‘Discouraging’: Frustrated Sellers Are Cutting House Prices by Tens of Thousands of Dollars as Buyers Grow More Selective

The typical home seller is asking for 9% more than what the home eventually sells for, Redfin data show.

By Steven Orlowski, CFP, CNPR

The U.S. housing market is sending a clear message to sellers: it’s no longer a seller’s game.

As mortgage rates hover near multi-decade highs and affordability concerns mount, homebuyers are becoming increasingly selective—forcing many sellers to slash asking prices, sometimes by tens of thousands of dollars, just to attract offers. According to new data from Redfin, the average home is selling for 9% less than its original list price, a growing gap that signals serious mismatches between seller expectations and buyer realities.

“It’s discouraging,” said Angela Fuller, a homeowner in Phoenix who recently cut her listing price by $45,000 after weeks with no offers. “We thought the market was still hot, but buyers just aren’t biting like they used to.”

Price Cuts Are Becoming the Norm

Nationwide, about one in five sellers dropped their asking price in March 2025, Redfin reports. In once-booming metros like Austin, Boise, and parts of Florida, price reductions are even more widespread, as high inventory levels and cautious buyers weigh down competition.

“The frenzy of the pandemic-era market is gone,” said Taylor Marr, deputy chief economist at Redfin. “Today’s buyers are not only paying more in interest—they’re also wary of overpaying for homes that may not hold their value.”

For sellers, that wariness translates into longer time on market and more aggressive discounting. Redfin found that the median sale-to-list price ratio is now at 91%, meaning the typical seller is leaving thousands—if not tens of thousands—on the table.

Why Buyers Are Holding Back

While prices have dipped from their 2022 peaks in many markets, they remain historically high. Couple that with a 30-year fixed mortgage rate averaging over 7%, and monthly payments are simply out of reach for many prospective buyers.

“It’s not just about price—it’s about total cost,” said Laura Cheng, a buyer in Seattle who has been house-hunting since January. “Between interest rates, insurance, and taxes, a home that seems affordable on paper just doesn’t work once you run the numbers.”

In addition, buyers are increasingly unwilling to compromise on condition. With rising renovation costs and tighter lending standards, homes that need work or updates are sitting unsold unless sellers adjust pricing accordingly.

A Shifting Power Dynamic

The balance of power has clearly shifted. While sellers once fielded multiple offers in days, many are now negotiating with just one or two cautious buyers—if any.

This environment has prompted real estate agents to advise their clients to price homes closer to market value from the start, rather than “testing the waters” with aspirational listings. Overpricing, agents warn, can lead to longer listing times, more price cuts, and ultimately a lower final sale.

“We’re telling sellers that the market is healthy, but not hot,” said Rebecca Ortiz, a realtor in Denver. “If you price your home based on last year’s headlines, you’re going to be disappointed.”

What This Means for the Market

The growing spread between list and sale prices suggests a market finding its footing in a post-pandemic reality—still active, but far more rational. It also reflects a buyer pool that’s more cautious, more informed, and less willing to overpay.

Still, experts caution that this is not a crash, but a correction.

“Housing fundamentals remain strong,” said Marr. “We’re seeing stabilization—not collapse. But sellers need to reset their expectations if they want to close the deal.”

Bottom Line

In today’s market, wishful pricing doesn’t sell homes—realistic pricing does. For sellers hoping to move their property quickly, the message is clear: price smart, stay flexible, and be ready to negotiate.

Otherwise, that “For Sale” sign might be around longer than expected.