Homes selling under ask mainly found in southern US metros including Florida cities

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 those with most new construction per capita according to an August 2024 report from MoveBuddha analyzing data from HUD and Census Bureau.

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

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

She’s seen most buyers making offers below asking price

Avila urges sellers “be realistic” consider both current market conditions comparative market when putting their homes market

“If you have property on market need make sure it’s top tier close sale reasonable price” adds Consolo "Sellers need look similar properties have sold [for] replicate features where possible"

Getting less for more

Of course doesn’t necessarily mean markets on list affordable—the median home price Miami still $675000 even buyers who manage purchase below asking still paying way more than would have had purchased 2019

“Though typical buyer able buy less listing these markets prices still well above pre-pandemic levels means buyers still paying pretty penny areas” says Jones

Still homebuyers should be happy learn where can lowball little get away Below top markets where homes sell most below asking plus how much expect pay

Cape Coral FL

This three-bedroom townhouse Coral Gables FL is market $310000 (Realtor.com)

Median listing: $349900

Percentage below: -8%

Sarasota FL

This three-bedroom Sarasota FL community listed $415000 (Realtor.com)

Median listing: $350000

Percentage below: -7.5%

New Orleans LA

This New Orleans LA listed $280000 (Realtor.com)

Median listing: $350000

Percentage below: -6.8%

Miami FL

Three-bedroom townhome Kendall Lakes listed $452000 Miami FL (Realtor.com)

Median listing: $675000

Percentage below: -6.7%

Austin TX

Four-bedroom Austin TX reduced now listed $748000 (Realtor.com)

Median listing: $624900

Percentage below: -5.3%

Tampa FL

New-construction Tampa FL reduced now listed at $574990 (Realtor.com)

Median listing: $449900

Percentage below:-4 .9 %

Jacksonville FL

Jacksonville FL indoor pool dropped now listed at$379999( Realtor .com) Median listing :$31000 Percentagebelow:-4 .8 %

Baton Rouge LA Four-bedroom remodeled Baton Rouge LA pool listed at$38000( Realtor .com) Medianlisting:$28900 Percentagebelow:-4 .4 %

OrlandoFL Three-bedroom OrlandoFL reduced nowlistedat$35000(Realtor .com) Medianlisting:$39900 Percentagebelow:-4 .1 %

NashvilleTN Four-bedroom NashvilleTNmarketfor$45990(Realtor .com) Medianlisting:$560640 Percentagebelow:-4 .1 %