The Shift: Widespread Discounts Emerge in Major U.S. Markets

In June, homes sold for less than their asking price in 38 of the 50 largest U.S. housing markets, according to the latest data from Redfin. The shift marks a stark change from the pandemic-era peak, when more than half of all homes sold above asking. Nationally, only about 25% of homes now sell above their list price, down from roughly 55% in 2022.

The steepest discounts appeared in the South, with Florida and Texas metros dominating the top 10. Miami led with an average sale-to-list discount of nearly 5%, followed by West Palm Beach (4.6%), Houston (3.5%) and Austin (3.2%). Tampa, Dallas, San Antonio, Jacksonville, Pittsburgh and Orlando rounded out the list with gaps between 2.5% and 3.1%. By contrast, some coastal markets—San Francisco, New York and Boston—still saw homes sell slightly above asking on average.

The trend isn’t limited to big cities. Across the country, higher borrowing costs have eroded what buyers can afford, while many sellers have been slow to cut their expectations, Redfin chief economist Daryl Fairweather noted. Buyers feel the pinch of rising mortgage rates immediately, but sellers often take months to accept that the market has shifted.

Behind the Numbers: Why Sellers Are Cutting Prices in So Many Cities

Where the Discounts Are Largest—and Why

Florida and Texas cities stand out not just because affordability has tightened, but because they saw an unusual surge in homebuilding during and after the pandemic. That supply boost gives buyers more choice and weakens sellers’ pricing power. On top of that, climbing insurance premiums and property taxes in those states have raised the total cost of homeownership, shrinking the pool of qualified buyers and forcing sellers to negotiate.

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The Mortgage Rate Overhang

When mortgage rates climbed from historic lows near 3% to above 7%, the maximum price a buyer could afford dropped sharply. Even a half-percentage-point increase can knock tens of thousands of dollars off a household’s budget. Sellers who bought at the 2022 peak may have little room to cut prices without losing money after commissions and other costs, making them more willing to accept a lower offer just to move a property.

A More Balanced—but Not Uniform—Market

While national data signals a buyer’s market, local conditions vary dramatically. In neighborhoods where inventory remains tight and demand is strong, well-priced homes still draw multiple offers and close quickly, according to Bill Kowalczuk, a broker at Coldwell Banker Warburg in New York City. What’s really happening, he said, is a return to a market where pricing strategy matters again, and buyers who understand the local sale-to-list ratio can find genuine savings.

How Home Buyers Can Turn Discounts Into a Better Deal

  • Check the local sale-to-list ratio. Redfin, Zillow and many agent tools show what homes in your area typically sell for compared with their asking price. If the ratio is below 100%, you have room to negotiate.
  • Look at time on market. A home that’s been sitting for several weeks is more likely to accept an offer below asking than a fresh listing that may still attract competition.
  • Target homes that have already cut their price. A seller who has already marked down a property is often more open to further concessions, because they’re motivated to close.
  • Negotiate beyond the sale price. Buyers can ask sellers to cover closing costs, prepaid property taxes or provide repair credits. Cash offers can also strengthen your position—they’re seen as more likely to close without financing hiccups.
  • Don’t assume every seller is desperate. In strong sub-markets and the luxury segment, correctly priced homes still move fast. Know the data for the specific neighborhood you’re targeting.