Homebuyers Are Paying Less Than Asking Again — And the Discounts Are the Biggest in Over a Decade

Buyers Secure the Largest Discounts Since 2012

According to newly released Redfin data, buyers who successfully negotiated a discount in 2025 paid an average of 7.9% below the original list price, the steepest average cut in more than a decade.

In dollar terms, that equates to roughly $31,600 off a median original list price of $399,900.

Even when including buyers who paid at or above asking, the average discount across all transactions was 3.8%, or about $15,200. Notably, 62.2% of buyers paid less than list, the highest share since 2019 and a stark reversal from pandemic-era bidding wars.

2025 Home Price Discounts at a Glance

A Buyer’s Market Emerges as Demand Pulls Back

Redfin attributes the shift to what it describes as one of the strongest buyer’s markets in recent history. The firm estimates there were 47% more home sellers than buyers in 2025, giving house hunters leverage unseen since before the pandemic.

Mortgage rates hovering well above 6% continued to suppress demand, keeping many would-be buyers sidelined even as brief rate dips sparked temporary increases in mortgage applications, according to Mortgage Bankers Association data.

Redfin senior economist Asad Khan says the dynamics heading into 2026 favor negotiation rather than avoidance.

“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,” Khan said. “That could be a price cut, money toward closing costs, or funds for repairs.”

That advice marks a sharp contrast from the pandemic era, when buyers were told to shop well below their budget to account for runaway bidding wars.

Sellers Struggle to Reset Expectations

On the ground, agents describe a widening gap between seller psychology and market reality.

Redfin Premier Agent Connie Durnal in Dallas says the difference often comes down to pricing discipline.

Some sellers, she notes, are still anchored to peak-market valuations — even when comparable sales no longer support them.

Others are adapting quickly, listing realistically and benefiting from renewed buyer interest.

The result is a bifurcated market: overpriced homes linger, while well-priced listings still attract competition and, in some cases, sell above asking.

Condos and Sun Belt Metros Lead the Markdown Trend

Discounts were most pronounced in the condo market, where affordability pressures are compounded by rising HOA fees, insurance costs, and special assessments.

• Condo buyers who paid below list received an average 8.1% discount

• Single-family home buyers averaged 7.9%

• 68.1% of condo buyers paid under asking, higher than any other property type

Regionally, price cuts were deepest in several Sun Belt and Midwest metros:

Top markets for below-list discounts

• West Palm Beach: ~11% off

• Detroit

• Fort Lauderdale

• Pittsburgh

• Miami

By contrast, Seattle buyers who negotiated paid an average 5.7% below list.

Only four metros — San Francisco, Newark, San Jose, and Oakland — saw typical buyers pay above asking, largely due to strategic underpricing and renewed tech-sector demand in the Bay Area.

Why Price Cuts Can Strengthen the Housing Market

While discounts sting for some sellers, a market that clears at realistic prices is healthier than one that stalls.

As asking prices align with what buyers can afford, listings are more likely to close rather than sit idle or be withdrawn. That activity supports:

• Real estate agent commissions

• Mortgage origination pipelines

• Title, appraisal, and escrow services

• Home renovation and furnishings spending

Discount-driven volume can also limit downside risk. By preventing transaction freezes, price flexibility reduces the likelihood of a sharper correction that could exacerbate mortgage distress.

That matters as early warning signs persist. Mortgage delinquencies rose 18.6% year-over-year in December, according to VantageScore data.

What This Means for Homebuyers in 2026

The data suggests negotiating power has returned — but selectively.

Buyers willing to compromise on location, property type, or timing may find meaningful concessions, especially in condo-heavy or inventory-rich markets.

Sellers, meanwhile, face a clear choice: price to market or risk missing it entirely.

Frequently Asked Questions

Are home prices falling in 2025?
Prices are not collapsing nationally, but widespread discounts indicate sellers are adjusting expectations to meet buyer affordability limits.

Is 2026 a good year to negotiate on a home?
Yes. Elevated inventory and rate-constrained demand suggest buyers will continue to have leverage, particularly for price cuts and seller concessions.

Which homes are seeing the biggest discounts?
Condos and homes in Sun Belt and Midwest metros are experiencing the largest markdowns.

Are bidding wars completely gone?
No. Well-priced homes in high-demand markets can still sell above asking, but they are no longer the norm.

The Bottom Line

The housing market has entered a recalibration phase — not a crash, but a reset. Buyers are no longer chasing prices higher at any cost, and sellers are being forced to meet the market where it is, not where it was.

That adjustment may feel uncomfortable, but it’s how sustainable housing markets heal.

For homeowners, buyers, and lenders alike, realism — not speculation — is once again setting the tone.

Follow Mortgage.News for daily housing and mortgage market insights, or speak with a trusted lender to understand how today’s pricing dynamics affect your buying power.