As demand cools and listings pile up, buyers are offering well below the list price
February 5, 2026
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The typical homebuyer who paid below asking price in 2025 received a 7.9% discountthe largest since 2012.
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Nearly two-thirds of buyers paid less than list price, the highest share since before the pandemic.
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Condo buyers and shoppers in Florida metros saw the deepest price cuts.
Increasingly, the price in the home listing is not the price the home-seller expects to get. New data reveal that buyers were able to secure significant discounts in 2025, simply by making a lower offer.
The typical homebuyer who purchased a home for less than the asking price in 2025 received a 7.9% discount, according to a new analysis from real estate broker Redfin. That marks the biggest discount since 2012 and reflects a sharp shift from the pandemic-era frenzy, when bidding wars routinely pushed homes above list price.
In dollar terms, that discount amounts to about $31,592, based on last years median original list price of $399,900. Even when factoring in all buyersnot just those who negotiated lower pricesthe average discount was $15,196, or 3.8%.
A major shift in the housing market
Discounts are becoming the norm rather than the exception, the analysis found. Roughly 62.2% of all homebuyers in 2025 paid less than the original list price, the highest share since 2019. By contrast, just 22.8% paid more than askingthe lowest share since 2019while 15.6% paid exactly the list price, a figure that has remained relatively stable over time.
The growing prevalence of discounts is tied to a historic imbalance in the market. There are now 47% more home sellers than buyers, giving shoppers more options and far more negotiating power than theyve had in recent years.
High mortgage rates and elevated home prices have sidelined many would-be buyers, while some sellers have been slow to adjust to softer demand.
As a result, price cuts are spreading, and some homeowners are choosing to delist altogether, hoping for a more favorable market down the road.
Buyers can afford more than they think
Homebuyers in 2026 shouldnt write off homes that are slightly above their budget because theres a good chance theyll get some sort of concession from the seller, said Redfin Senior Economist Asad Khan. This marks a reversal from the pandemic home-buying frenzy, when house hunters were advised to search below their budget because properties were selling far above asking price.
Khan noted that pricing homes has become increasingly difficult as market conditions shift quickly and vary widely by location. While demand remains resilient in some areas, it has softened rapidly in many others.
The share of buyers landing especially steep discounts has also surged. About 26.1% of buyers who paid below the asking price in 2025 received a discount of 10% or more the highest share since 2012. Another 27.8% secured discounts between 5% and 10%, while fewer than half received smaller reductions of under 5%.
On the ground, agents say sellers expectations are often shaped by when and how they bought their homes. In Dallas, Redfin Premier agent Connie Durnal said some sellers remain anchored to prices that no longer match todays market.
A different pricing landscape
I have one seller who overpaid a few years ago and wants to list at $950,000, but recent comps support closer to $825,000, Durnal said. Another seller priced below what they paid, which generated multiple offers and ultimately sold above asking. Pricing realistically makes all the difference.
Mortgage rates are another factor. In Milwaukee, Redfin Premier agent Ben Ambroch said many homeowners locked in ultra-low rates during the pandemic and are reluctant to sell unless they can afford the higher monthly payments that come with todays financing costs.
Condo buyers, meanwhile, are seeing the biggest bargains. The typical condo buyer who paid below list price received an 8.1% discount in 2025, compared with 7.9% for single-family homes and 6.5% for townhouses. Overall, more than two-thirds of condo buyers paid less than asking, as rising HOA fees, insurance costs, and special assessments weigh on demand.
Geography also plays a major role. West Palm Beach, Florida, led the nation among large metros, with a typical discount of 10.9% for homes sold below list price. Detroit, Fort Lauderdale, Pittsburgh, and Miami followed close behind. Floridas heavy homebuilding activity second only to Texas has given buyers ample choice, while rising insurance costs and climate risks have pushed sellers to offer concessions.
Smallest discounts
At the other end of the spectrum, Seattle posted the smallest typical discount at 5.7%, followed by Washington, D.C., Minneapolis, Las Vegas, and Virginia Beach.
Only four major metros still saw typical homes sell above asking price: San Francisco, Newark, San Jose, and Oakland. In San Francisco, buyers paid a median premium of 3.8%, driven in part by renewed demand tied to the AI boom and return-to-office trends. Even there, however, premiums have narrowed as overall market pressure eases.
Taken together, the data underscore how dramatically the balance of power has shifted giving todays buyers leverage that would have been almost unthinkable just a few years ago.
of ConsumerAffairs
