BiggerPockets Daily Homes Are Beginning to Sell Below Purchase Price at a Higher Rate
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Aug 25, 2025 A recent analysis reveals that nearly 6% of homes listed are at risk of selling at a loss, highlighting a significant shift in the housing market. Condos and homes bought after the pandemic are especially vulnerable, particularly in cities like San Francisco and Austin. Although losses are rare compared to the Great Recession, today's buyers are gaining leverage due to increasing pressure on sellers. Navigating these fragile conditions requires a careful assessment of local markets and understanding the impact of high mortgage rates.
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Rising Share Of Listings At Risk
- Redfin finds nearly 6% of current U.S. home listings risk selling below purchase price, up from 4.4% last year.
- The risk concentrates in markets like San Francisco and Austin where declines reach double digits for listings at risk.
Condos Are Disproportionately Vulnerable
- Condos face far higher risk: almost 1 in 10 nationally and up to 35.6% in San Francisco.
- Post-pandemic condo buyers are especially exposed, with nearly 30% bought after the boom at risk.
When You Bought Matters A Lot
- Time of purchase matters: 16.4% of homes bought after July 2022 are likely to sell at a loss versus 1.8% bought before the pandemic.
- The post-2022 cohort faces the biggest exposure due to peak pricing then and subsequent slowing.