Seller Optimism High, But Market Conditions May Fall Short of Expectations

A recent survey by Clever Offers reveals that many home sellers remain optimistic about their prospects, despite the shifting dynamics in the housing market. While a significant portion of future sellers believes they will be able to sell at or above their asking price, recent data suggests that the reality may not align with their expectations.

Future Sellers Maintain High Hopes

According to the survey, conducted in April 2025, 77% of potential sellers do not expect to lower their asking price, indicating that they are confident about their homes’ appeal to buyers. This optimism is bolstered by the belief that their properties will generate strong interest from prospective buyers. However, while these expectations may seem reasonable in a competitive market, a closer look at current market data tells a different story.

The Gap Between Expectations and Reality

For those who sold their homes in 2024 and early 2025, the reality of the market was less favorable. According to the same survey, only 42% of recent sellers managed to sell at or above their asking price. The gap between asking prices and actual buyer offers has been widening, and a Redfin report from April 2025 highlighted that the difference between these prices is the largest it has been since May 2020.

“Although some parts of the country remain competitive, with prices still near all-time highs, many areas are beginning to see a shift in power from sellers to buyers as demand slows and inventory rises,” the survey’s analysis stated. This shift suggests that future sellers might be overly optimistic about the current market conditions.

High Seller Expectations Lead to Potential Disappointment

Despite the shifting market, the majority of future sellers, around 92%, expect strong buyer interest. Yet, only 77% of those who recently sold a home shared that sentiment. The optimism of future sellers appears to be disconnected from the reality of a market where lower-than-expected buyer interest could lead to price reductions.

The survey also explored sellers’ willingness to accommodate buyer demands. While 31% of recent sellers agreed to unexpected buyer requests, a larger 80% of future sellers expressed they would be open to doing so, highlighting the growing flexibility among sellers.

The Risk of Selling at a Loss

One of the more concerning trends emerging from the current market is the rise in sellers at risk of selling at a loss. As of June 2025, 6% of sellers were facing the possibility of selling for less than their asking price, a notable increase compared to last year. However, it’s important to note that this number remains relatively low by historical standards. The situation varies greatly by location—areas like Providence, Rhode Island, and New Brunswick, New Jersey, have seen minimal risk, with only 0.5% of homes in these markets at risk of loss. In contrast, cities like San Francisco are facing much higher risks, with nearly 20% of homes in that market vulnerable to selling below asking price.

Sellers’ Concerns: Longer Time on Market

While sellers continue to hold high hopes, the length of time a home spends on the market is a growing concern. For those who sold homes recently, 40% accepted an offer within two weeks. However, only 18% of future sellers believe they will achieve the same quick results. This discrepancy has led to a slight dip in optimism among those planning to sell, especially with 62% of future sellers acknowledging they have a backup plan in case their homes don’t sell as quickly as anticipated.

Looking Ahead: A Shift in Market Power

As the housing market continues to evolve, many sellers are adjusting to the fact that it may no longer be a “seller’s market.” With the rising number of sellers at risk of financial loss and the increasing gap between asking prices and actual offers, future sellers may face a more challenging environment than they anticipate.

In conclusion, while many sellers remain optimistic about achieving their goals, market data suggests that a shift in power is underway, and those entering the market may need to adjust their expectations. It will be important for sellers to be flexible, prepared for longer selling times, and ready to make concessions as the market continues to evolve. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.