’s becoming a buyer’s market

One of the clearest signs of a cooling market is the gap between what sellers ask and what buyers are willing to pay. Redfin’s U.S. market tracker shows that in June only about 31 % of homes sold above their list price, meaning nearly seven out of ten sold at or below asking redfin.com. The sale‑to‑list ratio sat around 99 %, down slightly from last year redfin.com, and price cuts were more common — roughly 21.5 % of homes on the market saw a reduction redfin.com. Put simply, bidding wars are the exception rather than the rule.

Industry analysts see the same pattern in other datasets. A lending‑industry report noted that around 40 % of homes sold below asking price in May and that roughly a third of sellers had to reduce their price to get a deal premiertrustlending.com. The Homes for Heroes July trends update likewise points out that many homes are selling below their list price and that about one‑third of sellers are cutting prices homesforheroes.com. Even local snapshots tell the same story: in Central Texas, nearly 70 % of homes closed below their asking price in early August, up from about 66 % the month beforeteamprice.com. These numbers all point to growing leverage for buyers.

A final sign of the market’s shift is the shrinking sale‑to‑list ratio. Redfin’s data show that the typical home is selling for about 99 % of its asking price, compared with more than 100 % during the pandemic boom redfin.com. That means sellers are still aiming high, but buyers are successfully negotiating them down.

Mortgage rates: a small dip, still high

On 7 August, Freddie Mac’s 30‑year mortgage rate slipped to 6.63 %, the lowest since April realtor.com. That’s a welcome drop, but it’s still well above the pre‑pandemic average. Economists at Realtor.com think rates could ease to around 6.4 % by the end of the year if inflation stays in check realtor.com. For now, buyers who lock in today’s rates should expect monthly payments to stay steep, but a slight decline could help stretch budgets a bit further.

How people feel about buying and selling

Fannie Mae’s Home Purchase Sentiment Index ticked up in July, rising to 71.8 from 69.8 realtor.com. That means people feel a little better about the market than they did a month earlier. But when asked whether it’s a good time to buy, sentiment was as negative as it’s been all year realtor.com. High prices and borrowing costs are clearly weighing on would‑be buyers.

Interestingly, the survey also found that fewer respondents are worried about losing their job realtor.com. Still, only about a third expect their personal finances to improve in the coming year realtor.com. Expectations for mortgage rates are all over the map — roughly four in ten think they’ll stay the same, while the rest are split on whether rates will go up or down realtor.com. Yet nearly half of respondents expect home prices to keep rising realtor.com, suggesting plenty of demand is waiting in the wings if affordability improves.

Where the market is cooling — and where it isn’t

The nationwide numbers hide some important local stories. In the South and West, inventory is piling up and sellers are slashing prices — cities like Austin, Miami and Los Angeles have seen some of the biggest year‑over‑year declines hbsdealer.com. In the Midwest and Northeast, supply is still tighter and prices are holding up hbsdealer.com. If you’re buying or selling, knowing your local trend matters more than the national averages.

Rents are inching down

It’s not just the for‑sale market that’s loosening up. Median asking rent for smaller homes dropped 2.1 % from a year ago to about $1,711 in June realtor.com, the 23rd straight annual decline. Rents are still higher than they were before the pandemic, but they’re slowly drifting down. Renting remains cheaper than buying in all but one of the 50 largest metro areas; on average, owning a starter home costs about $900 more per month realtor.com. That gap helps explain why demand for rentals remains sturdy even as more houses hit the market.

Bottom line

The housing market today offers more choices but not big bargains. Inventory is up and homes are lingering longer, yet high mortgage rates keep the monthly payments hefty. If you’re a buyer, you have room to negotiate and should watch rates closely; a small drop could make a significant difference. Sellers need to be patient and realistic on pricing. And renters can take heart that rents are sliding, even if the savings are modest. We’ll continue to monitor these trends every week to help you make smarter housing decisions.