Key Takeaways
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• 57% of homes sold in 2025 through October had at least one price cut—up sharply from the 2020–2024 average of 47%
• Overpriced listings sit on the market 5x longer and sell for 3.7% below asking on average
• Buyers now have more leverage to negotiate due to slower sales and elevated mortgage rates
• Delistings are rising in oversupplied markets like South Florida and Texas, as sellers resist deeper cuts
What Happened?
Elevated mortgage rates and economic uncertainty are forcing a reset in the housing market as sellers who price too aggressively face long delays and steep reductions. More than half of homes sold in 2025 have undergone at least one price cut, the highest share in years. Homes priced correctly from the outset sell faster and close near 100% of the asking price, but listings that require reductions often linger for months—eventually selling for more than 5% below list after 90 days and over 12% below list after a year. Buyers, no longer pressured by the pandemic frenzy of 2021–2022, now have more time to negotiate, submit offers under asking, and conduct full inspections.
Why It Matters?
The trend underscores a major shift from a seller’s market to a more balanced—or even buyer-leaning—environment in many regions. Sellers anchored to peak-pandemic prices are discovering that buyers are highly rate-sensitive and unwilling to chase inflated valuations. The longer a home sits, the more skeptical buyers become, further widening the gap between list and sale prices. The rise in price reductions, combined with flat inflation-adjusted retail sales and cooling sentiment, signals a broader slowdown in discretionary spending and household confidence. Real estate investors and agents are adapting to a market where accurate pricing strategy is critical and overpriced assets quickly become stale inventory.
What’s Next?
Markets with elevated supply—particularly parts of Texas and Southern Florida—are expected to see more delistings as sellers refuse to cut prices and wait for a perceived better environment. Areas with tighter inventory, such as the Midwest and Northeast, should remain more resilient. If mortgage rates remain high, buyers will continue demanding concessions, and homes listed above market value will face sharper corrections. Analysts recommend that sellers benchmark pricing against the last 30 days of comps—not pandemic-era highs. As 2026 approaches, watch for shifts in housing inventory, mortgage-rate trends, and local supply-demand imbalances that will determine whether pricing power shifts back toward sellers or continues favoring buyers.
