U.S. Homebuyers Gain Leverage as Bidding Wars Subside, Realtor.com Analysis Shows

The latest Realtor.com analysis, which pairs closing prices with listing histories, indicates that the multiyear streak of seller dominance in the U.S. housing market has ended. Economist Joel Berner characterizes the change as the conclusion of the bidding-war era, noting that buyers now possess more leverage than in recent years. The shift is most pronounced in the $750,000 to $2 million price segment, where final sale prices are falling further below list prices.

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For several years, low inventory and high demand created a market where multiple offers routinely exceeded asking prices, prompting sellers to set listings above market value. This environment encouraged rapid sales and limited buyer negotiation power. The new data suggests that this pattern is reversing as inventory dynamics evolve.

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The analysis finds that homes priced accurately at listing close at roughly 1.8 % above asking when sold within about four weeks. In contrast, listings that remain on the market for approximately 18 weeks close about 1.3 % below asking. Condominiums face additional pressure: their average list prices have declined 6 % since March 2022, a trend attributed to rising homeowners-association fees and insurance costs. Moreover, ABC News reports that nearly 5 % of residential listings were withdrawn in May, the highest monthly share since Realtor.com began tracking delistings in 2022.

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Buyers can now negotiate more effectively, especially in the $750,000–$2 million bracket where price concessions are deepest. Sellers who price homes above market expectations risk prolonged exposure and eventual discounting. The condo market’s price erosion signals that cost-of-ownership factors are influencing buyer decisions. Overall, the market appears to be moving toward a more balanced state where accurate pricing and timely listings are critical for achieving favorable outcomes.

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Realtor.com’s analysis emphasizes that correctly priced homes continue to sell promptly and may even command a modest premium, while over-priced listings tend to stagnate and sell for less. Joel Berner, the economist cited in the study, underscores the increased bargaining power of buyers and advises sellers to adjust expectations accordingly. USA Today corroborates the finding that homes listed at appropriate prices still move, reinforcing the analysis’s conclusions.

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• “the bidding war era is over.” — Joel Berner, Economist

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• “have more leverage than they've had in years,” — Joel Berner, Economist

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The sources reviewed present a consistent picture of shifting market dynamics; no contradictory data or significant gaps were identified within the provided information.

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