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From Frenzy to “Normal”

Right now, about 50% of homes on the market are selling for less than their asking price, according to the latest data from Cotality.

But that isn’t necessarily bad news, even if it feels like it. Here’s why. The wild run-up over the last few years was never going to be sustainable. The housing market needed a reset, and data shows that’s exactly what’s happening right now.

The graph below uses data from Zillow to show how this trend has shifted over time. Here’s what it tells us:

2018–2019: 50–55% of homes sold under asking. That was the norm.

2021–2022: Only 25% sold under asking, thanks to record-low rates and intense buyer demand.

2025: 50% of homes are selling below asking. That’s much closer to what’s typical in the housing market.

Why This Matters If You’re Selling Your House

In this return to normal, your pricing strategy is more important than ever.

A few years ago, you could overprice your house and still get swarmed with offers. But now, buyers have more options, tighter budgets, and less urgency.

Today, your asking price can be make or break for your sale, especially right out of the gate. Your first two weeks on the market are the most important window because that’s when the most serious buyers are paying attention to your listing. Miss your price during that crucial period, and your sale will grind to a halt. Buyers will look right past it. And once your listing sits long enough to go stale, it’ll be hard to sell for your asking price.

The Ideal Formula

Basically, sellers who cling to outdated expectations end up dealing with price cuts, lower offers, and a longer time just sitting on the market. But homeowners who understand what’s happening are still winning, even today.

Because that stat about 50% of homes selling for under asking also means the other half are selling at or above – as long as they’re priced right from the start.

So, how do you set yourself up for success? Do these 3 things:

Prep your house. Tackle essential repairs and touch-ups before you list. If your house looks great, you’ll have a better chance to sell at (or over) your asking price.

Price strategically from day one. Don’t rely on what nearby homes are listed for. Lean on your agent for what they’ve actually sold for. And price your house based on that.

Stay flexible. Be ready to negotiate. And know that it doesn’t always have to be on price. It may be on repairs, closing costs, or some other detail. But know this: today’s serious buyers expect some give-and-take.

If you want your house to be one that sells for at (or even more than) your asking price, it’s time to plan for the market you’re in today – not the one we saw a few years ago. And that’s exactly why you need a stand-out local agent.

Bottom Line

You don’t want to fall behind in this market.

So, talk to an agent about what buyers in your area are paying right now. With their expertise and a strategy that gets your house noticed in those crucial first two weeks, anything is possible.

And for the small number of homeowners who do decide to sell on their own, data shows they’re still not confident they’re making a good choice.

A recent survey finds three out of every four homeowners who don’t plan to use an agent have doubts about whether that’s actually the right decision.

And here’s why. The market is changing – not in a bad way, just in a way that requires a smarter, more strategic approach. And having a real estate expert in your corner really pays off.

Here are just two of the ways an agent’s expertise makes a difference.

1. Getting the Price Right in a Market That’s Evolving

One of the biggest hurdles when selling a house on your own is figuring out the right price. It’s not as simple as picking a number that sounds good or selling your house for what your neighbor’s sold for a few years back – you need to hit the bullseye for where the market is right now. Without an agent’s help, you’re more likely to miss the mark. As Zillow explains:

“Agents are pros when it comes to pricing properties and have their finger on the pulse of your local market. They understand current buying trends and can provide insight into how your home compares to others for sale nearby.”

Basically, they know what’s really selling, what buyers are willing to pay in your area, and how to position your house to sell quickly. That kind of insight can have a big impact, especially in a market that’s balancing out.

2. Handling (and Actually Understanding) the Legal Documents

There’s also a mountain of documentation when selling a house, including everything from disclosures to contracts. And a mistake can have big legal implications. This is another area where having an agent can help.

They’ve handled these documents countless times and know exactly what’s needed to keep everything on track, so you avoid delays. And now that buyers are including more contingencies again and asking for concessions, your agent will guide you through each form step by step, making sure it’s done right and documented correctly the first time.

3. Selling Your House Quickly Even in a Shifting Market

Now that the number of homes for sale has grown, homes aren’t selling at quite the same pace they were. But you can still sell quickly if you have a proven plan to help your house stand out.

Just remember, homeowners don’t have the same network or marketing tools an experienced agent does. So, if you want the process to happen fast, you’ll likely want a pro by your side. 

