Buyers Gain the Upper Hand: Where Homes Are Selling Below Asking Price in 2025
For much of the past few years, Canadian and U.S. buyers alike have faced a seller-dominated market, with homes often selling above or near their asking price. But summer 2025 is painting a different picture. Across several key regions particularly in the South and the West homebuyers are finding more leverage, with a growing number of properties selling below their listed prices.
Rising inventories, slowing buyer demand, and persistently high mortgage rates are shifting the balance of power toward buyers. Sellers are increasingly offering price cuts to move properties that might otherwise linger on the market.
Many sellers are entering the market with optimistic price tags that exceed what buyers are willing to pay, and when homes don’t sell quickly, adjustments are inevitable, says Joel Berner, Senior Economist at Realtor.com.
Where Buyers Are Seeing Discounts
Realtor.com’s latest trend report highlights the metros with the highest share of listings experiencing price reductions. Leading the pack is Denver, where roughly one in three homes listed in June 2025 came with a price cut. The median listing price in the Mile High City was $609,950, down 3.6% from a year ago, with homes sitting on the market for an average of 45 days.
Denver’s strong inventory rebound up more than 88% from pre-pandemic levels has outpaced demand, leaving many homes unsold. Sellers are responding by lowering prices to entice buyers in a market that has slowed compared with the frenzied pace of recent years.
Next on the list is Phoenix, where the median home price fell 3% year-over-year to $520,000. About 33% of listings were reduced last month, marking the second-highest share among major U.S. metros. The Valley of the Sun also led the nation in de-listings in May, as some sellers opted to temporarily withdraw their homes from the market rather than compromise on price.
Austin, Texas, follows closely, with price cuts affecting 32.3% of listings in June. Inventory in the city has jumped nearly 70% compared to 2019 levels, while buyer demand has cooled, creating an environment where sellers have little choice but to negotiate.
Rounding out the top five are Tampa and Dallas, each with more than 30% of homes seeing reductions. Buyers in these markets have room to negotiate, particularly if they can bypass high mortgage rates with all-cash offers.
Other Hotspots for Bargain Hunters
The remaining top 10 metros include Colorado Springs, Jacksonville, Portland, Salt Lake City, and Charleston. These areas are all experiencing a similar dynamic: supply growth outstripping demand, prompting sellers to consider discounts to close deals.
| Metro | Share of Listings with Price Cuts | Median Listing Price | YoY Price Change | Median Days on Market |
|---|---|---|---|---|
| Denver, CO | 33.7% | $609,950 | -3.6% | 45 |
| Phoenix, AZ | 33.2% | $520,000 | -3% | 65 |
| Austin, TX | 32.3% | $524,950 | -4.5% | 58 |
| Tampa, FL | 31.2% | $419,000 | -1.4% | 48 |
| Dallas, TX | 30.6% | $440,000 | -2.3% | 50 |
| Colorado Springs, CO | 30.2% | $515,000 | -1.5% | 43 |
| Jacksonville, FL | 30.1% | $408,995 | -2.6% | 67 |
| Portland, OR | 29.6% | $615,000 | -1.6% | 49 |
| Salt Lake City, UT | 28.8% | $595,000 | -1.2% | 48 |
| Charleston, SC | 28.5% | $535,000 | +1.1% | 50 |
What This Means for Buyers
For homebuyers, this trend represents an opportunity to negotiate, especially in markets where inventory is high, and homes linger longer on the market. Buyers willing to move quickly and offer cash or a strong financing package may find favorable deals.
Berner adds, “If mortgage rates ease in the coming months, we expect demand to pick up, which could reduce the frequency of price cuts. For now, however, buyers have more negotiating power than they’ve had in years.”
Why Price Cuts Are Increasing
Several factors are fueling these reductions:
- Elevated Inventory Levels: Many metros have recovered from the tight inventory of the pandemic years, leaving more homes for sale than buyers can absorb.
- Slower Buyer Activity: High mortgage rates have cooled demand, particularly for first-time buyers.
- Economic Uncertainty: Inflationary pressures and concerns over job stability make buyers cautious, encouraging sellers to drop prices to attract interest.
- Life-Driven Sales: Some sellers cannot wait for the market to turn due to relocation or personal circumstances, forcing them to accept lower offers.
Takeaways for Homebuyers
- Homes are staying on the market longer, giving buyers more leverage.
- Price reductions are most prevalent in the South and Western U.S., but select cities in the Northeast and Mountain regions also offer opportunities.
- Cash offers or competitive financing increase the likelihood of securing a favorable deal.
- Tracking metro-level inventory and median days on market can help buyers identify the best timing for offers.
In 2025, the U.S. housing market is tilting back toward buyers after years of seller dominance. With the right strategy and patience, prospective homeowners can take advantage of these market conditions to secure homes at below-asking prices sometimes significantly below. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
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