Housing News

Balance Is Returning to the Housing Market. Why Buyers Should Pay Attention

Homebuyers are finding more opportunities in the housing market this summer.

More homes are for sale, according to a new analysis of Zillow housing data by New American Funding Principal Analyst Ryan Schoen. More properties are selling below the asking price. Price cuts are becoming easier to find. Monthly payments are also slightly lower than they were a year ago.

These shifts are helping the housing market move toward a healthier balance.

“The market isn’t dramatically hot or cold, it’s becoming more balanced,” wrote Schoen in a new NAF Insights report. “Buyers have more negotiating power than they’ve had in years, while disciplined sellers who price appropriately and prepare their homes well continue to achieve strong outcomes.”

Homebuyers who understand their budget and arrive prepared may find more choices and greater negotiating power in today’s market.

Here’s what homebuyers need to know.

Homebuyers have more than 1.3 million homes to choose from

The number of homes for sale reached 1,364,109, up 4.57% from the previous month and nearly 1% from a year ago, according to Zillow data.

That represents one of the most meaningful improvements in the current housing market.

More housing stock gives buyers a better chance to compare properties, consider different neighborhoods, and avoid feeling pressured to make an immediate offer on the first suitable home they find.

Housing stock is now running behind only 2018 and 2019 levels for this point in the year, wrote Schoen.

New listings fell 4.07% from a year earlier, meaning the recent improvement is not spread evenly across every local market. Yet the broader rise in homes for sale is still helping to reduce some of the intense competition that defined the pandemic-era market.

More homes are selling below the asking price

Nearly 52% of homes sold for less than their list price, compared with just over 50% a year ago.

Meanwhile, about 28% of homes sold above asking, compared with 30% a year earlier.

For buyers, the shift means asking prices are becoming a starting point for negotiations again rather than a floor that must immediately be exceeded.

The average home still sold for about 99% of its list price, suggesting that homes priced realistically continue to attract serious offers. Sellers who begin too high may be more likely to negotiate or reduce the price.

“The market is clearly cooling,” wrote Schoen. “Fewer homes are selling above the asking price, and more are selling below the list price. This shift gives buyers leverage while still rewarding well-prepared, realistically priced properties.”

Price cuts could create room for buyers to negotiate

Almost a quarter of home listings had a price cut, up slightly from the previous month. The median reduction was $10,000. That’s good news for homebuyers on budgets.

Not every seller will negotiate, but the trend shows that buyers have more room to ask than they did a year ago. They do show that a significant share of sellers are reconsidering their pricing as homes compete for attention.

Buyers may also be able to negotiate beyond the purchase price. Depending on the transaction, sellers may be willing to help with closing costs, repairs, or a temporary mortgage rate buydown.

Home prices are showing signs of modest relief

Home prices are showing signs of leveling off, which could offer some relief to buyers.

The national median list price was $419,000, down 1.41% from a year ago. Home values were also nearly unchanged from the previous month.

That does not mean home prices are falling sharply nationwide. Instead, the rapid price growth of recent years appears to be easing as sellers adjust to what buyers can afford.

Monthly mortgage payments are lower than a year ago

For a buyer making a 10% down payment, the estimated monthly mortgage payment was $2,372, down $64 from a year earlier.

Those savings may seem modest, but even incremental improvements can matter for buyers trying to fit a home into a monthly budget.

Rather than waiting for rates to drop, many buyers find it more useful to focus on what monthly payment fits their budget today. Buyers may want to focus less on predicting the exact direction of rates and more on understanding what payment works for them today.

“The market is not collapsing. It is recalibrating,” wrote Schoen.