Bottom Line

While everyone remembers what happened around the housing crash of 2008, that was the exception – not the rule. It hadn’t happened before, and hasn’t since. There were many market dynamics that were drastically different back then, too. From relaxed lending standards to a lack of homeowner equity, and even a large oversupply of homes, it was very different from where the national housing market is today. So, every headline about prices slowing down, normalizing, or even dipping doesn’t need to trigger fear that another big crash is coming.

Here’s something that explains why short-term dips usually aren’t a long-term deal-breaker.

What’s the Five-Year Rule?

In real estate, you might hear talk about the five-year rule. The idea is that if you plan to own your home for at least five years, short-term dips in prices usually don’t hurt you much. That’s because home values almost always go up in the long run. Even if prices drop a bit for a year or two, they tend to bounce back (and then some) over time.

Take it from Lance Lambert, Co-Founder of ResiClub:

“. . . there’s the ‘five-year rule of thumb’ in real estate—which suggests that most buyers can buffer themselves from mild short-term declines if they plan to own a property for at least that amount of time.”

What’s Happening in Today’s Market?

Here’s something else to put your mind at ease. Right now, most housing markets are still seeing home prices rise – just not as fast as they were a few years ago.

But in the major metros where prices are starting to cool off a little (the red bars in the graph below), the average drop is only about -2.9% since April 2024. That’s not a major decline like we saw back in 2008.

And when you look at the graph below, it’s clear that prices in most of those markets are up significantly compared to where they were five years ago (the blue bars). So, those homeowners are still ahead if they’ve been in their house for a few years or more (see graph below):

The Big Picture

Over the past 5 years, home prices have risen a staggering 55%, according to the Federal Housing Finance Agency (FHFA). So, a small short-term dip isn’t a significant loss. Even if your city is one where they’re down 2% or so, you’re still up far more than that.

And if you break those 5-year gains down even further, using data from the FHFA, you’ll see home values are up in every single state over the last five years (see map below):

That’s why it’s important not to stress too much about what’s happening this month, or even this year. If you’re in it for the long haul (and most homeowners are) your home is likely to grow in value over time.

Bottom Line

Yes, prices can shift in the short term. But history shows that home values almost always go up over five years. So, whether you’re thinking of buying or selling, remember the five-year rule, and take comfort in the long view.

When you think about where you want to be in five years, how does owning a home fit into that picture?

But here’s one thing that doesn’t get enough airtime. Real estate has always been about the long game. And when you look at the big picture, not just the latest clickbait headlines, it’s easy to see why so many people say it’s still the best investment you can make – even now.

According to the just-released annual report from Gallup, real estate has been voted the best long-term investment for the 12th year in a row. That’s over a decade of beating out stocks, gold, and bonds as America’s top pick.

And this isn’t new. Real estate usually claims the #1 title. But here’s what’s really interesting. This year’s results came in just after a rocky April for the stock and bond markets. It shows that, even as other investments had wild swings, real estate has held its ground. That’s likely because it gains value in a steadier, more predictable way. As Gallup explains:

“Amid volatility in the stock and bond markets in April, Americans’ preference for stocks as the best long-term investment has declined. Gold has gained in appeal, while real estate remains the top choice for the 12th consecutive year.”

That says a lot. Even though things may feel a bit uncertain in today’s economy, real estate can still be a powerful investment.

Yes, home values are rising at a more moderate pace right now. And sure, in some markets, prices may be flat in the year ahead or even dip a little – but that’s just the short-term view. Don’t let that cloud the bigger picture.

Real estate has a long track record of gaining value over time. That’s the kind of growth you can count on, especially if you plan to live in that home for a long time.

That’s part of why Americans continue to buy-in to homeownership – even when the headlines may sound a little uncertain. As Sam Williamson, Senior Economist at First American, says:

“A home is more than just a place to live—it’s often a family’s most valuable financial asset and a cornerstone to building long-term wealth.”

Bottom Line

Real estate isn’t about overnight wins. It’s about long-term gains. So, don’t let the uncertainty in a shifting market make you think it’s a bad time to buy. 

But here’s the thing you need to know about renting.

While it may feel like a safer bet today – and in some areas might even be less expensive month-to-month than owning – it can really cost you more over time.

