Some Sellers Have Big Eyes – NMP Skip to main content

Some Sellers Have Big Eyes

Sep 17, 2025
Small Town USA
Staff Writer

House prices in small towns may not be what you’d expect

Houses in Glenwood Springs, Colo., sell lower below their asking price than anywhere else in the country, according to one study. Yet, small towns are some of the priciest places, says another report.

Located at the confluence of the Roaring Fork and Colorado Rivers, Glenwood Springs is a town of 20,000 and the county seat of Garfield County. It’s either that residents there have quite an outsized idea of what their houses are worth — or the housing market there just lacks luster.

Whatever the case, properties in the town sold for an average of half their asking prices last year, finds a study by RALH Construction, a builder of accessory dwelling units. On average, houses were listed for $1.4 million but sold for just $704,700, a difference of 49.8%.

Things were almost as bad in Santa Maria, Calif. Houses there were listed at $1.53 million on average but sold for a comparatively paltry $877,000 — 42.8% less than sellers had in mind when they put their places up for sale.

Many people assume small towns offer more affordable housing than big cities, and that’s mostly correct, but not always. Even where houses sold for the largest discounts, the selling price is often substantial.

Indeed, according to a LendingTree analysis, some small towns actually rival big cities when it comes to housing costs. The lender-to-borrower matching service found that Nantucket, Mass.; Vineyard Haven, Mass.; and Jackson, Wyo. are the most expensive small spots in the country with prices that rival those in many major metros.

Houses on average in Nantucket cost nearly as much as those in San Jose, Calif.: $1.114 million vs. $1.387 million, respectively. Vineyard Haven’s houses cost an average of $1.104 million, similar to those in San Francisco at $1.114 million, while Jackson is more expensive than Los Angeles — $954,600 for the average house compared to $825.300.

Of course, those three towns are prime vacation home locations. 

On the flipside, houses in Gillette, Wyo., and Williston, N.D. are the most affordable. Homes there run about $266,000 to $268,000, or three times the earnings of their current residents.

In its study, meanwhile, RALH Construction ranked the 10 worst places in terms of sellers obtaining their asking prices for houses. Three cities each in Tennessee and Alabama made the list.

But sellers in big city markets did better — far better. In San Francisco, for example, houses went for 16% over the asking price on average. And in San Jose, they sold for almost 12% above list, on average.

Sellers in much less expensive markets did very well, too, the study found. In Flint, Mich., they pocketed almost 11% more than they’d asked for. Sellers in Cape Girardeau, Mo., got almost 11% more, while those in Rochester, N.Y., received nearly 9% over list.

Still, the news isn’t good for overly ambitious sellers. The contractor found that 96% of the nearly 400 markets analyzed reported median sale prices lower than their original listings. The difference: a whopping $43,000.

Houses sold above asking prices were found in just 14 cities.

About the author
Staff Writer
Lew Sichelman has been covering the housing and mortgage sectors for 52 years. His syndicated column appears in major newspapers throughout the country.
Published
Sep 17, 2025
Investor Home Purchases Hold Steady Despite Housing Market Slowdown

Realtor.com report finds investors accounted for 11.3% of home purchases in 2025, as small investors gained market share and institutional buyers continued to retreat

Jun 23, 2026
Seller Concessions Hit Record Spring High, Giving Buyers More Leverage

Nearly half of home sales included seller concessions in May, creating new opportunities for borrowers to reduce upfront costs and negotiate better terms

Jun 23, 2026
Housing Supply May Matter More Than Rates: JPMorgan

New report argues factory-built housing could lower construction costs, expand affordable inventory, and create more opportunities for first-time homebuyers

Jun 23, 2026
Best And Worst Markets For Single-Parent Homeownership

LendingTree finds single parents in some metros are more than twice as likely to own a home as those in the nation's least affordable markets

Jun 22, 2026
One-Third Of Homeowners Expect To Refinance Despite Elevated Mortgage Rates

Many prospective refinancers carry mortgage rates above 5%, suggesting demand could accelerate if borrowing costs decline

Jun 19, 2026
FHA Continues To Drive New-Home Purchase Activity

Government-backed loans accounted for more than half of builder applications for a fifth straight month as loan sizes fell and buyers remained rate-sensitive

Jun 19, 2026