For the first time since the onset of the pandemic, homes sold during the four weeks ending June 23 sold for less than asking price, according to a new report from Redfin.

According to the analysis, homes sold for 0.3% less than asking price during the four week period analyzed. A year ago, the typical home sold for exactly its list price; two years ago, the typical home sold for 2% above its list price.

During the four week period ending June 23, just under one-third of homes sold over asking price, the lowest share of any June since 2020. Nearly 7% of sellers dropped their asking price, the highest level since November 2022.

The imbalance of supply and demand is increasing the likelihood of homes selling below asking price. For certain types of homes in certain regions of the country, there is more inventory than demand. New listings are up 8.2% year over year nationwide at the same time pending sales are down 4.3%, according to Redfin.

Median sale prices have increased the most in Anaheim, California (+16%); Nassau County, New York (+14.4%); New Brunswick, New Jersey (+13.8%); Newark, New Jersey (+13.6%); and West Palm Beach, Florida (+12.7%). Median sale prices declined year over year in San Antonio (-2.5%); Austin (-2.5%); Dallas (-0.9%); and Fort Worth, Texas (-0.8%)

Demand is waning for several reasons, including sky-high housing costs and record-breaking heat, according to Redfin. The median home-sale price is up 4.9% year over year to an all-time high of $397,250 and the typical home buyer’s monthly payment is $2.785, just $50 below the record high.

Redfin suggests that the growing likelihood that homes sell below asking price along with the high share of sellers lowering prices could mean sale-price growth loses momentum in the near-term.