HOUSTON – (By Dale King, Realty News Report) – Statistics tallied from all of last year’s residential sales in the U.S. confirm that 2025 – a period fraught with high mortgage rates and pricey home acquisition costs — was not a banner year for the real estate market.
But house hunters who chose to take the leap and acquire a new home got something of an unanticipated bonus – a healthy reduction on the price, says a new report from Seattle-based real estate brokerage Redfin.
Buyers who managed to secure residences at sums below the list price got the best bargain of all — a 7.9% discount on the asking price — the largest percentage seen since 2012.
Actually, nearly everyone who successfully bought a home last year had bucks shaved off the price, said Redfin. The brokerage said all homebuyers — not just those who paid less than the list price – saved money. The average discount for them was $15,196 — or 3.8%.
In dollar terms, a typical homebuyer who paid less than the list price last year got a $31,592 markdown — an amount determined by applying the 7.9% average discount to last year’s median original list price of $399,900.
Nearly two-thirds (62.2%) of all homebuyers paid less than the list price — the highest share since 2019. By comparison, 22.8% paid more than the list price — the lowest share since 2019. Fewer than one in six home buyers (15.6%) paid the exact asking price — a share that’s remained fairly steady over the years.
Look for price concessions
“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.”
Redfin said discounts have become increasingly common, partly because homes are getting tougher to price, with market dynamics shifting rapidly and varying widely from place to place, Khan said.
Homebuyers are more likely to get discounts now than in recent years because it’s the strongest buyer’s market in recent history. Redfin stats report a record 47% more home sellers than buyers are trolling the market, giving potential purchasers more options and extra bargaining clout.
Buyers have retreated due to high mortgage rates and home prices, and some sellers haven’t adjusted to the fact that demand is much slower than it was during the pandemic homebuying frenzy. Consequently, many sellers are cutting prices, and some are delisting in hopes of selling at a higher price down the road.
Discounts of 10% or more at 13-year high
Roughly a quarter (26.1%) of homebuyers who paid below the list price in 2025 got a discount of 10% or more—the highest share since 2012. A similar portion (27.8%) scored a discount of 5 to 10%, the highest share since 2013. Nearly half (46.1%) got a discount of 0 to 5%, the lowest share since 2012.
“Some sellers are recognizing the market has changed and others are not,” said Connie Durnal, a Redfin Premier real estate 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 a 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.”
“Many sellers have a certain price threshold they want to clear before they sell,” said Ben Ambroch, a Redfin Premier agent in Milwaukee. “A lot of sellers scored 2 to 3% mortgage rates during the pandemic and are only willing to sell and give up that rate if they can make enough money to cover the monthly payment on their next home.”
Houston in the middle
Redfin said home buyers in West Palm Beach got the biggest price cut among the 50 most populous metros in the U.S. for purchasing below list price – 10.9%. Seattle purchasers got the smallest price break – 5.7%.
Houston ranked just above the middle. Redfin’s study says local folks who acquired a house below list (median price of $354,900) got a 7.1% reduction – and 78% of Space City purchasers took that route.
Houstonians got another benefit in December – more homes to choose from, said the Houston Association of Realtors. In December 2025, 52,727 homes were on the “for sale” list in Houston. That’s a 16.5% increase over the 45,257 listings in December 202
Condo buyers get biggest reductions
The typical condominium buyer who paid below the list price in 2025 got an 8.1% discount compared with the 7.9% discount for single-family-home buyers and a 6.5% discount for townhouse purchasers.
Redfin said 2025 was the first year since 2014 when condos sold at a bigger discount than single-family homes. Condo demand has dropped because HOA fees and insurance costs have been soaring and some homeowner associations are banging owners with hefty special assessments.
Overall, 68.1% of condo buyers last year paid less than the list price, compared with 61.7% of single-family-home buyers and 60.4% of townhouse purchasers.
Feb. 10, 2026 Realty News Report Copyright 2026
Photo by CALpix, copyright 2026
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