Deep price cuts opened a rare window for negotiation in 2025’s cooling market
Homebuyers who managed to close in 2025 did something many thought impossible during the pandemic boom: they routinely paid less than asking.
New data from real estate giant Redfin showed that buyers who secured a discount shaved an average of 7.9% off the original list price, the deepest cuts since 2012. In dollar terms, that translated to roughly $31,600 off a median original list price of $399,900.
Across all buyers, including those who paid list or above, the average discount was 3.8%, or about $15,200, and nearly two‑thirds of 2025 buyers (62.2%) paid less than list – the highest share since 2019.
Discounts widen as buyers pull back
Redfin’s researchers tied the shift to what they describe as the strongest buyer’s market in recent history, with a reported 47% more home sellers than buyers, giving house hunters far more choice and bargaining power than during the pandemic boom.
Elevated mortgage rates hovering well above 6% and still‑high prices kept many would‑be purchasers on the sidelines in 2025, even as lower‑rate episodes briefly lifted mortgage applications, Mortgage Bankers Association data showed.
“Homebuyers in 2026 shouldn’t write off homes that are slightly above their budget because there’s a good chance they’ll get some sort of concession from the seller, be it a price cut, money toward closing costs or funds for repairs,” said Redfin senior economist Asad Khan.
“This marks a reversal from the pandemic homebuying frenzy, when house hunters were advised to search for homes below their budget because fierce bidding wars were causing properties to sell far above the asking price.”
Roughly one‑quarter (26.1%) of buyers who paid below list in 2025 received at least 10% off – the highest share since 2012 – while another 27.8% secured 5–10% discounts.
Sellers struggle to reset price expectations
On the ground, some agents describe a widening gap between what sellers wanted and what buyers would tolerate.
“Some sellers are recognizing the market has changed and others are not,” said Connie Durnal, a Redfin Premier agent in Dallas.
“I have one seller who overpaid for their home a few years ago and wants to list it at $950,000. The problem is recent comps call for a list price of $825,000. I have another seller who paid $400,000 for their home but was willing to list it at $385,000, which was a great strategy. Because the home was fairly priced, it got multiple offers and sold for $10,000 over the asking price.”
Condos, Sun Belt metros lead markdowns
Condos saw the steepest cuts: buyers who paid below list on a condo in 2025 received an average 8.1% discount, edging out single‑family homes at 7.9%.
Overall, 68.1% of condo buyers paid under asking, a higher share than for detached or townhouse buyers, as rising HOA dues, insurance costs and special assessments weighed on demand.
Regionally, West Palm Beach led the nation, with typical below‑list buyers getting nearly 11% off, followed by Detroit, Fort Lauderdale, Pittsburgh and Miami.
On the other hand, Seattle buyers who paid under list received average discounts of just 5.7%. Only four metros – San Francisco, Newark, San Jose and Oakland – saw typical buyers pay a premium over asking, often reflecting deliberate underpricing strategies and, in the Bay Area, renewed tech‑driven demand.
More transactions support broader housing‑market health
Price cuts are painful for some sellers, but a market that clears at realistic prices is healthier than one that freezes.
As discounts bring asking prices closer to what buyers are willing – and able – to pay, more listings turn into closed sales instead of languishing or being withdrawn. That churn supports real‑estate commissions, mortgage origination pipelines, title and appraisal work and the downstream housing ecosystem of renovations and furnishings.
Over time, if discounts help keep volumes from collapsing, they reduce the risk of a deep downturn and set a base for recovery once rates eased. Discounts also help prevent a sharper price correction that would worsen delinquencies, which rose 18.6% in December from a year earlier, VantageScore data showed.
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