Homebuyers gain edge over sellers in top U.S. CIties

More signs are pointing to a buyers’ market taking hold across the country.

In more than half of the most populous metropolitan areas in the U.S., homes are selling below their asking prices, underscoring the nationwide power shift in favor of homebuyers.

Six of the 10 most populous metros, three of which are in Texas, recorded sale-to-list ratios below 100 percent, according to data from Redfin analyzed by The Real Deal. Houston’s was the lowest, at 97.15 percent.

However, in a signal that buyers increasingly are gaining an edge over sellers, all of the top metros’ sale-to-list ratios fell year over year. Additionally, all of these regions saw the share of their active listings with discounts grow year over year.

TRD analyzed the average sale-to-list ratios — homes’ final sale prices divided by their last listings prices, expressed as a percentage — in the top cities around the country from the 12 weeks from March 17 through June 8. Sale-to-list ratios under 100 percent mean homes sold for less than their asking prices; ratios over 100 percent signal a competitive market, where homes are trading above ask.

The picture this metric paints among the country’s top cities is in line with national trends: the average sale-to-list price ratio was 99.1 percent for the four weeks ending June 8, which was down half a percentage point from the same time last year, according to Redfin. 

Nationally, 28.5 percent of homes are selling above their listing price — the lowest share since 2020 and a decline of 3.5 percentage points year over year. And the median sale price was 7 percent lower than the median list price.

Among the top markets, San Jose, California, posted the highest ratio of about 105 percent. But that figure is about 3 percent lower than the year before, representing the greatest year-over-year drop.

And while buyers increasingly may have the upper hand in transactions, prices are still on the rise: the median sale price in the U.S. for the four weeks ending June 8 was $397,000, which was 1.6 percent higher than the year before, per Redfin. Among the most populous cities, six posted median price hikes year over year (over 12 weeks, ending June 12). Philadelphia recorded the biggest boost during that time, of 6.8 percent.