In today’s housing market, setting the right price has become more important than ever. While overall asking prices haven’t declined, more sellers are making adjustments. According to Realtor.com, almost 20% of listings in May had price reductions—up 2.4 percentage points from last year. That’s the highest percentage of May listings with price cuts since Realtor.com began tracking this data in July 2016, showing that homeowners are reevaluating expectations to meet current buyer demand.
Overconfident Sellers May Be Pricing Too High
A recent Realtor.com survey found that 81% of potential sellers believe they’ll receive their asking price or more. That optimism is understandable—many homeowners have built substantial equity over the past few years. However, with higher mortgage rates and affordability concerns, buyers are being more cautious—and competition isn’t as fierce as it was during the pandemic boom.
Updates Help, but Pricing Still Matters
Home improvements like fresh paint, landscaping, or new fixtures can certainly help a home show well and sell faster. But experts say these updates don’t always justify a major price boost. Features like a desirable location, a larger lot, or unique amenities tend to have a bigger impact on value.
Pricing Too High Can Backfire
Homes that enter the market above what buyers are willing to pay may sit longer. According to Realtor.com, homes spent a median of 51 days on the market in May 2025—six days more than a year ago and roughly in line with prepandemic norms. If a home lingers too long, buyers may begin to wonder why—and sellers often end up lowering the price to spark interest.
Starting Strong Leads to Better Results
The best approach? Start with a price that reflects current market trends rather than past peaks, even if it means choosing a lower number than anticipated. Real estate professionals can provide helpful insights, recent comparable sales, and guidance to help sellers position their homes effectively. In today’s evolving market, thoughtful pricing can make all the difference.
Curious what your home could sell for today? Reach out for a local pricing analysis for expert insight and honest guidance.
