Why sellers need a reality check

The Price is Not Right

Right now, there is a growing gap between buyers and sellers in the market. 

Many sellers are still pricing homes as if it’s a seller’s market, but the data shows that it is no longer that way. As you’ll see in our first story, the gap between the typical home’s list price and sale price is the widest it has been in five years!

That is a perfect example of how sellers sometimes struggle to adapt, and also, why it’s so important for agents to help them get up to speed on what’s really going on in the market.

It all comes down to home pricing. That is an essential strategy to master, especially in these times with all the market fluctuations. Scroll down to today’s Foundation Plans for our continuing series on how to price a home, with our tips to help you make sure it gets done right.

And now, on with The Blueprint!

- James and David

Sellers are out of sync with buyers

Many sellers are struggling to adapt to the reality that it’s no longer a seller’s market. Asking prices are far outpacing what buyers are willing to pay, and the data confirms it. According to Redfin, the typical home is listed for 9% more than its ultimate sale price, a gap of $38,672, the widest since May 2020. Here’s what else the data shows from March:

• The median asking price was $469,729, while the median sale price was $431,057.

• List prices are up 6.2% year-over-year, but sale prices are only rising 2.5% to 2.7%.

• Home prices rose 4.8% in late 2024 and early January 2025, but demand has softened since then.

Our take

It’s clear: sellers are pricing based on yesterday’s market. Even January comps are outdated at this point. That’s why we’re seeing the largest list-to-sale price gap in four years, and why so many listings are sitting without offers. If homes aren’t priced to reflect current conditions, they’ll linger and drag down overall market activity. Scroll down to today’s Foundation Plans section, where we dive deeper into why pricing your listing correctly, from day one, has never been more important.

Freddie Mac’s mortgage rate declines for second consecutive week

The 30-year fixed-rate mortgage averaged 6.76% this week, according to Freddie Mac. That's down from 6.81% a week ago, and down significantly from the 7.22% average of a year ago, according to realtor.com and realestatenews.com. Still, rates remain above the 6.6% average seen in late March, just before the Trump administration announced a sweeping new round of tariffs on April 2. Here are the other trends to keep an eye on:

• While Freddie Mac shows a modest decline, Mortgage News Daily reported a slight uptick to 6.83% on May 1st, underscoring just how volatile the outlook remains.

• Pending home sales rose 6.1% month-over-month in April, but were still down 0.6% year-over-year.

• The median U.S. monthly housing payment is currently at an all-time high of $2,870

• To afford a median-priced home today, a household needs to earn $114,000/year, up 70% from 2020.

• Mortgage applications were down 4.2% overall for the week ending April 25th .

• Purchase applications dipped 4% week-over-week but remain 3% higher than the same time last year.

Our take

Mortgage rates are easing slightly, but buyers aren't feeling much relief. As this data shows, affordability remains the real obstacle. The small dip in rates is welcome, but it’s not enough to reverse the pressure buyers are facing, especially with inflation concerns and trade policy still clouding the outlook. As agents, it’s critical to manage expectations on both sides of the transaction. Even in this climate, deals can get done, but that requires staying informed, adapting quickly, and keeping clients’ expectations grounded in reality.

States ranking high in housing affordability and homebuilding

States in the South and Midwest are doing the most to address housing affordability and homebuilding, according to a new report from Realtor.com. The report ranks each state based on a weighted average of four key metrics:

• REALTORS® Affordability Score (25%)

• Share of income a median earner spends on a median-priced listing (25%)

• Permit-to-population ratio (40%)

• New-construction premium—how much more buyers pay for new homes (10%)

Based on their total scores, each state received a letter grade: A+ for scores above 77.5, A for 72.5–77.4, and so on.

Here are the top 10 states that scored the best in terms of addressing housing affordability and homebuilding.

1. South Carolina: 75.5 – A

2. Iowa: 71.6 – A-

3. Texas: 71.5 – A-

4. Indiana: 69.9 – B+

5. North Carolina: 68.8 – B

6. South Dakota: 67 – B

7. Nebraska: 66.7 – B

8. Arkansas: 65.2 – B

9. Georgia: 64.7 – B

10. Minnesota: 62 – B-

Our take

Realtor.com has done the industry a real service with this report. For once, we have a clear, data-driven benchmark showing which states are actually stepping up to address the housing shortage, and which are falling behind. Let’s not sugarcoat it: homeownership has become harder than it’s been in decades. The only long-term solution? Build more homes, and more types of homes, in more places. Elected officials need to act with the urgency this crisis demands. This isn’t just about real estate, it’s about economic vitality and upward mobility. If we want a dynamic, opportunity-rich America, we need to literally build toward that future.

Schematics

The news that just missed the cut

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Foundation Plans

Advice from James and David to win the day

We haven’t seen so many active listings on the market since 2020, but as we discussed in our first story, the gap between seller expectations and buyer budgets has also never been wider. Sellers are asking, on average, $40K more than buyers are willing to pay. The result? Longer days on market and sluggish sales. That’s why pricing strategy matters more than ever. In this edition, we continue our 3-part guide to effective pricing. In Part 1, we focused on knowing your listing inside and out. Today, in Part 2, we turn to the next critical step: gathering accurate and relevant comparable sales data.

2. Gather Comparable Sales Data

After identifying your search parameters, focus on finding comparable properties in three categories–sold, pending, and active listings. 

For each category, gather the following data:

• Average price for sold, pending, or active listings

• List-to-sold price ratio

• Days on the market

• Number of price reductions before selling

• Competing homes currently listed

• Incentives offered (such as those in new construction)

Then take these steps:

• Preview active and pending sales in person when possible, and reach out to listing agents of recently sold properties for additional insights. 

• Tour nearby new construction homes to help sharpen your pricing strategy, especially if your property is competing with newer builds. 

• When presenting your findings to sellers, highlight the fact that you’ve personally reviewed their competition, which is a service few others provide.

On Tuesday, we’ll bring you Part 3, with tips on how to devise a smart pricing strategy. You can’t do that, however, if you haven’t understood your listing and collected the pertinent sale comps first. For more guidance on how to price your listing effectively, use these resources.

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

“Just because you are doing a lot more doesn't mean you are getting a lot done. Don't confuse movement with progress!” – Denzel Washington

Progress isn’t about doing more, it’s about doing what matters most. Be intentional and focused in what you choose to do, friends. That’s how you build the business and life you want. Have a wonderful weekend, friends, and we’ll see you back here on Tuesday!

- James and David