(NewsNation) — Bidding wars are fading in many parts of the country as homebuyers gain more leverage than they’ve had in years.
The share of homes selling above asking price recently hit a springtime low of 28%, according to Redfin. That’s down from 53% in 2022 and marks the lowest level for this time of year since 2020.
Spring is typically when the housing market heats up, but high prices, elevated mortgage rates and economic uncertainty have kept more buyers on the sidelines this year.
Part of the slowdown is due to a mismatch between sellers’ expectations and the current market reality, with list prices far exceeding what buyers are willing to pay.
Today’s typical sale price is nearly $30,000 less than the typical asking price, according to Redfin. As recently as December, buyers were paying above the list price.
“Buyers have negotiating power, especially if they’re flexible on timing or location, or if they’re willing to take on a fixer-upper,” Chen Zhao, Redfin’s head of economics research, said in a statement.
Zhao noted that more sellers are making concessions to close deals and said buyers should be prepared to walk away if a seller is unwilling to meet them halfway.
While the share of affordable homes remains far lower than demand across much of the U.S., inventory has improved recently.
In April, the U.S. housing market had nearly 500,000 more sellers than buyers — the largest seller surplus on record since Redfin began tracking in 2013.
Redfin’s latest data shows that the share of homes selling above asking price has fallen in all but five of the most populous U.S. metros compared to a year ago.
The 28% of homes sold above list price reflects the rolling average for the four weeks ending June 8, 2025.
Midwest and Northeast remain hotter than elsewhere
Despite all the talk of buyers gaining bargaining power, home prices have yet to drop significantly. The median sale price was $397,000 for the four weeks ending June 8, up 1.6% from a year earlier, Redfin data shows.
The tide is starting to turn for homebuyers, but regional differences remain.
Compared to a year ago, sales prices are rising faster than the national average in Detroit (8.7%), New York (5.7%), Pittsburgh (5.6%), Virginia Beach (5.3%) and Chicago (5.2%), Redfin data shows.
That’s partly because the Midwest and areas of the Northeast continue to offer better value than major markets in the West.
Large cities in Texas and Florida have seen home prices fall from a year ago, but the trend is best understood as a return to normal — not a bursting bubble — as once red-hot pandemic markets undergo an inevitable cooldown. The two states have also led the nation in homebuilding in recent years.
Sales prices are down the most year-over-year in Oakland (-7.6%), Dallas (-4.9%), Jacksonville (-3.9%), Tampa (-2.4%) and San Diego (-2.1%).
The average rate on a 30-year fixed mortgage was 6.84% last week, according to Freddie Mac. That’s a slight drop from 6.95% a year ago but remains well above the 3% rates seen in 2020.
