Not Paying Full Home Price 2/13/26

Summary

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Episode Overview

Podcast: Your Money Minute
Host: Jessica Ettinger (CNBC)
Episode Title: Not Paying Full Home Price 2/13/26
Date: February 13, 2026

This episode centers on recent trends in the US housing market, focusing on how homebuyers are increasingly securing significant discounts when purchasing homes. Drawing on new Redfin data and expert commentary, the segment explores why discounts are rising, what’s pushing sellers to drop prices, and the broader issue of housing affordability in America.

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Key Discussion Points & Insights

1. Largest Home Discounts in Over a Decade

• Redfin’s Data Highlight:

  • In 2025, US homebuyers received the biggest discounts on home purchases in 13 years.
  • “The typical home buyer got a 7.9% discount off the list price. That’s the largest since 2012.”
    — Jessica Ettinger (00:18)
  • Average buyer saved about $30,000 compared to list prices.

• How Data Was Analyzed:

  • Redfin examined MLS data, comparing initial list prices to the final sale prices.

2. Why Are Sellers Offering Bigger Discounts?

• Market Dynamics:
  • Many homes sat on the market too long, leading sellers to lower the final price.
  • Sellers often made concessions—such as price cuts or addressing issues (like a new roof)—discovered during buyer inspections.
  • “A lot of home sellers ended up lowering that final price either because it was sitting on the market too long with no buyer or because the seller had to make concessions for the buyer, like a discount because the home needed a new roof or something found at inspection.”
    — Jessica Ettinger (00:36)

3. Broader Challenge: Housing Affordability

• Expert Perspective (Kelly Evans):
  • The ideal way to boost affordability is for prices to fall, though current homeowners rarely want this.
  • “Best way to increase housing affordability would be for home prices to fall.”
    — Kelly Evans (00:08)
• Housing Shortage:
  • Glenn Kelman (Redfin CEO) argues the deeper problem is a lack of new housing construction.
  • US housing market is roughly 5 million units short of demand.
  • “The fundamental problem in America is that we’ve stopped building houses. We’re about 5 million units short and we just need more housing.”
    — Glenn Kelman (01:20)

4. Social Attitudes Toward Falling Home Prices

• Contrast With Other Goods:
  • Kelman points out that Americans celebrate falling prices for most products—except homes.
  • “We want gas to be cheaper. We want bread to be cheaper. We want milk to be cheaper. What are housing? That’s the reason Americans feel that this country is so unaffordable. It’s housing that they can’t afford… we treat it as a calamity.”
    — Glenn Kelman (01:10)

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Notable Quotes & Memorable Moments

• Kelly Evans (00:08):
  “Best way to increase housing affordability would be for home prices to fall.”
• Jessica Ettinger (00:18):
  “The typical home buyer got a 7.9% discount off the list price. That’s the largest since 2012. The typical buyer saved about $30,000.”
• Jessica Ettinger (00:36):
  “A lot of home sellers ended up lowering that final price either because it was sitting on the market too long with no buyer or because the seller had to make concessions for the buyer, like a discount because the home needed a new roof or something found at inspection.”
• Glenn Kelman (01:07):
  “We want gas to be cheaper. We want bread to be cheaper. We want milk to be cheaper. What are housing? ... we treat it as a calamity.”
• Glenn Kelman (01:20):
  “The fundamental problem in America is that we’ve stopped building houses. We’re about 5 million units short and we just need more housing.”

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Timestamps for Important Segments

• 00:08: Kelly Evans on falling home prices and affordability
• 00:18: Redfin data: 7.9% discount, $30,000 average savings
• 00:36: Why sellers are lowering prices (market stagnation, buyer concessions)
• 01:07: Glenn Kelman on Americans’ perceptions of home prices vs. other products
• 01:20: Kelman’s call for more home construction to address supply shortage

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Closing Remark

For more in-depth coverage and related topics, listeners are encouraged to visit cnbc.com/real-estate.
(Promo and ad content in the transcript have been omitted.)

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Transcript

[Jessica Ettinger]

With a CNBC you Money minute. I'm Jessica Ettinger. There's been a lot of talk about housing affordability in the US the.

[Kelly Evans]

Best way to increase housing affordability would be for home prices to fall.

[Jessica Ettinger]

And no, I understand no one in a house wants that. That's CNBC's Kelly Evans. But new Redfin data show home buyers actually got the biggest discounts in 13 years buying homes in the US last year, Redfin says the typical home buyer got a 7.9% discount off the list price. That's the largest since 2012. The typical buyer saved about $30,000. Redfin analyzed MLS data. They compared original list prices with final sale prices. A lot of home sellers ended up lowering that final price either because it was sitting on the market too long with no buyer or because the seller had to make concessions for the buyer, like a discount because the home needed a new roof or something found at inspection. Redfin CEO Glenn Kelman told CNBC in January that home prices would come down overall if the US had the right number of homes for the people who want them.

[Glenn Kelman]

You know, we're one dimensional about most products. We want gas to be cheaper. We want bread to be cheaper. We want milk to be cheaper. What are housing? That's the reason Americans feel that this country is so unaffordable. It's housing that they can't afford. And we think about home prices going down instead of celebrating that we treat it as a calamity. The fundamental problem in America is that we've stopped building houses. We're about 5 million units short and we just need more housing.

[Jessica Ettinger]

Lots more on real estate. @cnbc.com I'm Jessica Ettinger. CNBC.

[Kelly Evans]

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