Homebuyers in 2025 secured an average discount of 7.9% below the list price, marking the largest discount since 2012, according to a new report from Redfin, a technology-driven real estate company and part of Rocket Companies.
The analysis, based on annual Multiple Listing Service (MLS) data comparing original list prices with final sale prices, indicates that the typical homebuyer who paid less than the list price received a $31,592 discount. This figure is derived from applying the 7.9% average discount to the 2025 median original list price of $399,900. Across all homebuyers, including those who paid at or above list price, the average discount was $15,196, or 3.8%. Nearly two-thirds (62.2%) of all homebuyers in 2025 paid less than the list price, the highest share since 2019, while 22.8% paid more than the list price, the lowest share since 2019. The remaining 15.6% paid the exact list price.
This trend reflects the strongest buyer’s market in recent history, characterized by a 47% surplus of home sellers compared to buyers, which enhances buyer options and negotiating power. Buyers have reduced their activity due to high mortgage rates and elevated home prices. Consequently, some sellers are adjusting to slower demand by cutting prices or delisting properties. Asad Khan, Redfin Senior Economist, advised that homebuyers in 2026 should consider properties slightly above their budget, anticipating potential concessions such as price reductions, closing cost assistance, or repair funds. Khan noted that this represents a shift from the pandemic-era market, where fierce bidding wars often resulted in sales above asking prices.
The increasing prevalence of discounts is partly attributed to the complexity of pricing homes in a rapidly shifting market, with dynamics varying significantly by location. While some areas maintain strong housing demand, many others are experiencing softening conditions. The data shows a year-over-year change, with the average discount for homes sold below original list price rising from 7.5% in 2024 to 7.9% in 2025. Similarly, the average discount across all homes sold increased from 2.9% to 3.8%. The share of homes sold below list price grew from 57.5% to 62.2%, while the share sold above list price decreased from 26.5% to 22.8%. The median original list price increased from $390,000 in 2024 to $399,900 in 2025.
Approximately one-quarter (26.1%) of buyers who secured a discount in 2025 received 10% or more off the list price, marking the highest share since 2012. Another 27.8% achieved a discount between 5% and 10%, the highest since 2013. The remaining 46.1% obtained a discount between 0% and 5%, the lowest share since 2012. Connie Durnal, a Redfin Premier real estate agent in Dallas, highlighted differing seller expectations, citing cases where some sellers struggle to align their desired price with current market valuations. Ben Ambroch, a Redfin Premier real estate agent in Milwaukee, noted that many sellers, having secured low mortgage rates during the pandemic, are reluctant to sell unless the proceeds sufficiently cover their next home’s monthly payments.
Condo buyers obtained the largest discounts among property types in 2025. The typical condo buyer who paid below list price received an 8.1% discount, compared to 7.9% for single-family homes and 6.5% for townhouses. This marks the first time since 2014 that condos sold at a larger discount than single-family homes, attributed to factors such as soaring Homeowners Association (HOA) fees, insurance costs, and special assessments. Across all condo buyers, the average discount was 4.8%, higher than single-family homes (3.7%) and townhouses (3%). Overall, 68.1% of condo buyers paid less than the list price, compared to 61.7% for single-family homes and 60.4% for townhouses.
Among the 50 most populous U.
S. metropolitan areas, West Palm Beach, Florida, recorded the largest typical discount for buyers paying below list price, at 10.9%. It was followed by Detroit (10.3%), Fort Lauderdale, Florida (10.3%), Pittsburgh (9.9%), and Miami (9.8%). Florida’s substantial new home construction, second only to Texas, contributes to increased buyer negotiating power. The state also faces challenges from natural disasters, rising insurance premiums, and escalating condo HOA fees, prompting sellers to offer concessions. Conversely, Seattle saw the smallest typical discount at 5.7%, followed by Washington, D.
C. (5.8%), Minneapolis (5.8%), Las Vegas (5.8%), and Virginia Beach, Virginia (5.9%).
Only four metros reported typical homebuyers paying above the asking price in 2025. San Francisco led with a 3.8% premium, the highest in the nation. Other metros included Newark, New Jersey (3.1%), San Jose, California (2.3%), and Oakland, California (1.3%). The housing market in the Bay Area has experienced a recent surge, driven by growth in the artificial intelligence sector and increased office returns. While Bay Area sellers are known for strategically underpricing homes to stimulate bidding wars, this premium has been observed to be shrinking.
