In some Sun Belt housing markets, nearly one in five sellers are listing homes below their original purchase price, according to a new market analysis. The trend marks a significant shift in areas that experienced rapid price appreciation during the pandemic housing boom.
Real estate data firm Redfin examined listings across major metropolitan areas to identify where sellers are most likely to accept a loss. The company analyzed homes listed for sale in the past three months and compared asking prices with the most recent purchase price of each property.
Among the top markets, Phoenix, Arizona, saw the highest share of loss-inducing listings, with roughly 18% of sellers asking less than what they paid. Other Sun Belt cities including Las Vegas, Nevada, and Tampa, Florida, followed closely behind, with about 17% and 16% of sellers respectively taking potential losses.
The pattern reflects cooling demand in regions that once saw bidding wars and record price gains. Higher mortgage rates have reduced buyer affordability, forcing sellers to adjust expectations. Many of these homes were purchased in 2021 or 2022, when prices peaked.
Austin, Texas, also ranked high on the list, with approximately 15% of sellers listing below their purchase price. The city experienced one of the largest price surges during the pandemic, followed by a sharp correction as inventory increased and remote work trends stabilized.
Other markets on the list included Jacksonville, Florida; San Antonio, Texas; and Charlotte, North Carolina. Each of these areas saw significant population inflows during the pandemic, driving up purchase prices that are now difficult to recover in a slower market.
Selling at a loss does not always indicate financial distress. Some homeowners may need to relocate for jobs or personal reasons and are willing to accept a setback to close a deal. Others are adjusting prices to compete with newly built homes and increased housing supply.
For buyers, these listings may offer opportunities to purchase homes below recent market values. However, potential depreciation risks remain, especially if home prices continue to soften in the coming months.
Redfin noted that the trend is concentrated in the South and West, while many Northeast and Midwest markets continue to see sellers profit. The divergence highlights how local supply and demand conditions, rather than national trends, shape housing market outcomes.
Economists expect the pattern to persist as long as mortgage rates remain elevated. Sellers who purchased at peak prices may face continued pressure to lower asking amounts, particularly in regions where inventory has risen steadily since last year.
