During the “Black Friday” period, the only ones offering significant discounts are not just retailers. A report released by the online housing platform Zillow on November 24 revealed that the average cumulative price reduction for listed homes in the United States in October reached up to $25,000, setting a historical record.
While the usual price reductions are closer to $10,000, multiple price cuts are becoming more common as homes remain on the market for longer periods. Many sellers are becoming more willing to compromise to ensure timely sales while still making a profit.
“In the past few years, many homeowners have seen their home values soar, allowing them to make one or two price cuts while still exiting profitably,” said Zillow Senior Economist Kara Ng in the report. “These price reductions have allowed more listing prices to align with buyers’ budgets, driving the most active fall housing market in nearly three years.”
The report noted that some of the highest median price discounts are seen in some of the most expensive areas in the United States. In California’s four major metropolitan areas – San Jose, Los Angeles, San Francisco, and San Diego – buyers can save $50,000 to $70,000 or even more on the listing price. In New York, some homes have seen price reductions as high as $50,000.
Moreover, the largest discounts based on home value have appeared in Pittsburgh, New Orleans, and Austin, Texas, with reductions of up to $20,000. In more affordable housing markets like St. Louis, Missouri, Indianapolis, and Louisville, Kentucky, the highest discounts are around $15,000.
The report also highlighted that in Oklahoma City, Oklahoma, the sale speed of local homes is faster than the national average, and sellers do not necessarily need to attract buyers through price cuts.
In its “2025 Consumer Housing Trends Report,” Zillow pointed out that 43% of homebuyers reside in the southern United States, 23% in the Midwest, 21% in the West, and only 13% in the Northeast. On the other hand, the South has the highest number of housing listings, while the Northeast has the fewest.
The report also found that homebuyers have higher household incomes than the average American household: $97,600 for the former and $74,600 for the latter. The typical homebuyer also has a higher level of education, with 49% holding a four-year degree, compared to 35% of the total adult population in the United States.
Most buyers (61%) purchase homes with at least one co-owner, with slightly over half of buyers purchasing jointly with a partner or spouse. Purchasing with relatives or friends is less common.
The National Association of Realtors (NAR) recently reported a 1.2% increase in existing home sales in October, reaching 4.1 million units; the national median home price is $415,200. The median days on the market for homes rose from 33 days in September to 34 days in October, compared to 29 days in October 2024. Only 2% of sales were classified as “distressed properties,” including foreclosures and short sales.
NAR Chief Economist Lawrence Yun stated in the report, “Rental growth is slowing, which will lower inflation and prompt the Federal Reserve to continue to cut interest rates and ease quantitative tightening. This will help more buyers enter the market as Federal funds indirectly affect mortgage rates.”
According to Freddie Mac data, as of November 20, the 30-year fixed mortgage rate is 6.26%, while the 15-year fixed mortgage rate is 5.54%.