Leverage Shifts From Sellers to Homebuyers, Analysis Shows
Newser • • business
Key Points:
- The era of seller dominance in the housing market has ended, with bidding wars becoming less common, according to a new Realtor.com analysis and economist Joel Berner.
- Homes priced correctly at the start tend to sell within about four weeks and close at roughly 1.8% above asking price, while overpriced homes linger around 18 weeks and sell for about 1.3% below asking.
- Buyers now have increased leverage, especially in the $750,000 to $2 million price range, where final sale prices are falling the most below list prices.
- Condominiums face additional pressure, selling for a smaller share of their asking price compared to single-family homes, with average list prices down 6% from March 2022 due to rising HOA fees and insurance costs.
- Nearly 5% of residential listings were withdrawn from the market in May, the highest rate for that month since tracking began in 2022, which can contribute to upward price pressure.
