The homes defying the housing slowdown: Inside the properties still selling ABOVE asking price – and the features buyers are fighting over

For much of the US housing market, the balance of power is finally shifting towards buyers.

There are more homes to choose from, sellers are trimming prices and prospective buyers are taking their time.

But there is one striking exception: the properties people really want.

More than one in four US homes that sold recently, 25.9 percent, went for more than the asking price, up from 25 percent a year earlier, according to new data from Redfin.

And while buyers may have more negotiating power overall, certain homes are still prompting the kind of bidding wars that have become far less common during the housing slowdown.

So what makes these properties so irresistible? According to Redfin agents, the magic combination is move-in-ready condition and a desirable neighborhood – two qualities that can make buyers willing to stretch beyond the seller’s asking price.

Redfin agents generally describe a move-in ready, or ‘turnkey,’ home as one that buyers can live in immediately without needing to take on major repairs or renovations. 

That means the major systems like HVAC, plumbing and electrical are functional, appliances work, and there are no obvious structural problems, while the paint, flooring and other finishes are generally in good condition. 

Meanwhile, a desirable location is an area that combines strong neighborhood appeal with convenience and long-term value. Good schools, low crime, walkability, nearby parks and amenities, easy commuting and access to public transit can all make an area more attractive to buyers. 

The finding comes as the wider market becomes increasingly buyer-friendly. New listings rose 2.1 percent week over week in the four weeks ending August 30, reaching 383,795 – the highest level since August 2022.

Active listings also increased 0.4 percent to more than 1.51 million, giving house hunters more choice.

But demand is failing to keep pace. Pending home sales slipped 0.1 percent week over week and 2.5 percent year over year to 308,282, their lowest level since February.

That mismatch means buyers can increasingly afford to be picky. Yet when a home ticks enough boxes, they are still prepared to compete.

The appeal of a move-in-ready property is obvious in an era when borrowing costs remain painfully high.

The average 30-year fixed mortgage rate was 6.66 percent for the week ending August 27, while the daily rate had climbed to 6.91 percent by September 2. 

Redfin puts the typical monthly mortgage payment at $2,592 – up 0.7 percent from a year earlier. 

Location is the other crucial ingredient. A desirable neighborhood can mean different things to different buyers, but Redfin’s latest data show that location remains powerful enough to keep competition alive even while the national market cools.

Some of the strongest price growth is concentrated in particular metropolitan areas. San Francisco recorded a 9 percent year-over-year increase in median sale prices, followed by West Palm Beach at 8.1 percent.

Cincinnati rose 7.8 percent, while Milwaukee and Pittsburgh both recorded 7.4 percent increases.

By contrast, some markets are moving in the opposite direction. Median sale prices fell 7.1 percent year over year in Austin and 6.2 percent in Seattle.

‘Prices are falling in the places where sellers outnumber buyers,’ Redfin Chief Economist Daryl Fairweather previously told the Daily Mail. ‘In the south, you have more sellers of new construction because of the building boom that happened during the pandemic, and fewer buyers because they are facing high insurance and property taxes on top of high mortgage rates.’ 

‘In the midwest and northeast there are more buyers and fewer sellers because in places like Cincinnati and Rochester homes are still affordable to middle class buyers, but there isn’t much new construction.’ 

That growing divide shows why the national housing market can look buyer-friendly while individual properties remain fiercely competitive. The overall median US sale price was $398,632, up 2.2 percent year over year.

But the median asking price actually slipped 0.1 percent, while 20.9 percent of listings had undergone a price reduction, up from 20.2 percent. 

In other words, sellers increasingly have to meet buyers halfway – unless their property is one of the homes that stands out.

The typical property is also taking 45 days to sell, while 30.4 percent of homes go off the market within two weeks.

And while the number of people actively searching for property appears to be cooling – Google searches for ‘homes for sale’ were down 13 percent from a month earlier – there is still competition for the right house.

For sellers, the message is increasingly clear: simply putting a property on the market is no guarantee of a bidding war.

But a home that is ready to occupy and sits in a location buyers desperately want can still buck the trend.

For buyers, meanwhile, the changing market brings an unusual mix of opportunities and frustration.

There are more properties available, greater negotiating power and growing evidence that some sellers are lowering their expectations.

But if the perfect house appears – particularly one that requires little work in a coveted neighborhood – waiting for a bargain could mean watching someone else snap it up.