In fact, a recent Bank of America survey found that 70% of aspiring homeowners worry about what long-term renting means for their future. And they’re not wrong.

Owning a home may seem way out of reach, but if you make a plan now and steadily work toward it, homeownership comes with serious long-term financial benefits.

Homeownership Builds Wealth Over Time

Buying a home isn’t just about having a place to live – it’s a step toward building your future wealth.

Why? Home prices typically rise over time, which means the longer you wait, the more expensive it is to buy. And even in some markets where home prices are softening today, the overall long-term trend speaks for itself (see graph below):

And as home values rise, so does your equity when you’re a homeowner. That’s the difference between what your home is worth and what you owe. So, with every mortgage payment, that equity grows. Over time, that becomes part of your net worth.

Today, the average homeowner’s net worth is nearly 40X greater than that of a renter. That’s a shocking difference, and the dollars in the visual below don’t lie (see graph below):

And it’s one of the big reasons why Forbes says:

“While renting might seem like [the] less stressful option . . . owning a home is still a cornerstone of the American dream and a proven strategy for building long-term wealth.”

The Biggest Downside of Renting

So, short-term, why does renting feel like a simpler choice? Lower monthly payments, less responsibility, no strings attached. But long-term? It can sting.

For decades, while home prices have been rising, rent has gone up too. And while rent has held rather steady more recently, history shows the overall trend is up and to the right. That makes saving for a home more complicated than ever (see graph below):

That kind of financial uncertainty has a real impact. In the same Bank of America survey, 72% of potential buyers said they worry rising rent could affect their current and long-term finances.

Because rent doesn’t build wealth. It doesn’t come back to you later. It pays your landlord’s mortgage – not yours.

So, whether you rent or own, you’re paying a mortgage. The question is: whose mortgage do you want to pay?

Renting vs. Buying: What Really Matters

Think of it this way. Renting means your money is gone once you pay it. Owning means your payment builds equity – like a savings account you can live in. Sure, buying comes with responsibility. But it also comes with the kind of reward that grows over time. And that’s why you need a solid plan to get there.

As Joel Berner, Senior Economist at Realtor.com, explains:

“Households working on their budget will find it much easier to continue to rent than to go through the expenses of homeownership. However, they need to consider the equity and generational wealth they can build up by owning a home that they can’t by renting it. In the long run, buying a home may be a better investment even if the short-run costs seem prohibitive.”

Bottom Line

Renting may feel more do-able today. But over time, it could cost you more – without helping you build anything for your future.

That may leave you wondering what you should expect when you sell. Let’s break it down and give you some actionable tips on how to make sure your house is one that sells quickly.

Homes Are Still Selling Faster Than Pre-Pandemic

The first thing you should know is that, in most markets, things have slowed down a little bit. While you may remember how quickly homes sold a few years ago, that’s not what you should expect today.

Now that inventory has grown, according to Realtor.com, homes are taking a bit longer to sell in today’s market (see graph below):

But before you get hung up on the ten-day difference compared to the past few years, Realtor.com will help put this into perspective:

“In April, the typical home spent 50 days on the market . . . This marks the 13th straight month of homes taking longer to sell on a year-over-year basis. Still, homes are moving more quickly than they did before the pandemic . . .”

By this comparison, if your house does take a little more time to sell this year, it’s not really a concern. It’s actually still faster than the norm. Plus, it gives you a bit more time to find your next home, which is welcome relief when you’re trying to move, too.

Just remember, some homes sell in less time than this. Some take even longer. So, what’s the real difference? Why do some homes attract eager buyers almost instantly, while others sit and struggle?

It comes down to having the right agent and strategy. Here are a few tips you need to know. 

1. Price It Right

One of the biggest reasons homes sit on the market is overpricing. Many sellers want to shoot for a higher price, thinking they can lower it later – but that backfires by turning buyers away.

What to do: Work with an agent to make sure your house is priced right. They’ll analyze recent comparable sales (what other homes have sold for recently in your area), so you know you’re pricing appropriately for today’s market and what buyers are willing to pay. As Chen Zhao, Economic Research Lead at Redfin, explains:

“My advice to sellers is to price your home fairly for the shifting market; you may need to price lower than your initial instinct to sell quickly and avoid giving concessions.”

2. Focus on the First Impression

A messy yard or a house that needs paint? It’ll turn buyers off. Since buyers decide within seconds whether they like a home, a good first impression is key.

