Share of US Homes Selling Above Asking Price Declines to 2020 Level

With the 30-year fixed mortgage rate near 7 percent, buyers are seeing more options while sellers cut prices on properties, Redfin says.

A sign at a property in Washington on May 19, 2025. Madalina Vasiliu/The Epoch Times

The share of homes sold above their listing price was at 28.5 percent for the four weeks ending June 8, down from 32 percent a year back, real estate brokerage Redfin said in a June 12 statement.

The 28.5 percent share is the “lowest level for this time of year since 2020, when the start of the pandemic ground the housing market to a halt,” the company said.

“That’s one signal of the shift toward a buyer’s market in much of the country. For the sake of comparison, more than half (53 percent) of homes sold above list price during this period in 2022, when the housing market was heavily favoring sellers.”

Buyers are hesitating since housing costs are too high, with mortgage rates hovering near 7 percent and the median monthly housing payment only $29 lower than its record high.

“It’s still tough for many Americans to buy a home, as affordability remains a real challenge, but house hunters should know that sellers are accepting offers below asking price and giving concessions to get deals done,” said Chen Zhao, Redfin’s head of economics research.

“Buyers have negotiating power, especially if they’re flexible on timing or location, or if they’re willing to take on a fixer-upper. Buyers should negotiate, and be prepared to move on to other homes if a seller is unwilling to meet them halfway; they may be able to get a better deal elsewhere.”

A June 16 report from real estate marketplace Zillow also detailed a more favorable housing market for buyers, who had more options in May compared with last year.

Sellers cut prices on almost 26 percent of listed homes across the country, which Zillow said was the highest for any May in its records.

Meanwhile, home price growth is expected to moderate this year.

A survey of more than 100 housing experts forecasts home prices to grow by 2.9 percent this year, down from the 5.3 percent growth in 2024, Fannie Mae said in a June 13 statement. It is expected to slow down to 2.8 percent next year.

High Mortgage Rates

Mortgage rates have remained elevated for a long time and are a major contributor to the affordability crisis.

The average weekly rate of a 30-year fixed-rate mortgage has remained above 6 percent for every single week since September 2022, according to data from Freddie Mac. Since mid-April, rates have been moving in the 6.7 to 6.9 percent range.

In a June 12 commentary, Dr. Lisa Sturtevant, chief economist at real estate data company Bright MLS, said the “new normal” of mortgage rates is the high-6 percent range.

As such, the “relatively slow pace of home sales transactions during the spring is likely to push into summer,” she wrote. “I expect mortgage rates to decline more significantly at the end of the summer, leading up to the Fed’s September meeting.”

“Lower rates could bring more buyers out this fall. But it is becoming more of a possibility that weakening consumer confidence and labor market concerns may cast a long shadow into the fall housing market.”

In its May policy meeting, the Federal Reserve raised concerns that inflation may persist longer than expected. The Fed kept its benchmark interest rates unchanged for the third consecutive meeting in May.

According to the Bureau of Labor Statistics, inflation rose to 2.4 percent in May from 2.3 percent in the previous month. Although there was a slight increase, the inflation numbers were below economists’ expectations.

The Trump administration’s tariff policies are expected to “boost inflation markedly” in 2025, followed by a smaller increase in 2026, said the policy minutes of the meeting. However, inflation is projected to eventually decline to 2 percent by 2027.

The longer that the Fed’s rates remain high, the higher the possibility that mortgage rates will also remain elevated. President Donald Trump has been calling for the Fed to cut interest rates.

The next Fed meeting is scheduled for June 17-18.