Top 10 Cities Where Homes Sell for the Most Below the Asking Price

Realtor September 27, 2024

Buyer

Top 10 Cities Where Homes Sell for the Most Below the Asking Price

Most homebuyers know that the price they see on real estate listings is more a fervent hope than a steadfast number etched in stone. So how much more—or less—than the asking price should buyers offer?

For starters, that depends on timing. During the COVID-19 pandemic, demand for homes was so strong that offers over the asking price were the norm.

“The U.S. saw homes sell for the most over asking price in May 2022, when the typical home sold for 3.1% over asking,” says Realtor.com® senior economic data analyst Hannah Jones.

But as interest rates started rising in late 2022, this changed the rules of the game.

“The typical U.S. home has sold for less than asking since August 2022,” says Jones. “In the first half of 2024, the typical U.S. home sold for 1.9% below asking price.”

Location matters, too. In certain areas, home sellers are more willing to entertain lower offers. So where are there bargains hiding?

To help buyers home in on these deals, Realtor.com analyzed the sale-to-listing price ratio for the 75 largest U.S. metros to pinpoint areas where home sellers are getting the most below the asking price. The results suggest that the frenzy to own a home in the South, particularly Florida, is over.

“All 10 of the metros where homes are selling for the most under asking are in the South, and six are in Florida,” says Jones.

A big reason for that is an uptick in inventory. Florida’s housing inventory took a major dip during the pandemic. In March 2022, fewer than 36,000 homes were on the market. But as of August 2024, there are more than 140,000 listings available.

And it’s not just that more existing properties are being sold.

“On top of resale, we continue to see an influx of new-construction projects further increasing housing supply levels,” says Matthew Consolo, owner of Premier Point Vacations, which manages properties across Florida. “It’s all about supply and demand. When supply far overshadows demand, buyers hold most of the bargaining chips.”

Several cities on this list, including Orlando, Miami, Cape Coral, and Tampa, are also among the cities with the most new construction per capita, according to an August 2024 report from MoveBuddha, which analyzed the Department of Housing and Urban Development and U.S. Census Bureau data to come up with its list.

Shmuel Shayowitz, president and chief lending officer at Approved Funding, says home prices in Florida during the pandemic “rose so fast that they were destined to fall. Buyers were tired of chasing the higher highs.”

Now, “buyers are pausing, especially during periods of higher rates,” adds Shayowitz, who expects markets such as Miami, Tampa, and Orlando will stabilize as interest rates fall.

Buyer attitudes have shifted

Desiree Avila, a Realtor® in South Florida, says she’s noticed buyer attitudes have shifted over the past year.

“They are no longer willing to buy a house sight unseen, without an inspection or without an appraisal because it is cheap to borrow money,” Avila says. “On the contrary, buyers are now more demanding and particular in what they are willing to accept. Unless a house is in absolutely tiptop shape and priced accordingly, they are not willing to pay the asking or over-asking price.”

She says that she’s seen most buyers making offers below the asking price.

Avila urges sellers to “be realistic” and to consider both the current market conditions and the comparative market when putting their homes on the market.

“If you have a property on the market, you need to make sure it’s in the top tier to close a sale at a reasonable price,” adds Consolo. “Sellers need to look at what similar properties have sold [for] and replicate the features where possible.”

Getting less for more

Of course, that doesn’t necessarily mean that the markets on this list are affordable—the median home price in Miami is still $675,000, and even buyers who manage to purchase a home for below the asking price are still paying way more than they would have had they purchased in 2019.

“Though the typical buyer has been able to buy for less than listing price in these markets, home prices are still well above pre-pandemic levels, which means buyers are still paying a pretty penny for a home in these areas,” says Jones.

Still, homebuyers should be happy to learn where they can lowball a little and get away with it. Below are the top markets where homes sell for the most below the asking price, plus how much buyers should expect to pay.