What to do: Outside, clean up your front yard, tidy up your landscaping, power wash walkways, and add fresh mulch. Inside, declutter and depersonalize. And consider minor touch-ups like repainting in a neutral tone. Your agent will offer advice on what to tackle.

3. Strong Marketing & High-Quality Listing Photos

If your listing or your photos don’t look professional, you could have trouble drawing in buyers who think you’re trying to cut corners.

What to do: Instead, lean on your agent’s skills, expertise, and resources. They’ll help you make sure you have:

High-resolution listing photos showing the home in its best light.

Detailed descriptions that highlight differentiating features of your house.

Your listing on multiple platforms, including major real estate sites and social media.

4. The Location of the Home

You may have heard the phrase “location, location, location” when it comes to real estate. And there’s definitely some truth to that. Homes in highly sought-after neighborhoods tend to sell faster.

What to do: While you can’t change where your house is located, your agent can highlight the best features of your neighborhood or community in your listing. By showcasing what’s great about your area, they can help draw buyers into what life would look like in your house.

Bottom Line

Homes that sell quickly don’t necessarily have better features – they have better agents and a better strategy.

Some Highlights

Before you even start looking at homes, there’s something you should do first – and that’s get pre-approved for your mortgage.

Pre-approval is when a lender checks your finances and decides how much you’re qualified to borrow for your home loan. This helps you determine your budget and makes your offer stand out for sellers.

Here’s a quick rundown of the 3 most common missteps sellers are making, and how partnering with an expert agent can help you avoid every single one of them.

1. Pricing the Home Too High

According to a survey by John Burns Real Estate Consulting (JBREC) and Keeping Current Matters (KCM), real estate agents agree the #1 thing sellers struggle with right now is setting the right price for their house (see graph below):

And more often than not, homeowners tend to overprice their listings. If you aren’t up to speed on what’s happening in your local market, you may give in to the temptation to price high so you can have as much wiggle room as possible to negotiate. You don’t want to do this.

Today’s buyers are more cautious due to higher rates and tight budgets, and a price that feels out of reach will scare them off. And if no one’s looking at your house, how’s it going to sell? This is exactly why more sellers are having to do price cuts.

To avoid this headache, trust your agent’s expertise from day 1. A great agent will be able to tell you what your neighbor’s house just sold for and how that impacts the value of your home.

2. Skipping Repairs

Another common mistake is trying to avoid doing work on your house. That leaky faucet or squeaky door might not bother you, but to buyers, small maintenance issues can be red flags. They may assume those little flaws are signs of bigger problems — and it could cost you when offers come in lower or buyers ask for concessions. As Investopedia says:

“Sellers who do not clean and stage their homes throw money down the drain. . . Failing to do these things can reduce your sales price and may also prevent you from getting a sale at all. If you haven’t attended to minor issues, such as a broken doorknob or dripping faucet, a potential buyer may wonder whether the house has larger, costlier issues that haven’t been addressed either.”

The solution? Work with your agent to prioritize anything you’ll need to tackle before the photographer comes in. These minor upgrades can pay off big when it’s time to sell.

3. Refusing To Negotiate

Buyers today are feeling the pinch of high home prices and mortgage rates. With affordability that tight, they may come in with an offer that’s lower than you want to see. Don’t take it personally. Instead, focus on the end goal: selling your house. Your agent can help you negotiate confidently without letting emotions cloud your judgment.

At the same time, with more homes on the market, buyers have options — and with that comes more negotiating power. They may ask for repairs, closing cost assistance, or other concessions. Be prepared to have these conversations. Again, lean on your agent to guide you. Sometimes a small compromise can seal the deal without derailing your bottom line. As U.S. News Real Estate explains:

“If you’ve received an offer for your house that isn’t quite what you’d hoped it would be, expect to negotiate . . . the only way to come to a successful deal is to make sure the buyer also feels like he or she benefits . . . consider offering to cover some of the buyer’s closing costs or agree to a credit for a minor repair the inspector found.”

The Biggest Mistake of All? Not Using a Real Estate Agent

Notice anything? For each of these mistakes, partnering with an agent helps prevent them from happening in the first place. That makes trying to sell your house without an agent’s help the biggest mistake of all.

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