Homes selling below asking in 38 major U.S. markets, Redfin data shows
June data shows average sale prices below list in 38 large metros, but record home prices and 6.49% mortgage rates still squeeze buyers.
By Dev Ramirez · Crypto Correspondent
· 3 min read
Homes selling below asking is now the average outcome in 38 of the 50 largest U.S. housing markets with available June data, according to monthly Redfin figures reported by CNBC. That can give house hunters more room to negotiate, but it does not mean housing has become broadly affordable: Redfin put the national median sale price at a record $408,776 in June, while the average 30-year mortgage rate was 6.49%.
The gap between a listing price and a final sale price measures bargaining conditions, not the total cost of owning a home. A lower sale price can still leave a buyer facing a high monthly payment, property taxes and insurance costs.
Where are homes selling below asking price?
The largest average discounts in the June metro data were concentrated in Florida and Texas. CNBC's report, citing Redfin, ranked the 10 biggest gaps from asking price as follows:
- Miami: 4.66% below asking
- West Palm Beach, Florida: 4.59% below asking
- Houston: 3.53% below asking
- Austin, Texas: 3.17% below asking
- Tampa, Florida: 3.07% below asking
- Dallas: 2.99% below asking
- San Antonio: 2.84% below asking
- Jacksonville, Florida: 2.76% below asking
- Pittsburgh: 2.60% below asking
- Orlando, Florida: 2.48% below asking
A sale-to-list ratio compares the price a home sells for with its asking price. A ratio below 100% means homes in that market sold below list on average. It does not mean every seller accepted a discount or that a buyer should expect the same result on a particular house.
San Francisco, New York and Boston moved the other way, with sellers receiving slightly more than their asking prices on average, CNBC reported. The analysis covered the 50 largest U.S. markets for which June sale-to-list figures were available. Fort Lauderdale was excluded because Redfin did not report a ratio for the market that month.
Why can prices stay high while homes sell below list?
Redfin chief economist Daryl Fairweather told CNBC that higher borrowing costs reduce what buyers can pay, while sellers may take longer to reset their price expectations. She also pointed to post-pandemic homebuilding in several Florida and Texas markets, which has given buyers more choices. Higher insurance premiums and property taxes in those areas have added to ownership costs, according to CNBC's report.
The national data show why a below-list deal and an affordability problem can coexist. Redfin reported that the median U.S. home-sale price rose 2.2% from a year earlier in June. It also said 22.2% of homes sold above their original list price that month on a seasonally adjusted basis. CNBC separately reported, citing Redfin, that about 25% sold above asking, versus roughly 55% at the 2022 pandemic-era peak.
For a buyer evaluating one listing, marketwide averages are only a starting point. Fairweather advised reviewing local sale-to-list data. CNBC also noted that the time a home has been listed and any prior price reductions can indicate whether a seller may be more open to discussing price, closing costs or repair credits. A correctly priced home in a neighborhood with limited inventory and strong demand can still receive multiple offers.
This story draws on original reporting from CNBC.
