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Homes Sell Below List Price in US for First Time Since March 2021

The housing market has cooled off a bit this year as higher mortgage rates keep buyers on the sidelines.

A "For Sale" sign outside a house in Albany, California.

A "For Sale" sign outside a house in Albany, California.

Photographer: David Paul Morris/Bloomberg

The average US home is selling below its asking price for the first time in nearly 18 months, according to data from online brokerage Redfin.

The shift is largely because of surging mortgage rates, which have dented affordability and kept many would-be buyers on the sidelines, forcing sellers to accept lower prices. The average sale-to-list price ratio fell to 99.8% in the four-week period ended Aug. 28. It hasn’t been below 100% since March 2021, Redfin said.