Homes are now selling for roughly 1% below asking price the largest discount since 2020

High housing costs and ongoing economic uncertainty are sidelining many potential homebuyers, contributing to a cooling market and prompting some would be sellers to delay listing their homes.

During the four weeks ending June 1, new home listings across the U.S. rose just 6.3% year over year one of the smallest increases in the past three months. In fact, 11 of the 50 largest metro areas saw year-over-year declines in new listings, with the steepest drops in San Jose, CA, and four Florida markets: Orlando, Fort Lauderdale, Tampa, and West Palm Beach.

Looking closer at recent trends, new listings fell during the second half of May. While a post-mid-May dip is typical, this year’s drop was the sharpest for that period in over a decade.

On the demand side, buyer activity continues to decline. Pending home sales dipped 0.4% year over year to their lowest May level since 2020. Mortgage-purchase applications also fell 3% from the previous week. With the median home price up 1.2% and mortgage rates nearing 7%, many buyers are pulling back further pressured by broader economic instability.

Despite more sellers than buyers still being active, the slowdown in new listings signals hesitancy among some homeowners. Homes are now selling for roughly 1% below asking price the largest discount for this time of year since 2020. Additionally, just 28% of homes are selling above asking price, down from 32% a year ago.

In Indiana we're seeing it's still a buyers' market. Giving plenty of opportunity for negotiating a lower purchasing price and seller credits towards closing. Right now, is a great time to invest in real estate, especially in Indianapolis, IN. If you're ready to start your home journey book a call today with us at Blu Jae Realty.