- Buyers secured the largest price discounts in more than a decade last year.
- Nearly two-thirds of homebuyers paid below the asking price in 2025.
- A record surplus of sellers over buyers has shifted market power.
- Condo buyers and those in Florida metros found the steepest discounts.
- This cooling market is a major reversal from the pandemic buying frenzy.
For years, American homebuyers faced a brutal market defined by bidding wars, waived inspections, and offers far above asking price. That era has decisively ended. New data reveals that 2025 was the year buyers finally regained the upper hand, securing the largest discounts off listing prices in 13 years. This dramatic shift signals a cooling housing market fundamentally reshaped by high borrowing costs and a growing imbalance between eager sellers and hesitant buyers.
According to a Redfin analysis of annual multiple listing service data, the typical purchaser who bought below the list price last year received a 7.9 percent discount. This is the largest average discount since 2012. In practical terms, that meant saving around $31,592 off the 2025 median list price of $399,900. Among all homebuyers, including those who paid at or above asking, the average discount was $15,196, or 3.8 percent.
The statistics paint a clear picture of changing dynamics. Nearly 62 percent of all homebuyers paid less than the asking price in 2025, the highest share since 2019. Conversely, only about 23 percent paid over the list price, the lowest share in the same period. Redfin senior economist Asad Khan attributed this to a growing buyer’s market. "There are a record 47 percent more home sellers than buyers now," Khan noted, "which gives potential homeowners more options and negotiating power."
A reversal from the pandemic frenzy
This environment is very different from what we've seen in the recent past. "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," Khan said in the report. He advised that now, "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."
The report indicates many sellers are struggling to adjust their expectations after watching the peak market. "Some sellers haven’t adjusted to the fact that demand is much slower than it was during the pandemic homebuying frenzy," the report states. This misalignment is leading to price cuts or properties being delisted. Real estate agent Connie Durnal in Dallas observed, "Some sellers are recognizing the market has changed and others are not."
Where the deals are deepest
Discounts varied significantly by location and property type. Condo buyers scored the largest average discount at 8.1 percent, followed by single-family homes at 7.9 percent. Redfin linked softer condo demand to soaring HOA fees and insurance costs, particularly in states like Florida.
Geographically, West Palm Beach, Florida, offered the steepest discounts among major metros, with buyers averaging nearly an 11 percent reduction off the list price. Detroit, Fort Lauderdale, Pittsburgh, and Miami also saw deep cuts. Florida's high construction volume, second only to Texas, provides buyers with more choices. However, the state also grapples with factors that may be pushing sellers to negotiate, including intensifying natural disasters and soaring insurance premiums.
On the other end of the spectrum, Seattle buyers saw the smallest average discount among top metros at 5.7 percent. Only four metropolitan areas saw the typical buyer pay a premium over asking: San Francisco, Newark, San Jose, and Oakland.
For the average American, this shift is a double-edged sword. Buyers now have breathing room to negotiate, which is a welcome change after years of being pressured to overpay. Yet the underlying reasons for the cooling market, high mortgage rates and persistent high prices, still keep homeownership out of reach for many. Sellers, especially those who bought at the market's peak, are facing the painful reality that their perceived equity may not materialize without significant concessions.
This new era of discounts is more than a minor market adjustment; it is a necessary correction from the unsustainable frenzy of recent years. It reflects an economy where the soaring costs of homeownership, from debt to insurance, are finally colliding with the limits of what wages can support. While price cuts may re-energize transaction volume, they also expose the fragile foundation of a market built on rapidly escalating values. The great American dream of homeownership is entering a more pragmatic, and perhaps more precarious, chapter.
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