Why Many Homes Are Selling Under Asking (and How to Still Win in Today’s Market)

Time for a Reality Check: The Market Has Shifted

If you’re still pricing your home expecting a bidding war and offers over asking, it’s time to hit reset. That white-hot seller’s market? It’s gone.

Here’s what the latest numbers say — and what they mean for you.

From Frenzy to “Normal”

Right now, about half of all homes on the market are selling for less than their asking price, according to the latest Zillow data.

At first, that might sound like bad news. But really, it’s the market finding its balance again. The runaway price growth we saw over the last few years wasn’t sustainable and this adjustment is what a healthy market looks like.

Let’s break it down:

• 2018–2019: Around 50–55% of homes sold below asking. That was normal.

• 2021–2022: Only 25% sold below asking, thanks to record-low mortgage rates and frenzied buyer competition.

• 2025: We’re back to about 50%. In other words, we’ve returned to a more balanced playing field.

Source: Zillow, 8 Reasons Why Fall Could Be a Housing Market ‘Sweet Spot’ in 2025, July 20, 2025

What This Means If You’re Selling

In this new (or rather, old) normal, your pricing strategy matters more than ever.

A few years ago, sellers could push the price and still watch offers pour in. Not anymore. Buyers today have more options, tighter budgets, and a lot less urgency.

That means your first impression counts — big time. The first two weeks your home is on the market are critical. If your price isn’t right, buyers will scroll right past your listing, and once it sits too long, it can be tough to recover.

The Winning Formula for Today’s Market

Here’s the truth: sellers who cling to “2021 expectations” are often sitting on listings that go stale. But those who adapt to the market? They’re still seeing great results.

Because remember — if half of homes are selling below asking, that means the other half are selling at or above it. The difference is smart preparation and pricing.

Here’s how to set yourself up for success:

1. Prep your home like a pro. Handle the small repairs and touch-ups now. A well-presented home stands out — and can still attract top-dollar offers.

2. Price with strategy, not emotion. Don’t base your asking price on what others are listing for. Focus on what homes nearby have actually sold for — and lean on your agent’s expertise.

3. Stay flexible. Today’s deals often involve some negotiation. That might mean adjusting for repairs, covering closing costs, or finding other creative ways to make the deal work.

Bottom Line

The housing market has changed — but opportunity hasn’t disappeared.

If you want your home to be one of the listings that sells at or above asking, you need a plan that fits today’s market, not yesterday’s. Start by connecting with one of our experienced loan officers.