The bidding war market that defined the pandemic years is no longer the norm, and sellers are starting to feel the difference. A new Realtor.com report shows that the average home is now selling below its asking price, a shift from 2021 and 2022 when over-asking sales were common in much of the country.
Homes that close around the four-week mark are the best-performing properties in today’s market. They sell for 1.8% above the monthly average for comparable properties. On the other hand, homes that sit for roughly 18 weeks close 1.3% below expectations.
“The pandemic gave sellers a free pass on pricing and that pass has expired,” said Joel Berner, senior economist at Realtor.com. “Today, an overpriced home doesn’t just sit — it gets stale, loses leverage and sells for less than it would have if it had been priced right from the start. Price it right and buyers come to you. Price it wrong and you’re chasing them. Four weeks in, the market has already delivered its verdict — you’ve either got competing offers or you’re about to cut your price.”
The report highlights that four weeks have become the defining window for a listing when price reductions peak. During that time, a home typically reveals whether the seller priced it right or too high. Market temperatures, however, shape when the peak arrives. In 2021, price reductions peaked at week three, while so far in 2026, the peak has pushed out to week six.
During 2021 and 2022, many homes were selling above asking price, often with multiple offers and limited time on market. Now, the average home is closing below its final list price, and the gap between initial pricing and final sale price has widened. That shift began when mortgage rates rose sharply from 2022 to 2023, according to Realtor.com.
“We’ve gone from a market where sellers could price aggressively and still get above asking, to one where overpricing has real consequences,” said Berner. “Buyers have more leverage than they’ve had in years, and that shows up clearly in the data.”
As of March 2026, the average condo sells for 97.9% of its final list price, compared to 99.2% for single-family homes. Condo list prices have also fallen 6% since March 2022, while single family list prices have grown 7.5% over the same period.
The report also notes that builders are competing harder for buyers than sellers of existing homes and are more willing to make concessions during final negotiations.
Homes priced between $750,000 and $2 million, which were among the most competitive during the bidding war years, are now among the weakest performers. Properties in this range are more likely to sell below asking.
By comparison, homes priced between $350,000 and $500,000 have remained relatively stable, performing much closer to overall market averages thanks to steadier demand.
Regional differences are also playing a major role in pricing outcomes. The Northeast remains the only region where homes still, on average, sell above asking price. The Midwest is trending in that direction and could see above-asking sales again later this year.
The South and West tell a different story. Both regions have remained in buyer-favored territory. These regions also have more homes for sale than they did before the pandemic.
In contrast, the Northeast and parts of the Midwest continue to operate with tighter supply, preserving some of the seller leverage that has defined those markets since 2020.