The days of fierce bidding wars and all-cash offers over asking price are fading into the rearview. As mortgage rates have fallen, the balance of power in the housing market is shifting into the hands of buyers.

In fact, the typical U.S. home has sold for less than the asking price since August 2022, a reversal from the pandemic-driven peak when homes were going for 3.1% over list on average, according to a Realtor.com report issued.

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Buyer attitudes have shifted, says Desiree Avila, a Realtor in South Florida. “They are no longer willing to buy a house sight unseen without an inspection or without an appraisal because it’s cheap to borrow money. On the contrary, buyers are now more demanding and particular in what they are willing to accept.”

That change in market dynamics is playing out most dramatically in the South, particularly Florida, where a flood of new inventory has given purchasers the upper hand, according to Realtor.com senior economist Hannah Jones. She noted that all 10 of the top metros where homes are selling for the most below asking price are located in the region.

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The pandemic-era glut of supply combined with higher mortgage rates has flipped the script. Buyers in markets like Cape Coral, Sarasota and Miami now routinely negotiate prices well below the asking level – 8%, 7.5% and 6.7% on average, respectively.

“It’s all about supply and demand,” says Matthew Consolo, owner of Premier Point Vacations, which manages properties across Florida. “When supply far overshadows demand, buyers hold most of the bargaining chips.”

Of course, that doesn’t mean homes in those markets are suddenly affordable for the typical household. Even with the discounts, prices remain well above pre-pandemic levels. 

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For instance, the median home listing in Miami is still a lofty $675,000.

“Though the typical buyer has been able to buy for less than listing price in these markets, home prices are still well above pre-pandemic levels, which means buyers are still paying a pretty penny for a home in these areas,” Jones said.

Still, for those able to take advantage, the top markets where homes are selling for the most below asking include:

– Cape Coral, FL: Median list price $349,900, sells 8% below asking
– Sarasota, FL: Median list price $350,000, sells 7.5% below asking
– New Orleans, LA: Median list price $350,000, sells 6.8% below asking
– Miami, FL: Median list price $675,000, sells 6.7% below asking
– Austin, TX: Median list price $624,900, sells 5.3% below asking
– Tampa, FL: Median home listing price: $449,900, sells 4.9% below asking
– Jacksonville, FL: Median home listing price: $310,000, sells 4.8% below asking
– Baton Rouge, LA: Median home listing price: $289,000, sells for 4.4% below asking
– Orlando, FL: Median home listing price: $399,000, sells for 4.1% below asking
– Nashville, TN: Median home listing price: $560,640, sells for 4.1% below asking

The days of bidding wars and all-cash offers may be fading, but the housing affordability crisis is far from over. For now, it seems southern buyers hold the bargaining chips.

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