December 2, 2025
Rates on the higher side of 6% result in sizable monthly mortgage payments in comparison to 2020.
As America’s housing market continues to struggle, potential homebuyers are lucking out as homeowners are being forced to lower their asking price to stay competitive, The Independent reports.
The decrease in prices shows the market is cooling off from the skyrocketing COVID-19 housing prices, but it’s still not fully out yet—rates on the higher side of 6% result in sizable monthly mortgage payments compared to 2020. As inflation continues to be a factor in Americans’ willingness to open their wallets, data from The Wall Street Journal show that about 20% of active home listings in October had a price cut.
Home prices on the high end can result in a longer wait time for the seller. Data from the National Association of Realtors supported that narrative, highlighting that listings sold after a price cut spend, on average, five times as many days on the market as those priced correctly from the beginning.
Housing experts find the narrative is a plus for both homeowners and buyers, as homebuyers are receiving record-setting discounts as sellers wrestle with their expectations. “Most homeowners have seen their home values soar over the past several years, which gives them the flexibility for a price cut or two while still walking away with a profit,” Zillow Senior Economist Kara Ng said, according to Fox Business.
“These discounts are bringing more listings in line with buyers’ budgets, and helping fuel the most active housing market in three years. Patient buyers are reaping the rewards as the market continues to rebalance.”
Homes priced correctly from day one reportedly sell faster and fetch an estimated 100% of the asking price. Once a house has been on the market for three months, the process of lowering the asking price typically begins.
Despite home prices nationwide still rising despite buyers’ pushback on spending, data from real estate company Redfin shows 2025 as the strongest buyer’s market tracked, highlighting 36.8% more sellers than buyers across state lines. The math adds up to over 528,000 homeowners struggling to find a buyer.
The increase of housing inventory is shown heavily in East Coast states like Maryland, at 34%, Virginia, at 27% and North Carolina, coming in at third place, at 34%. Arizona, Nevada, and South Dakota came in at 27% and 23%, while Washington settled in the middle at 25%. Some of the country’s largest metro areas also saw a spike in inventory thanks to the discount presented to buyers.
Cities in California, like Los Angeles, San Francisco, and San Diego, saw sizable reductions. In LA, some homes were cut by $61,000, while in San Fran, the average was $59,001. Sellers in San Jose saw an average discount of $70,900. In New York City, the median cumulative price cut was $50,000.
RELATED CONTENT: Michigan Governor Signs Law Preventing Landlords From Rejecting Renters Over Source Of Income
