With higher inventory and lower demand, market conditions are working in buyers’ favor.
Want to buy a home but scared about overpaying? I have good news: in 2025, buyers are finally calling the shots. If you’ve been wondering whether you’ll have any leverage in today’s market, the answer is a resounding yes.
Let me tell you about a first-time buyer I recently worked with. He found a home listed at $517,000 that had been sitting on the market for months. Instead of jumping in at the list price, we negotiated a $10,000 discount. But that’s not all. The seller also covered the closing costs and threw in appliances to sweeten the deal. This story isn’t unique. Similar scenarios are playing out from coast to coast.
With more sellers lowering prices and offering perks, buyers aren’t just getting good deals—they’re dominating negotiations. Here’s why.
1. Largest discounts in two years. If you’re looking for hard data, here it is: According to Redfin, the typical U.S. home now sells for about 1.8% below the list price, the biggest average discount in almost two years. In January 2025, the average closing time for a home reached 56 days, which is the longest January on record since 2020. That’s not a fluke; it’s a clear sign that the market is shifting in favor of buyers.
2. Inventory surge fuels buyer leverage. Another key factor is inventory. New listings jumped between 4.7% and 8.4% year-over-year in early 2025, sending the months-of-supply up to five ** ** months, which is the highest level since before the pandemic. When there’s more supply and less demand, buyers can afford to be pickier and negotiate harder.
Many sellers now are people who locked in super-low mortgage rates during the pandemic and are finally deciding to move, which adds even more inventory to the market. Even as demand has cooled, supply continues to grow, making it the perfect storm for buyers looking for a deal.
“Homes are selling below list price for the first time in years.”
3. Sales are slower. Even with more homes available, demand has weakened. Pending sales have fallen by 4% to 6% compared to last year, marking the lowest January levels outside of the pandemic years. Mortgage rates have hovered around 7%, with the January average at 6.96%.
At the same time, home prices are still up 4% year-over-year, with the national median now at about $418,000. All these factors are making buyers more cautious, which means homes are lingering longer on the market. In fact, over 60% of homes now stay listed for more than 60 days, which is up from previous months. This slowdown not only cools competition but gives buyers even more power at the negotiating table.
4. Sellers are offering more concessions. Sellers aren’t just dropping price, they’re offering real value to close deals. In the first quarter of 2025, 44.4% of sales included buyer perks like closing cost credits, repairs, or even interest rate buydowns. That’s up from 39.3% just a year ago.
In today’s market, almost half of all home sales come with extra incentives. Buyers aren’t just getting discounts; they’re also walking away with added value, making this one of the strongest buyer markets in years.
What does this mean for you? If you’re buying now, this is your moment. You have the power to negotiate, avoid bidding wars, and enjoy more perks than we’ve seen in years. If you’re selling, you’ll need to get strategic. Sharp pricing, standout staging, and smart incentives will help you stay competitive.
If you’re ready to take advantage of this unique market, or if you want a custom plan for buying or selling your home, don’t hesitate to reach out by phone or email. I’m here to help you make your next move with confidence.
