Homes are selling below asking in more metros — why affordability still hasn’t eased

What’s changing: more discounts and buyer leverage

A growing share of major U.S. housing markets has shifted from a seller-dominated dynamic to one where buyers can negotiate harder. Redfin’s metro-level tracking has shown a broad increase in buyer-leaning conditions, including more homes closing below their asking prices and more willingness from sellers to adjust price expectations or offer concessions. In Redfin’s March 2026 analysis, 38 large metros registered as buyer’s markets, up from 29 a year earlier. [redfin.com]

This doesn’t mean every neighborhood is suddenly "cheap." It does mean the balance of power is less one-sided: the typical buyer has more time, more options, and more ability to ask for repairs, credits, or a cleaner price.

What isn’t: the affordability math

Affordability remains the central constraint. Redfin estimates Americans need to earn about $111,252 per year to afford the typical U.S. home for sale, while the typical household earns about $86,185—roughly a $25,000 gap. [redfin.com]

Meanwhile, borrowing costs are still high. Freddie Mac’s weekly Primary Mortgage Market Survey put the average 30-year fixed mortgage rate at 6.69% as of August 6, 2026, which keeps monthly payments elevated even when the sale price comes in below list. [apnews.com]

And the "all-in" monthly cost often rises faster than buyers expect. Property taxes and homeowners insurance can add meaningful friction, especially in places where assessed values and insurance premiums have climbed.

Why prices aren’t falling fast

Even with softer demand, several forces can slow price declines:

• **Rate lock-in:** Many owners financed or refinanced at much lower rates and are reluctant to trade into a higher mortgage payment, limiting resale supply. That can keep overall inventory tighter than it looks from the buyer side.
• **Uneven demand by price tier:** Higher-end buyers are less payment-sensitive, while entry-level shoppers feel rate pressure most intensely. This can produce a split market where "starter" activity stays subdued even if luxury sales hold up. [cnbc.com]
• **Sticky sellers:** Some sellers will withdraw rather than cut aggressively, which can keep medians elevated even as transaction volume softens.

How to use this info (buyers and sellers)

If you’re buying

Prioritize the monthly payment, not the headline price. A 2%–4% discount off asking helps, but it may not offset a rate that’s near 7%. When you negotiate, consider:

• Seller credits toward closing costs
• Temporary or permanent mortgage-rate buydowns
• Repair credits based on inspection findings

If you’re selling

Expect more negotiation. The cleanest path to a sale is often a realistic list price paired with a willingness to offer concessions if appraisal or inspection issues arise. In today’s environment, "meet the market" pricing can beat "test the market" pricing.

If you invest

Underwrite conservatively: assume slower resale velocity and don’t bank on rapid appreciation to bail out thin cash flow. If the deal works on realistic rents and expenses today, it’s more resilient if the market softens further.