A significant shift is underway in the U.S. housing market—an increasing number of homes are selling for below their original listing price. This change signals a cooling market, offering buyers meaningful leverage and encouraging sellers to adjust expectations.
How Common Is it?
Over Half Now Selling Below Ask
According to recent reporting, 56% of homes are currently selling below their asking price—a dramatic reversal from the high-demand bidding wars of recent years.
Sale-to-List Ratios Are Falling
Zillow data for June 2025 shows that 49.6% of home sales occurred below the final list price, while only 30.7% sold above it. In metro-level data, only 31.0% of homes sold above list price, down from 35% a year earlier, with a sale-to-list price ratio of 99.3%.
Discounts Reflect New Norms
Redfin reports that the typical home is selling for 1.8% below its original list price, marking the largest discount recorded since 2022.
Why It Matters
These changes reflect a broader shift in housing market dynamics. Higher mortgage rates have reduced buyer affordability, while inventory has increased—dampening competition and forcing sellers to negotiate. Homes are staying on the market longer, and buyers are often securing pricing concessions or closing perks.
Local Spotlight: Metro Detroit
Particularly notable in Metro Detroit, recent data indicates that over 6% of home listings are at risk of selling at a loss compared to what homeowners originally paid—higher than the national average of 5.7%. Many of these homes were purchased during the post-pandemic boom, highlighting the financial strain for owners hoping to sell near break-even.
What This Means for Buyers and Sellers
| For Buyers | For Sellers |
| More negotiating power, potential to secure below-asking deals | Must adjust pricing strategies for faster sales |
| Opportunities to request concessions or repairs | Risk of prolonged listings or price reductions |
| Broader market options as inventory grows | Likely to receive fewer above-ask offers |
Summary
The housing market is experiencing a significant pivot—over half of U.S. homes are now selling below list price, with sale-to-list ratios slipping below 100%, and typical discounts nearing 2%. This trend is reshaping strategies for both buyers and sellers, signaling a more balanced, less heated market.
Please note: Any opinions discussed in this article belong solely to the author, Marissa Berends, and do not necessarily reflect the views of Capitol Lien.
About the Author
Marissa Berends is a Certified Abstractor and Industry Relations Coordinator at Capitol Lien, a nationwide due diligence and risk mitigation services provider. Since joining the company in September 2021, she has earned abstractor certifications in Minnesota, Nebraska, and North Dakota. She is pursuing her Wisconsin Title Examiner certification, which is expected to be completed in Fall 2025.
Marissa is involved with the following groups: Wisconsin Land Title Association’s (WLTA) Convention Committee & Young Title Professionals; Nebraska Land Title Association’s (NLTA) Convention Committee; Property Record Industry Association (PRIA) National Education Committee; Illinois Land Title Association’s (ILTA) Inclusion, Diversity, Equity & Acceptance (IDEA) Committee; and the National Association of Land Title Examiners and Abstractors (NALTEA).
About Capitol Lien
Capitol Lien empowers real estate and title professionals with trusted public record research and due diligence services nationwide. With 35 years of experience, Capitol Lien specializes in fast, accurate property and title searches, lien reports, and document retrieval that help title agents, underwriters, and legal teams operate their businesses with confidence. The Capitol Lien team takes the hassle out of title research with local experts and innovative tools that make it easier to mitigate risk, stay on schedule, and keep your closings moving smoothly.
Learn more at capitollien.com. Ready to simplify your title research? Send your next order to Capitol Lien and experience the difference trusted diligence makes. Stay in touch with Capitol Lien on LinkedIn for industry updates and information. Reach out! contact@capitollien.com or 800-845-4077.
Sources:
Realtor.com: More Than Half of Homes Are Selling Below Asking Price
Zillow: United State Housing Market 2025 Index
Redfin: United States Housing Market 2025 Overview
Mortgage Professionals: More homes selling below asking price – biggest discounts in two years
Axios: More Metro Detroit homes selling at a loss