Buying a Home

1 in 5 Homes for Sale Has Cut Its Price. Here’s How Holiday-Season Buyers Can Turn That Into $130 a Month

With 21.2% of listings cutting prices and buyers scarce, late-year house hunters have leverage. A seller credit can save almost 3x more per month than the same price cut.

By Shivam Kaushik · Updated November 8, 2026 · 4 min read

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If you’re house hunting while everyone else is shopping for holiday gifts, you may have more leverage than buyers have had in years. Redfin found that 21.2% of homes for sale had a price cut in the four weeks ending Nov. 1, 2026, while pending sales fell to the lowest level in its records going back to 2021.

Here’s the twist most buyers miss: how you take a discount matters. In our example, asking for a seller credit toward your rate saved about $130 a month. The same dollars as a price cut saved about $47.

Quick answers

21.2% of listings had a price drop, up from 20.6% a year earlier (Redfin).
Pending sales hit their lowest level in Redfin’s records, and fell in every metro Redfin tracked for four weeks running.
On a median $388,604 home, a 2% concession is about $7,772.
Used as a price cut, that saves about $47/month. Used to buy discount points (example pricing), it could save about $130/month.

Why late-year buyers have an edge right now

Fewer people shop for homes between Thanksgiving and New Year’s. This year, that seasonal slowdown is stacking on top of an already slow market. In Redfin’s latest weekly data, pending sales were the lowest on record (since 2021), new listings were the lowest since January, and the median sale price dipped 0.4% from a year ago. Seattle saw the steepest drop in pending sales, down 30.5% year over year.

A seller whose home has been listed for weeks, with few showings and the holidays coming, is often more open to a deal than a seller in the spring rush.

Price cut vs. seller credit: we ran the numbers

Example: Redfin’s median price of $388,604, 10% down, a 30-year fixed at 7.18% (Freddie Mac’s Nov. 5, 2026 average). We assumed the seller agrees to give up 2%, or $7,772.

How you use the $7,772	Monthly P&I	Monthly savings
No discount	$2,369	—
Price cut (home now $380,832)	$2,322	$47
Seller credit buys ~2.2 discount points (example: 0.25% off per point)	$2,239	$130
Seller pays for a 2-1 buydown (costs ~$8,218)	$1,916 yr 1, $2,138 yr 2, then $2,369	$453 yr 1, $231 yr 2

Point pricing varies by lender and day. One point equals 1% of the loan; how much it lowers your rate is up to the lender. Seller credits are subject to loan-program limits.

Why the big gap? A price cut only shrinks the loan by $7,772 (actually less, since 10% of it was your down payment). A lower rate shrinks the cost of the whole $349,744 loan every single month.

Fun factA price cut does have one advantage: it lowers your property tax base in many places and gives you a smaller loan if you sell or refinance early. If you expect to move or refinance within a few years, the math can tilt back toward the price cut.

How to ask, step by step

Check days on market and price history. A listing with one or more cuts and 45+ days on market usually has the most room.
Get your lender’s points quote first. Ask: “What rate do I get with zero points, one point and two points today?” Then you know what a credit is worth to you.
Ask for a credit “toward closing costs and rate buydown.” Your agent can write this into the offer. Make sure your lender confirms the amount is allowed for your loan type.
Compare the full cost. Use our buydown calculator and closing cost calculator before you sign.
Don’t skip inspection to “win.” In a slow market, sellers expect normal contingencies. Our closing costs explainer shows what you’ll be paying for.

Myth buster“Points are always a rip-off.” Not always. Paying for points with your own cash only makes sense if you keep the loan long enough to break even. When the seller pays for them, the math changes completely, because the money wasn’t yours to begin with. More in our mortgage points guide.

What this means for you

First-time buyers: a seller credit can also cover closing costs, which helps if your cash is tight.
Buyers planning to stay 7+ years: a permanent rate cut from points usually beats a temporary 2-1 buydown.
Buyers expecting rates to fall: a 2-1 buydown gives lower payments now while you wait to see if a refinance makes sense later. Nobody can promise rates will fall.
Sellers: offering a rate-buydown credit can attract payment-focused buyers without a visible price cut on the listing. See where the market stands in our pending home sales piece.

FAQ

Is November or December a good time to buy a house?

It can be. Fewer buyers compete, and sellers who list during the holidays are often motivated. This year, record-low pending sales and a 21.2% share of price cuts add to buyers’ leverage.

How much can a seller give toward closing costs?

It depends on the loan type and your down payment. Conventional, FHA and VA loans each have their own limits, so ask your lender before you write the offer.

Is a price cut or a rate buydown better?

For most buyers who keep the loan for years, a rate buydown lowers the monthly payment more. If you’ll sell or refinance soon, a price cut may be worth more.

What is a discount point?

A fee equal to 1% of the loan amount, paid at closing, to lower your interest rate. How much it lowers the rate varies by lender.

Sources: Redfin housing market update, four weeks ending Nov. 1, 2026; Freddie Mac PMMS via FRED; Keys & Coffee calculations. This article is general education, not financial advice. Keys & Coffee is not a lender.

Written by

Shivam Kaushik· IMSHIVA

Founder & Director, QuibbleTech Solutions Pvt Ltd · Editor, Keys & Coffee

Shivam Kaushik is the founder of QuibbleTech Solutions Pvt Ltd and the editor of Keys & Coffee. He is not a licensed loan officer or financial adviser. Every guide here is written in plain English and checked against official sources such as the CFPB, HUD, Fannie Mae, Freddie Mac and the Federal Reserve. For advice on your own loan, talk to a licensed lender.

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Keys & Coffee is an independent education site. We are not a lender or mortgage broker, we do not take loan applications or payments, and nothing here is financial advice. This site is not affiliated with Axia Home Loans, Axia Financial, LLC, or Planet Home Lending. Rates and rules change often — always confirm details with a licensed loan officer and check any lender on the NMLS Consumer Access site.