Redfin data show buyers in 2025 paid well below asking prices as market conditions continue to tilt in their favor.
By yourNEWS Media Newsroom
Homebuyers gained significant negotiating power in 2025, securing the largest average discounts on home purchases in more than 13 years, according to a new analysis.
Data from a recent Redfin report show that buyers who purchased homes below the asking price last year received an average discount of 7.9 percent, the steepest reduction since 2012. That equates to roughly $31,600 off the 2025 median list price of $399,900. Across all transactions, including those at or above list price, the typical discount averaged 3.8 percent, or about $15,200.
The analysis found that nearly 62 percent of homebuyers paid less than the asking price in 2025, the highest share since 2019. About 23 percent paid above list price, the lowest level in six years, while just over 15 percent paid exactly what sellers asked, a figure that has remained relatively stable.
Redfin senior economist Asad Khan said the shift reflects a clear reversal from the pandemic-era housing boom, when bidding wars routinely pushed prices well above asking levels. He noted that buyers in 2026 should not automatically rule out homes slightly above their budgets, as sellers are increasingly offering concessions such as price cuts, closing-cost assistance, or repair credits.
The growing prevalence of discounts is tied to a widening imbalance between supply and demand. Khan said there are now about 47 percent more sellers than buyers nationwide, giving purchasers greater leverage and more choices. While demand remains strong in some regions, it is softening quickly in many others, making pricing more difficult and less predictable for sellers.
Regional data showed the largest discounts in parts of Florida. In West Palm Beach, where the December 2025 median home price stood at $470,000, buyers received nearly 11 percent off list prices on average. Fort Lauderdale and Detroit followed with discounts just over 10 percent, while Miami and Pittsburgh buyers saved just under 10 percent. Redfin attributed Florida’s larger discounts in part to high levels of new construction, second only to Texas, which has expanded housing supply and eased competition.
At the other end of the spectrum, Seattle recorded the smallest discounts among major metro areas, averaging 5.7 percent. Minneapolis, Las Vegas, and Virginia Beach also posted buyer discounts below 6 percent. Only four metro areas saw buyers consistently paying above list price. In San Francisco, the average buyer paid nearly 4 percent more than the asking price, with median home values approaching $1.4 million in December 2025. Newark, New Jersey, along with San Jose and Oakland, California, also saw homes sell above list price, though by smaller margins.
The report found that condominium buyers fared even better than those purchasing single-family homes. Condo buyers received an average discount of 8.1 percent, compared with 6.5 percent for townhomes. Rising homeowners association fees and insurance costs, particularly in weather-prone states such as Florida, were cited as factors weighing on condo demand. Overall, more than 68 percent of condo buyers paid less than asking price, compared with about 62 percent of single-family buyers and 60 percent of townhome purchasers.
Redfin concluded that the current negotiating environment is likely to persist into 2026, as some sellers continue to price homes based on outdated expectations from the pandemic boom. As demand slows, many are cutting prices or temporarily pulling listings from the market in hopes of selling later at higher values.
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