Texas homeowner slashes asking price after house fails to attract a buyer

"The dynamic has shifted back toward more of what we call buyers' markets rather than sellers' markets."

A Texas homeowner found herself in a lengthy and costly selling process after repeatedly lowering the price of her house without finding a buyer.

She originally put the home on the market for $750,000. After months without a sale, it eventually sold for $650,000.

Here's what to know

According to the AP, cases like that of Murphy, Texas, finance director Liz Suder are becoming more common as homeowners lose bargaining power and turn more often to price cuts and seller concessions.

She had listed her four-bedroom, 3.5-bath home for $750,000 and, after more than a year on the market and $9,000 in repairs, ultimately sold it for $650,000.

Realtor.com data cited by the outlet showed the national median listing price at $419,250, down 1.2% from a year earlier and marking an 11-month stretch of annual declines. Roughly 21% of listings cut their original asking price, the highest share in four years.

The AP said a major reason for the change is borrowing costs. After briefly dipping below 6%, the average 30-year mortgage rate climbed to 7.4%, its highest level in nearly three years.

At First American Financial, chief economist Mark Fleming described the shift.

"The dynamic has shifted back toward more of what we call buyers' markets rather than sellers' markets," he told the outlet.

More background

Redfin data cited by the AP showed the 50 largest U.S. metro areas had about 63% more sellers than buyers. The number of buyers was around 929,000, the lowest level on record since 2013, while seller totals reached their highest point since 2020.

For many owners who need to move, that imbalance is delaying important plans.

Ethan Butner, a service manager in Troutdale, Oregon, is among those affected, according to the AP. His family has already accepted an offer on a larger home near Portland, but the move depends on selling their current house first. After listing it at $480,000, he cut the price by $30,000 and received only one offer, which later fell through.

What can be done?

The AP said sellers do not have many appealing options. They can lower the price, offer concessions, make repairs, or wait.

For those who cannot wait, that often means helping cover costs beyond the purchase price. Jake Krimmel, a senior economist at Realtor.com, said higher borrowing costs are reshaping the market.

"It's sort of like an indicator of where the market is right now, with buyers gaining leverage at the expense of sellers, and sellers doing more now to meet buyers halfway," Krimmel told the outlet.

Butner has replaced the flooring and added a new water heater and dishwasher to make his home more attractive, and he is still waiting for a sale.

"We've had this vision of being in our own home and all the kids having their own rooms and all the good stuff that comes along with that," he told the AP. "We definitely feel stuck at the moment."

Where can I learn more?

The housing slowdown is affecting markets in different ways.

• In Frisco, Texas, homes sold for 26% less than they did two years ago.

• Across the U.S., older condos are struggling as HOA fees rise above $11,000.

• In Jacksonville, builders are now undercutting resales as incentives erase the new-home premium.