Could A Buyer's Market Be On The Horizon? Over Half Of U.S. Home Sellers Are Selling Their Properties For Less Than The Asking Price

Core Insights - The U.S. housing market is showing signs of shifting towards a buyer's advantage, with over half of home listings sold for less than their asking prices in May [1] - A significant year-on-year decline of 15% in closed deals was noted, despite a 10% increase in pending deals, indicating potential market instability influenced by high mortgage rates [2] Market Trends - The median home price in the U.S. is currently $495,000, leading to approximately $3,000 monthly interest payments on a 7% mortgage, with total payments potentially exceeding $5,000 when including principal and insurance [3] - Inventory levels are increasing in many markets, particularly in affordable housing, with Toledo, Ohio, experiencing a 128% increase in available inventory, the highest among metropolitan areas studied [4] Regional Insights - In Toledo, the median home price is $210,000, with only 32% of homes selling above the asking price, indicating a favorable environment for buyers [5] - Naples and Cape Coral, Florida, saw inventory increases of 58% and 55%, respectively, and are identified as having the highest risk of future price declines [5] - The Washington, D.C. metro area also experienced a 58% increase in inventory, but the median home price remains high at $650,000 [5] Buyer Strategies - There is an average $45,000 disparity between median list prices and median closing prices, suggesting buyers may benefit from focusing on newly built homes rather than the second-hand market, as major homebuilders can better absorb price drops [6]