Redfin Reports Typical Home Sells for Less Than List Price

(Illustration courtesy of Redfin)

The typical home that sold during the four weeks ending June 23 sold for less than asking price for the first time at this time of year since 2020, according to Redfin, Seattle.  

Additionally, just under two-thirds of U.S. homes sold over asking price during that period. That’s the lowest share of any June since 2020, and down from 36% a year earlier, Redfin reported. Nearly 7% of home sellers dropped their asking price, on average, the highest level since November 2022 and up from 4.7% a year ago.

“The likelihood of homes selling below asking price is rising because there’s more supply than demand, at least for certain types of homes in certain parts of the country,” the report said. New listings are up more than 8% year-over-year and over 60% of homes are listed for at least a month without going under contract.

Record-breaking heat is also slowing the market. “I’ve heard some clients say, ‘it’s so hot outside I don’t want to see anything,’” said Redfin Manager Joe Hunt. “But if mortgage rates were lower, I doubt heat would be keeping buyers away.”

The report noted buyers may get a break soon. “The growing likelihood that homes sell below asking price, along with the high share of sellers dropping their prices, could mean sale-price growth loses momentum. Plus, mortgage rates may decrease further if inflation continues to cool,” Redfin said.