Homeownership is becoming slightly more affordable as the housing market slows, giving buyers more negotiating power.

The typical U.S. home is selling for 1.8% less than its asking price, according to Redfin data. This is the largest discount in nearly two years. Houses that sell are taking about 56 days to go under contract, which is the longest span in nearly five years. In addition, more than half of listings are sitting on the market for at least 60 days without going under contract, which is similar to 2023 and 2024 during the same time of year but down from the prior month when 61% of listings were on the market for at least 60 days.

Data from Zillow shows homes selling in an average of 38 days, which is slower than last year but nearly 10 days faster than pre-pandemic norms. The report from Zillow also found nearly 23% of sellers cutting their home's list price in January. Though competition varies greatly by region, most buyers in the market today have a good chance of seeing a price cut on their saved listing, Zillow said.