Homebuyers are finally catching a break as sellers slash prices to record levels, signaling a dramatic shift in the housing market after years of inflation-driven affordability crisis.
Quick Take
- Typical U.S. listings now feature $25,000 in cumulative price cuts—matching record discounts ever recorded.
- Over one-quarter of all U.S. listings (26.9%) now include price reductions as sellers adjust expectations.
- California markets are leading the way, with San Jose sellers cutting median prices by $70,900.
- Patient buyers are entering the most active housing market in three years with genuine negotiating power.
- Affordable markets are showing resilience with smaller discounts, indicating steady regional demand.
Market Correction Delivers Relief After Years of Inflation
After enduring years of skyrocketing home prices fueled by government spending and monetary mismanagement, American homebuyers are finally experiencing meaningful relief.
A November 2025 Zillow report reveals that the typical listing nationwide now carries $25,000 in cumulative price cuts—matching the largest discounts the company has ever recorded. This represents a fundamental market correction as sellers adjust their expectations downward and acknowledge the reality of buyer constraints.
The shift reflects a broader recognition among homeowners that their inflated valuations have priced out everyday Americans. Zillow senior economist Kara Ng noted that homeowners, having benefited from years of appreciation, now possess the flexibility to reduce prices while maintaining profits.
This dynamic is creating genuine opportunities for working families who have been locked out of homeownership by years of progressive fiscal policies that prioritized spending over sound economic management.
Study shows homebuyers receiving record discounts due to sellers’ price cuts https://t.co/HYyWiVL0s2 pic.twitter.com/goEeWjG3AD
— New York Post (@nypost) November 28, 2025
California’s Expensive Markets Lead Price Reductions
The most dramatic price cuts are occurring in America’s most expensive housing markets, predominantly in California—a state that has suffered under years of progressive governance, excessive regulation, and policies that have driven up costs across the board.
San Jose leads all markets with a median cumulative discount of $70,900, followed by Los Angeles ($61,000), San Francisco ($59,001), and San Diego ($50,000). New York City also saw substantial median cuts of $50,000.
These extraordinary discounts in high-cost markets underscore how disconnected prices had become from economic reality. For years, left-leaning policies promoting unlimited development restrictions, environmental overreach, and business-hostile regulations contributed to artificial scarcity and inflated valuations. Now, as the market corrects, buyers in these regions are gaining leverage they haven’t experienced in decades.
Sellers Adjusting More Frequently as Market Rebalances
Beyond the magnitude of price cuts, the frequency of adjustments signals a genuine market rebalancing. While individual price reductions remain modest at around $10,000, sellers are now cutting prices more frequently and accepting longer listing periods.
Approximately 26.9% of all U.S. listings now include price reductions, indicating widespread recognition that the era of easy appreciation has ended and realistic pricing is necessary to move inventory.
Zillow economist Kara Ng emphasized that these discounts are aligning listings with buyer budgets while fueling the most active housing market in three years.
This represents a healthy correction, as supply and demand find equilibrium—a far cry from the artificial scarcity and speculation that characterized recent years under policies that discouraged housing development and rewarded investor speculation over homeownership.
Regional Variations Reflect Market Strength Disparities
Not all markets are experiencing equal price pressure. Oklahoma City, Louisville, St. Louis, Indianapolis, and Detroit show the smallest cumulative median discounts, ranging from $15,000 to $17,100.
These markets maintain higher sales velocity and fresher inventory, indicating steady buyer demand without the need for aggressive price reductions. This disparity highlights how affordable, business-friendly regions with sound governance continue to attract buyers and maintain market stability.
Pittsburgh offers the largest relative discount among major markets, at 9% of the typical home value, or a $20,000 markdown. New Orleans similarly shows 9% relative discounts, while Austin (8.4%), Houston (8.2%), and San Antonio (7.9%) follow.
These patterns reveal that markets with lower baseline prices can offer percentage-based discounts that provide exceptional value for budget-conscious buyers seeking stable communities with a reasonable cost of living.
Patient Buyers Reaping Rewards in Rebalancing Market
The current environment rewards patience and disciplined buying decisions. After years when buyers faced bidding wars, waived inspections, and impossible affordability metrics, the market dynamics have fundamentally shifted.
Homebuyers who waited out the inflation-driven bubble are now positioned to negotiate meaningfully, access properties previously beyond reach, and build equity in a more rational market. This represents genuine economic justice for working Americans who were priced out by years of reckless fiscal policy.
The housing market correction underscores a critical reality: when government policies prioritize sound money, reasonable regulation, and market fundamentals over social engineering and unlimited spending, ordinary Americans benefit.
This shift from artificial scarcity and speculation to genuine market equilibrium demonstrates the power of economic correction and offers hope that the excesses of recent years are finally being addressed.
