Taking Cues from Sidelined Buyers, Sellers Are Listing for Less

The gap between listing prices and actual sales prices is closing. In the four weeks ending July 13, asking prices rose by just 2.9% year-over-year
July 18, 2025
2 min read
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'For Sale' sign in front of single-family home
In an effort to get homes to sell, sellers are listing for less.

The housing market has been shifting in buyers’ favor for months, and sellers seem to be taking the hint. The gap between what sellers want and what buyers are willing to pay is shrinking, indicating that sellers may be coming to terms with what buyers consider to be realistic asking prices, according to housing market platform Redfin. 

During the four weeks ending July 13, the median asking price for both new and existing homes was $407,000, up by 2.9% year-over-year, but also the smallest increase in over four months. The asking price is also just slightly higher than the median home sales price of $401,120, indicating less competion for homes and negotiation over price.

Lower prices and more availability help to improve affordability for buyers

The median sales price is up by just 1.7% year-over-year. Given that the average U.S. wage has increased by more than 4% during this time, homes are more affordable than they were last year.

Adding to this affordability, buyers now have more options. The total number of homes for sale increased by 12% year-over-year. However, new listings are down slightly by 1% year-over-year.

Buyers should look at a lot of homes and make a lot of offers—even if they’re low or below market value—as more and more sellers are willing to make a deal. There’s a backlog of inventory, especially when it comes to condos, townhouses and newly built homes. Builders are giving all sorts of incentives, like mortgage-rate buydowns and covering closing costs, to get homes off their books. The one exception: desirable, move-in ready homes in the center of town where there aren’t as many new-construction homes to compete with. Buyers will usually pick those up relatively quickly if they’re priced right.

- Jim Fletcher, Redfin Premier agent

Some markets favor buyers more than others

 

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