Homes now selling below list price, prospective buyers are weighing two very different paths forward
For years, many Americans hoping to buy a home have followed the same strategy. Wait for mortgage rates to fall and hope housing prices become more affordable.
But 2026 is presenting a more complicated picture.
Mortgage rates have climbed again, making monthly payments more expensive for buyers. At the same time, a new report suggests home shoppers now have something they have lacked for years: negotiating power.
The shift is creating a difficult decision for prospective buyers. Should they continue waiting for borrowing costs to ease, or take advantage of a market that increasingly favors them?
Real estate experts say the answer may depend less on trying to predict mortgage rates and more on understanding how much leverage buyers currently have.
Homes are selling below asking price again
One of the biggest changes in today’s housing market is that sellers are no longer consistently getting their asking prices.
A recent analysis from Realtor.com found that the typical home in the United States is now selling for less than its listed price.
That marks a dramatic reversal from the pandemic housing boom of 2021 and 2022, when buyers frequently offered more than asking price just to compete for limited inventory.
Higher borrowing costs have cooled demand, giving buyers more room to negotiate and making sellers more willing to compromise.
For many shoppers, it is the first time in years they have entered the market with a stronger position.
Buyers have more negotiating power
The balance of power in real estate has shifted noticeably.
Homes that sell quickly still tend to command prices close to what sellers want. But listings that sit on the market for several weeks often require price reductions or concessions to attract buyers.
According to Realtor.com’s findings, homes that go under contract within the first month generally perform better than average against their asking prices.
Once a listing remains available for several months, sellers typically become more flexible.
That means buyers may have opportunities to negotiate purchase prices, closing costs or repairs in ways that were nearly impossible during the housing frenzy of recent years.
Real estate investor believes this environment creates opportunities for buyers who are prepared. Today’s market offers discounted pricing, better negotiating leverage and access to quality properties at lower prices than buyers may have seen in the recent past.
Mortgage rates remain the biggest obstacle
Despite improving conditions for buyers, affordability remains a challenge.
The average 30-year fixed mortgage rate climbed to 6.52% in mid June, according to Freddie Mac. It marked the third increase in four weeks and followed a rise in inflation that reached its highest level in three years.
Higher inflation often limits the Federal Reserve’s ability to lower interest rates, which can keep mortgage rates elevated.
That leaves buyers facing a difficult question.
Some are choosing to wait, hoping borrowing costs eventually decline and improve affordability.
Others worry that waiting could mean missing out on favorable home prices or negotiating advantages that may not last.
The uncertainty has become one of the defining features of the 2026 housing market.
Where you live matters more than ever
The housing market is not moving in the same direction everywhere.
In the South and West, buyers currently hold the upper hand. Inventory has increased in many areas, giving shoppers more choices and reducing competition. The Northeast tells a different story. Homes there are still commonly selling above asking price, making it one of the few regions where sellers continue to enjoy a strong advantage.
The Midwest falls somewhere in between, with analysts expecting conditions to shift throughout the remainder of the year.
These regional differences mean the best strategy for buyers may depend heavily on local market conditions rather than national trends.
Experts say buyers may need a new mindset
Many prospective homeowners have spent the past four years waiting for mortgage rates to fall dramatically.
Some experts are questioning whether that relief will arrive anytime soon. Buyers may benefit from adjusting their expectations and focusing on what they can control instead of trying to time the market perfectly.
That means evaluating whether a home fits their budget, long term goals and lifestyle rather than waiting indefinitely for lower rates.
Of course, buying a home in 2026 is still expensive.
Mortgage rates remain high by recent standards and home prices, while cooling in some areas, are still elevated historically.
But there is one important difference between today’s market and the frenzy that defined the pandemic years.
Buyers finally have leverage.
Whether they choose to use it now or continue waiting for rates to fall may be one of the most important financial decisions many Americans make this year.