The median home sale price in the U.S. just touched a record high, but new data shows that buyers are nevertheless paying below asking price.
The median sale price hit a record $396,500 for the four weeks ending June 15, or a 1% increase from a year earlier, according to a Friday report from Redfin. But buyers are actually paying far less than sellers’ median asking price, which stood at $422,238 for the same period, the real estate company’s data shows.
That means buyers paid 6%, or $26,000, less than sellers hoped they would.
Americans are increasingly finding themselves squeezed out of the housing market, as mortgage rates remain high and the inventory of affordable homes remains low. As a result, the dream of home ownership, which is a meaningful way to build wealth, is becoming more distant for large swaths of the population.
Last year, just 24% of home sales came from first-time homebuyers, down from 50% in 2010, data from the National Association of Realtors shows. The typical first-time homebuyer’s age also hit an all-time high of 38, according to the group.
For those Americans who are trying to get their feet on the first rung of the property ladder, data from Redfin shows that sellers may be willing to be flexible on price, especially as there are now more sellers than buyers in the market.
High housing costs and widespread economic uncertainty have hurt demand, Redfin said.
As a result, the onus is on sellers to make sure their homes are in tip-top shape, and are reasonably priced, otherwise they’re unlikely to sell, according to Redfin.
“I’m explaining to sellers more and more that we need to be strategic in our pricing strategy because homes that are overpriced, even slightly, are likely to sit on the market and invite buyers to negotiate,” Tulsa, Oklahoma-based Redfin agent Kelly Connally said in a statement.
She added, “Pricing is most important, but with fewer buyers than usual out there, sellers should also make sure their home is in excellent condition and be ready to make repairs upon inspection.”
Buyers can’t necessarily expect a discount on their home of choice, though.
“There are a few exceptions: Homes in desirable locations that are in perfect condition are still hot and typically sell at or above asking price,” Connally said.
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