Home buyers now have more leverage over sellers than they have in years. The bidding wars that dominated the market over the past half-decade are fading, allowing buyers to negotiate better deals.
Sellers are increasingly lowering prices or offering incentives to close sales. The average home is now selling for 2% less than its original listing price, according to real estate brokerage Redfin.
Rising mortgage rates and economic uncertainty have slowed demand in many housing markets. As a result, homes are staying on the market longer, forcing sellers to adjust their expectations.
“Buyers are regaining control,” a Redfin agent said. He noted that in some areas, homes that once received multiple offers within days are now sitting unsold for weeks.
For years, the market heavily favored sellers. Low interest rates and high demand created intense competition, leading to record-high home prices.
Now, mortgage rates have risen above 6%, making homeownership less affordable. Some potential buyers have decided to wait, while others are negotiating harder for price reductions.
Sellers who once expected bidding wars are facing a different reality. Many are willing to negotiate on price or offer incentives such as covering closing costs.
Incentives like mortgage rate buy-downs and free home upgrades have become more common. These perks help attract buyers who are hesitant due to high borrowing costs.
Some sellers have had to relist properties after failing to receive acceptable offers. This trend is most noticeable in markets that experienced rapid price growth, such as Austin, Phoenix, and Seattle.
“The days of extreme seller power are over,” a real estate analyst said. He noted that overpriced homes are struggling to sell, while well-priced properties still attract interest.
Despite the shift, home prices remain high compared to pre-pandemic levels. Many homeowners are reluctant to sell at lower prices, leading to a slower correction instead of a market crash.
Experts say the market is stabilizing rather than collapsing. The extreme price increases of the past few years are giving way to more balanced conditions.
First-time buyers, who struggled to compete with investors and cash buyers in previous years, are benefiting the most. Many can now take their time searching for homes without fear of being outbid immediately.
Some buyers are even making offers below asking price and seeing them accepted. This was rare during the peak of the seller’s market but is becoming more common in today’s conditions.
“Sellers need to be more flexible,” a real estate agent in California said. She advised homeowners to adjust their pricing strategies to reflect the changing market.
Not all markets are seeing the same level of slowdown. In some cities, demand remains strong, and prices have yet to drop significantly.
Seasonal trends also play a role in the housing market. Spring and summer typically bring more home sales, while winter tends to slow down activity.
Experts recommend that buyers research local market trends before making an offer. Understanding which areas have shifted in favor of buyers can help them negotiate better deals.
For sellers, proper pricing is now more important than ever. Homes listed too high risk sitting on the market for months, leading to further price cuts.
Real estate professionals expect the market to continue adjusting throughout the year. Mortgage rates and economic conditions will likely influence demand in the coming months.
While the future remains uncertain, one thing is clear—buyers now have opportunities that were rare in previous years. The ability to negotiate lower prices and incentives marks a major change in the housing market.
For those waiting for the right time to buy, conditions are becoming more favorable. Whether this trend continues will depend on future economic developments and interest rate decisions.
