Leverage Shifts From Sellers to Homebuyers, Analysis Shows

Home sellers who grew used to calling the shots may need to adjust their expectations. A new Realtor.com analysis finds the multiyear streak of sellers' dominance has ended, with economist Joel Berner declaring that "the bidding war era is over." The data, which pairs closing prices with listing histories, suggests homes priced correctly at the start still move—and even earn a slight premium—while those listed too high risk going stale and ultimately selling for less, USA Today reports. Complicating the picture is the withdrawal of more homes from the market, which can push prices up.

Realtor.com found that homes that sell in about four weeks close at roughly 1.8% above asking, while listings lingering around 18 weeks end up about 1.3% below. Buyers now "have more leverage than they've had in years," Berner writes, especially in the $750,000 to $2 million range, where final prices are falling the most below list price. Condos are also under pressure: They're selling for a smaller share of asking price than single-family homes, and their average list prices are down 6% from March 2022, weighed by rising HOA fees and insurance costs. ABC News reports that almost 5% of residential listings were taken off the market in May, the highest share for the month since Realtor.com first tracked delistings in 2022.