Homebuyers in 2025 secured the deepest discounts seen since 2012, with the typical below-list deal shaving nearly 8% off the asking price, according to new data from Redfin.

Driven by a surplus of inventory and softening demand, 62.2% of all homebuyers paid less than the list price last year. This shift marks a significant departure from the pandemic-era frenzy, empowering buyers to negotiate price cuts and other seller concessions in what Redfin describes as “the strongest buyer’s market in recent history.”

The typical discount for homes sold under the list price in 2025 was 7.9%, translating to a savings of approximately $31,592 based on a median list price of $399,900.

The scope of these price reductions was notable. According to Redfin’s analysis of multiple listing service data, 26.1% of buyers who secured a deal below the asking price received a discount of 10% or more — the highest share since 2012. Conversely, the portion of buyers paying a premium over the list price fell to 22.8%, the lowest level since 2019.

The resurgence of discounts is largely attributable to a supply-demand imbalance; Redfin reported that there were 47% more home sellers than buyers in the market last year.

However, psychology also played a part. Many sellers, particularly those who bought during the peak of the pandemic, have anchored their price expectations to comparable sales from the frenzy years, which are now in the rearview mirror.

“Some sellers are recognizing the market has changed and others are not,” said Connie Durnal, a Redfin Premier real estate agent based in Dallas, in the report. She noted instances of sellers attempting to list homes significantly above current comparable home values to recoup their pandemic-era purchase costs.

This disconnect has forced many sellers to cut prices or offer concessions to move properties.

“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,” said Redfin Senior Economist Asad Khan in the report.

The tendency toward discounts was most pronounced in the condo market. For the first time since 2014, condominiums sold at steeper discounts (8.1%) than single-family homes (7.9%). Redfin attributes this trend to soaring homeowner association fees and rising insurance costs, which have dampened demand for condo units.