In a shifting housing market, a growing number of homes are selling for less than their original asking price. In February, nearly two-thirds (64.2%) of homes sold below list price, up from 60.9% the year before. Meanwhile, just 20.5% sold above asking, a slight drop from 22.8% a year ago.

One key reason for this trend? Rising inventory. When buyers have more homes to choose from, they feel more empowered to negotiate. Sellers often start high but end up cutting prices to attract offers.

Half of the metros where homes fetched above asking prices were clustered in the Bay Area and New York City. On the flip side, all 10 of the metros with the most price cuts were located in Florida or Texas.

Looking at annual trends, prices rose 4.6% year-over-year in March, down from 5.1% the previous month. That marks the 11th straight month of slowing annual growth—and the first time growth dipped below 5% since August 2023.

Nationwide, home prices saw only a modest 0.2% increase in March, the slowest monthly growth rate since December 2022. Slowing prices are caused by rising inventories coupled with weaker demand.

While more homes are hitting the market, fear of a broader economic slowdown is pushing many would-be buyers to the sidelines. . Potential tariffs and affordability concerns may keep demand muted.

On a local level, home prices dropped in 20 of the 50 largest U.S. metros in March. Columbus, OH led with a 0.7% dip, followed by Denver and San Jose. Meanwhile, San Francisco saw the biggest gain at 2.7%, followed by Nassau County, NY, and Milwaukee..

For buyers, this shifting market presents a rare window of opportunity. With more homes selling below list price and rising inventory giving buyers the upper hand in negotiations, it could be a good time to make a move—especially in markets where prices are softening.

Call Bay Equity to ask about our home loan options today!