20% of October Home Listings Saw Price Reductions
Min 1: Inventory Rose 14% Year-Over-Year in West and South
Inventory rose in every region in November led by West and South both up about 14% year-over-year while Midwest and Northeast saw smaller gains still having tighter supply according to December tracking. National median list price in November about $415,000, down 0.4% from last year and 2.2% from October with price per square foot slipping 1% year-over-year. Home values declining in 11 of 20 major metros tracked by Case-Shiller, all concentrated in South and West where affordability challenges and higher inventory cooled demand. Greater Washington DC region saw record-breaking 60% year-over-year increase in inventory with number of homes on market up at least 40% in all five metropolitan divisions. Sharpest rise seen in Frederick-Gaithersburg-Bethesda, Maryland metro division on northern edge where number of unsold homes up 68% since November 2024. Jump led to home listings lingering around longer with 36% rise in median time on market.
Min 2: Median Days on Market Hit 63 Days Nationally
Right now taking about 63 days to sell home according to December market data. Homes simply not selling in first week like some may think. Market shifting from pandemic environment when properties moved in days or hours to more normalized timeline. Median time on market for properties increased to 36 days in November NAR data, up from 34 days last month and 32 days November 2024. Not only is metric returning back to where it was prior to pandemic but also starting to level off. While national DOM figures increased from 56 to 63 days over measured period, sales in some markets maintained accelerated pace creating geographic divergence. Slower sales velocity gives buyers time for thorough due diligence. During pandemic seller's market, homes received multiple offers within days requiring waived contingencies and above-asking bids. Now homes sit 42 to 48 days on market in many regions allowing buyers conducting inspections, negotiating repairs, including financing contingencies.
Min 3: Sellers Adjusting Expectations After Extended Market Time
Sort of plateau on housing inventory in last few months means market normalizing bringing more people into market. What happens when inventory increases and homes take longer selling? Sellers who overprice based on 2022 comparables now face reality of current demand. Properties must be priced correctly for market conditions. Realtors confirm shift from chaotic to status quo creates healthier market dynamics. More sellers getting into market but they need pricing at levels buyers can afford suggesting negotiation replaces bidding wars. Homes that sat months finally transact at reduced prices acceptable to both parties. Daryl Fairweather, Redfin Chief Economist, said prices keep climbing but with lower mortgage rates and more inventory, buyers have upper hand in negotiations. Uneasy economy and political tensions making everyone cautious though local housing markets vary widely. Buyers serious about making offers should consult local agent and be confident in finances and future income.
Min 4: First-Time Buyers Can Negotiate Concessions
Zillow published affordability for homebuyers reached three-year high as lower rates and inventory create leverage. First-time homebuyers made up 30% of November sales, unchanged from year ago but historically they comprise about 40% indicating room for growth. Recent Realtor.com survey showed renters feel optimistic about becoming homeowners right now. Probably one of areas most lacking is education—where do you start when interested in buying and what does process look like. Great start would be finding homeownership classes or workshops available in area because many local brokerages want to be voice for homeownership. Younger buyers making progress with homeownership among those under 35 rising to 37.5% in third quarter 2025 according to Census data. This age group particularly sensitive to mortgage rates and inventory of entry-level homes. Most people think it takes 20% down which couldn't be further from truth—FHA requires just 3.5% down.
Min 5: Target Price-Reduced Listings for 5% to 10% Discounts
The 20% of listings posting price reductions creates systematic opportunity for buyers targeting motivated sellers. An investor who monitors MLS for price reductions in target market identifies 100 reduced listings monthly. Properties reduced once typically signal seller flexibility—those reduced twice or more indicate serious motivation. Focus on listings exceeding 60 days on market combined with price reductions as these sellers face highest carrying costs and motivation. Offer 5% to 10% below current asking price on twice-reduced listings sitting 90-plus days. On $300,000 listing reduced from $330,000 original ask (9% reduction already taken by seller), offer $270,000 represents additional 10% discount. Seller who's carried property 90 days with two reductions already demonstrates willingness accepting lower price to close transaction. Secure 10 accepted contracts at average $280,000 versus $310,000 market price capturing $30,000 per property through negotiation. Either wholesale contracts for $10,000 assignments or renovate and retail for $330,000 capturing $50,000 per flip. 20% price reduction rate provides large enough pool ensuring consistent deal flow.
The Takeaway
20% of October home listings saw price reductions as market normalizing with inventory plateau and days on market returning to pre-pandemic levels, with homes taking 63 days to sell versus pandemic-era week giving buyers upper hand in negotiations for first time in years. Inventory rose 14% year-over-year in West and South led regions while Midwest and Northeast saw smaller gains, with national median list price at $415,000 down 0.4% from last year and 2.2% from October as home values declined in 11 of 20 Case-Shiller metros concentrated in South and West. Median days on market hit 63 days nationally representing shift from pandemic environment when properties moved within hours as market normalizing gives buyers time for due diligence, conducting inspections, negotiating repairs, including financing contingencies replacing waived contingencies and above-asking bids. Sellers adjusting expectations after extended market time as properties must be priced correctly for current conditions with realtors confirming negotiation replaces bidding wars, while Redfin Chief Economist says buyers have upper hand though uneasy economy makes everyone cautious. First-time buyers can negotiate concessions as affordability reached three-year high with homeownership under 35 rising to 37.5% while most people mistakenly think 20% down required when FHA needs just 3.5% as education remains key barrier. Investors monitoring MLS for price reductions identify 100 reduced listings monthly targeting properties exceeding 60 days with two reductions, offering 5% to 10% below asking on $300,000 listing reduced from $330,000 original—securing 10 accepted contracts at $280,000 versus $310,000 market capturing $30,000 per property through negotiation for $10,000 wholesale assignments or $50,000 per flip after renovation.
