US Homebuyers Enjoying Largest Autumn Discounts Since 2019
Potential homebuyers across the United States are experiencing the largest autumn discounts in years, according to a recent report. Simultaneously, the buyer’s market in September has doubled in size compared to the same period last year. However, industry experts do not see this as a sign of a “fire sale” in the real estate market.
According to statistics released by the real estate brokerage firm Redfin on October 20, the average selling price of single-family homes is down by 1.4% below listing prices, marking the largest drop for September in the past six years.
Additionally, homes are staying on the market for a longer period of time – averaging 50 days, which is the slowest autumn sales pace since September 2016. Sellers are also reconsidering their selling options, with the active listings across the nation in September decreasing by around 1% compared to the same period.
Redfin points out that only 25.3% of homes are being sold above the listing price in the current market, lower than the 28.5% during the same period in 2024.
The report states, “High costs and economic uncertainty have limited the number of homebuyers, leading to a sluggish housing market performance. Moreover, housing inventory has slightly increased, giving buyers more time and choices in the market.”
The report highlights that there are 37.7% more home sellers than potential buyers currently, providing buyers with more negotiation leverage.
In terms of regions, Dallas, Houston, and Austin in Texas saw the largest median price declines for homes in September, with Dallas leading at a 2.7% decrease. In Dallas, homes sell on average at 97% of the listing price; Fort Worth at 97.7%; Houston at 96%; and Austin at 96.7%.
In the southern part of Florida, the two major metropolitan areas reported the lowest ratio of homes sold at or above listing price – homes in Fort Lauderdale selling at 95.4% of the listing price and Miami at 95.2%.
Furthermore, a report released by Zillow on October 20 revealed that the buyer’s market in September more than doubled compared to the same period last year, with 15 out of the top 50 major metropolitan areas in the U.S. classified as buyer’s markets, while there were only 6 during the same period in 2024.
The report indicates that leading cities in the buyer’s market include Miami in Florida, New Orleans in Louisiana, Austin in Texas, Jacksonville in Florida, and Indianapolis in Indiana, primarily due to an increase in new home constructions in those areas.
Johnny Mowad, President of the MetroTex Association of Realtors in the Dallas metropolitan area, told Epoch Times that buyers in Dallas are gaining stronger bargaining power.
He stated, “Sellers are more willing now to negotiate beyond the listed price.”
“Sellers are more open to various concessions, such as helping with closing costs, repairs, offering low mortgage rates, and more. With increased supply, there is less urgency among buyers.”
Jonathan Lickstein, President of the Broward, Palm Beach, and St. Lucie Realtors Association, mentioned that the local housing market is gradually returning to a healthy balance.
He said, “Sellers are accepting some creative bargaining, but overall, due to strong demand and limited inventory in Broward, Palm Beach, and St. Lucie counties, home prices remain stable.”
Many sellers are not opting for significant price reductions but are providing concessions like offering lower mortgage rates or assisting with closing costs. Additionally, the multiple listing service provider BeachesMLS has partnered with the transferable mortgage platform RetroRate to allow buyers to assume existing mortgage loans from local sellers at lower rates.
According to data from the National Association of Realtors (NAR), existing home sales in September increased by 1.5% month-on-month and 4.1% year-on-year, reaching a seasonally adjusted annual sales rate of 4.06 million units, marking the highest sales level in seven months.
The report also mentions that the decrease in interest rates boosted activity in the housing market in September.
Lawrence Yun, Chief Economist of NAR, stated, “As expected, the decline in mortgage rates is driving home sales. Furthermore, improvements in housing affordability are also fostering sales growth.”
Based on data from Freddie Mac, as of October 16, the 30-year fixed-rate mortgage was 6.27%, and borrowers opting for a 15-year fixed-rate loan could enjoy a rate of 5.52%.
The housing inventory in September totaled 1.55 million units, increasing by 1.3% from August and 14% compared to the same period last year.
Yun mentioned, “The inventory has now reached its highest level in nearly five years, although it still remains below pre-pandemic levels.”
Mowad cautioned that not all areas are witnessing “fire sale prices,” particularly in suburbs with stronger market performance and homes located in popular areas with superior school districts and good conditions.
He believed that median prices might continue to decline in the fourth quarter.
Mowad expressed, “Price trends will vary by market segment. Prices for homes in high-demand communities and with unique features will remain robust, while less desirable properties could see declines.”
He also noted that first-time homebuyers continue to face challenges.
“Many of them still have to deal with high home prices (relative to income) and high mortgage rates,” he said. “Moreover, the notion that there are ‘deals everywhere’ isn’t entirely accurate.”
Despite recent increases in homebuying discounts in various regions nationwide, NAR data showed that the median sales price for all types of existing homes nationally was $415,200, marking a 2.1% year-on-year increase and signifying the 27th consecutive month of annual price growth.
Lickstein believed that home prices would remain stable through the end of the fourth quarter.
Redfin’s report indicated that on the West Coast, homes in San Francisco and San Jose, California, continued to sell above listing prices in September, with average sale prices ranging 2% to 4% above listing prices.
Last month, other metropolitan areas where homes sold above listing prices included Providence, Rhode Island; Newark, New Jersey; Milwaukee, Wisconsin; and Boston, Massachusetts.
Mowad suggested that first-time homebuyers still have the opportunity to find suitable properties within their budget if they are willing to compromise on factors like home size, condition, and location.