This one statistic clearly shows the housing market’s post-boom recalibration

The housing market experienced a significant surge in demand during the pandemic due to low interest rates and remote work. This rapid demand outpaced the ability of housing supply to keep up, leading to soaring home prices. Home prices peaked in mid-2022, marking the end of the boom and the start of a cooling phase. A key indicator of market changes is the percentage of homes selling below their initial list price, which has been increasing since 2021. The prevalence of homes selling below list price varies geographically, with Sun Belt markets showing the highest rates. Northeastern and Midwestern metros are generally more resilient, with fewer homes selling below list price. Some regions like San Francisco and San Jose show signs of recovery thanks to the AI boom. Real estate agents observe that some sellers are adjusting to the market shift while others are not. A Redfin analysis illustrates these trends using annual MLS data. The report compared original list prices with final sale prices.