After years of sellers holding the advantage in negotiations, it appears that homebuyers may be gaining the upper hand in some markets. CNBC’s Mike Winters reports that homes are selling below asking price in 38 of the 50 largest American cities. He writes:
Homes sold for less than their asking price in 38 of the 50 largest U.S. housing markets, according to the latest monthly Redfin data. For many buyers, that means more room to negotiate — if they can afford today’s record-high home prices.
The biggest discounts were concentrated in Florida and Texas. Homes in Miami and West Palm Beach, Florida sold for nearly 5% less than their asking price on average, while buyers across much of the South typically paid 2% to 3% below asking in June, the latest month for which Redfin has metro-level sales data.
The 10 largest average discounts from asking price were:
- Miami: 4.66%
- West Palm Beach, Florida: 4.59%
- Houston: 3.53%
- Austin, Texas: 3.17%
- Tampa, Florida: 3.07%
- Dallas: 2.99%
- San Antonio: 2.84%
- Jacksonville, Florida: 2.76%
- Pittsburgh: 2.60%
- Orlando, Florida: 2.48%
Winters goes on to note that in other markets like San Francisco, Boston, and New York, homes have been selling for higher than asking price. High interest rates and a reversal of some Covid-era migration patterns could have something to do with the trends.
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