Zillow has found that the nation’s home shoppers this fall are seeing some of the steepest price cuts in years, with the typical listing having received cumulative discounts totaling $25,000 in October.
And with Black Friday kicking off the 2025 holiday season, it may turn out to be the season of savings for prospective buyers on the sidelines waiting to jump into the housing market.
Zillow experts observe that home sellers are recalibrating their expectations on the fly, recognizing that affordability pressures are weighing on today's buyers — and that they can still turn a profit after a price cut. The typical size of an individual price cut has barely budged in recent years, holding near $10,000. But with listings taking longer to move, sellers are increasingly trimming prices more than once as they adjust to a more buyer-friendly market.
"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," said Zillow Senior Economist Kara Ng. "These discounts are bringing more listings in line with buyers' budgets, and helping fuel the most active fall housing market in three years. Patient buyers are reaping the rewards as the market continues to rebalance."
Zillow reveals that the biggest median discounts from initial list price appear in some of the nation's most expensive markets, with San Jose, California leading the pack with an average savings of $70,900, followed by:
- Los Angeles, California with an average discount of $61,000
- San Francisco, California with an average discount of $59,001
- New York, New York with an average discount of $50,000
- San Diego, California, also with an average discount of $50,000
However, in markets where homes cost less to begin with, smaller cuts can represent a bigger relative discount for buyers. In Pittsburgh, for example, a typical markdown of $20,000 equals about 9% of the metro's typical home value — the largest relative discount among major markets. New Orleans homes are also typically discounted by 9% of the metro's typical home value, with buyers in Austin, Texas (8.4%); Houston, Texas (8.2%); and San Antonio, Texas (7.9%) reporting the next-best deals.
At the other end of the spectrum are metros where sellers haven't had to budge much on price, as Oklahoma City, Oklahoma ($15,000); Louisville, Kentucky ($15,000); St. Louis, Missouri ($15,100); Indianapolis, Indiana ($16,000); and Detroit, Michigan ($17,100) recorded the smallest cumulative discounts in October. In all but Oklahoma City, homes are selling faster than the national average, as listings tend to be newer — signs of steady demand and sellers who don't need to discount as deeply to attract a buyer.
