A new Redfin report reveals a significant shift in the housing market: for the first time since the pandemic began, the typical US home is selling 0.3% below list price. Daryl Fairweather, Redfin's chief economist, provides insights into this trend.

Fairweather observes "early softening in the market," noting that buyers can now negotiate prices. She emphasizes that while price is important, it "shouldn't be the end-all-be-all," and buyers also have room for negotiation on other terms.

The increase in new home sales is creating more competition among sellers, leading to price drops and incentives. Fairweather notes that sellers are working harder to "meet buyers where they're at" in this changing market.

Regarding interest rates, Fairweather tells Yahoo Finance, "Buyers are so sensitive to rates that any little movement will pull some back into the market. If rates come down, we'll get buyers back into the market, and we'll... be back where we are in terms of affordability."

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This post was written by Angel Smith