T
he US housing market is experiencing a shift, with some areas cooling down while others remain hot. A Northern California real estate agent recently shared on Reddit that sellers need to adjust their expectations, as the market has changed significantly since 2021. With layoffs increasing, wages stagnant and interest rates over 7%, listings are sitting for weeks even after prices are lowered.

    Some homeowners still expect 2021-level demand and pricing, but this is not realistic. Commenters pointed out that the market is now heavily local, with areas like Westchester, New York and Columbia, South Carolina seeing homes sell quickly, while others in California and Texas are slowing down.

    In markets where sales are slowing, unrealistic pricing is a common issue. A San Diego agent shared an example of a client who wanted to list their home at $1.4 million based on a nearby renovated home, despite needing $120,000 in updates to match it. "People are being very cautious with their purchases," the agent said. "It will sell at the right price point, but many people have incredibly unrealistic expectations of what their homes are worth."

    Buyers are also playing it safe, with one Redditor sharing that they made a below-list offer on a home that was rejected, only to be accepted a week later when the seller came back. Another commenter shared that they completed an option period 16% under list price on a home, including some seller repairs before close.

    The frustration is not limited to realtors or buyers, with one commenter describing a foreclosure that sat on the market for over a year at the same price as a new build. When the bank finally matched a buyer's earlier offer, the home still sat for months. "Banks are dumb!" the commenter wrote.